When should a divorce attorney hire a financial expert?

The financial issues that call for an expert

Not every divorce case needs a financial expert. But when any of the following are present, engaging one early can change the outcome:

Business ownership

If one spouse owns a business - even a small one - a business valuation professional should be engaged. The business may be the largest marital asset, and its value depends on normalization, goodwill allocation, and methodology that the attorney alone cannot determine.

Self-employment income

When a spouse is self-employed, the tax-return income is rarely the true income. A forensic financial analyst can normalize the income, identify personal expenses in the business, and provide a defensible figure for support calculations.

Separate property claims

If either spouse claims separate property - premarital assets, inheritances, gifts - a tracing analysis is needed. The longer the marriage and the more commingled the accounts, the more complex the tracing.

Complex retirement assets

Multiple retirement accounts, pensions, premarital balances, and plans with special rules (TSP, FERS, military, URS) all require financial analysis to divide correctly.

Significant or unequal assets

When the marital estate includes substantial assets with different tax bases (brokerage accounts, real estate, retirement), the after-tax values must be compared to ensure an equitable division.

Disputed or hidden income

If there's reason to believe a spouse is underreporting income, hiding assets, or manipulating the financial picture, a forensic financial analyst can investigate and document the discrepancies.

When to engage the expert

Before discovery

Engaging a financial expert before discovery allows them to help shape the document requests. They know exactly which records to request - and which are commonly withheld or overlooked.

Before settlement discussions

An expert's analysis gives the attorney leverage in negotiation. If the other side's numbers are wrong, the expert's report provides the evidence to challenge them.

Before mediation

A financial analysis prepared before mediation helps the attorney and client evaluate proposals in real time, rather than accepting or rejecting offers without understanding the financial impact.

Before trial

If the case goes to trial, the expert's report and testimony are essential. But waiting until trial preparation to engage the expert means the analysis is rushed and the expert has less time to review the records.

What type of expert to hire

CDFA® (Certified Divorce Financial Analyst)

Best for: income analysis, settlement analysis, after-tax comparisons, retirement division, support calculations, and overall case financial strategy.

Forensic financial analyst

Best for: tracing separate property, identifying hidden income, investigating financial irregularities, and reconstructing account histories from incomplete records.

Business valuation professional (CVA, ASA, ABV)

Best for: valuing closely-held businesses, normalizing financials, allocating goodwill, and providing a defensible valuation report.

Tax professional (EA, CPA)

Best for: tax impact analysis, after-tax comparisons, retirement account tax treatment, and estimated tax planning.

Many cases need more than one type of expert. Davis Schuler & Associates has professionals who hold multiple credentials - CDFA®, MAFF, CVA, EA - and can serve in multiple roles.

How the expert supports the attorney

The financial expert does not replace the attorney. They support the attorney by:

• Identifying financial issues the attorney may not have the training to spot
• Guiding document requests - knowing exactly which records to request
• Quantifying the marital estate - providing defensible numbers for negotiation
• Preparing a report that can be used in mediation or at trial
• Testifying as an expert witness if the case goes to trial
• Reviewing the opposing expert's report and identifying weaknesses
• Assisting with cross-examination preparation on financial issues

Factors that typically matter

• Business ownership - any closely-held business needs a valuation
• Self-employment - tax-return income is rarely the true income
• Separate property claims - tracing is needed when premarital, inherited, or gifted assets are at issue
• Complex retirement assets - multiple accounts, pensions, special plan rules
• Significant or unequal assets - after-tax comparisons are needed for equitable division
• Disputed or hidden income - forensic investigation may be required
• Timing - earlier engagement gives the expert more time and more impact
• Type of expert - CDFA®, forensic analyst, valuation professional, or tax professional

Documents commonly reviewed

• The attorney's case file - pleadings, financial declarations, discovery responses
• All financial records produced - tax returns, bank statements, business records
• Discovery requests and responses - to identify what's missing
• The opposing expert's report - if one has been prepared
• Prior court orders - if there are existing orders affecting finances

Common mistakes and misconceptions

• Waiting too long to engage - the later the expert is hired, the less impact they have
• Not engaging an expert at all - assuming the attorney can handle the financial analysis alone
• Hiring the wrong type of expert - a CDFA® for a complex business valuation, or a valuation professional for income analysis
• Not involving the expert in discovery - the expert knows which documents to request
• Rushing the analysis - a rushed report is less defensible and more vulnerable to challenge
• Not reviewing the opposing expert's report - weaknesses in the other side's analysis can change the outcome

When a professional may be useful

Davis Schuler & Associates provides financial expert services to Utah family-law attorneys, including:

• Income analysis for support (CDFA®)
• Business valuation (CVA)
• Separate property tracing (forensic financial analyst)
• Settlement analysis and after-tax comparisons (CDFA®, EA)
• Expert witness testimony and rebuttal
• Discovery assistance and document request guidance
• Rule 26 disclosure and expert report preparation

Contact us to discuss a case and determine which type of financial expert is right for your matter.