Business Valuation Experts, Discovery & General Ledgers

Business valuation experts know they need general ledgers.  But do family lawyers and judges even know what general ledgers are?  Mason describes some of the challenges he has experienced.

For CPE credit to view this presentation and others from this conference, click here: 2023 FORENSIC & VALUATION SERVICES CONFERENCE BUNDLE.

Experiences that can expedite and move financial discovery forward.

1. Paper the damn thing. Be the loud and squeaky wheel.  “Dear Attorney, I need my documents.”
   1. “I won’t be able to do my job without them.” Possibly explain ethical problems.
   2. “I need to know the status of the documents. I will fire your client.”
2. If you can access the docket online, check it every now and then for pleadings being filed, like discovery, that you didn’t know.
3. Explain to attorneys that you are glad to review the discovery and give them:
   1. PRO TIP: Opinion on what information and documents remain needed. Can also be called a “discovery deficiency memo.”  (Note: why is this a pro tip?  Many lawyers will let the document production sit in the corner until the lawyer has time to devote an hour or two.  But what if that time doesn’t come?”  PHOTO OF BOX IN THE FLOOR
   2. Opinion on appreciation of separate property.
   3. Marital balance sheet.
   4. Income and expense analysis year to year
   5. Disclaim “hidden money” investigation unless engaged to do so, kind of like fraud audits.

Why attorneys do things at the last minute.

1. The positive reason: things change. Litigation is chess, not checkers.  Sometimes, you wait to get as much information and time as possible before deciding your next move on the chess board.
2. The negative reasons:
   1. Lack of training.
   2. Lack of experience.
   3. No forms file.
   4. Fear of looking stupid.
   5. Lack of professional support staff.
   6. Good ol’ fashioned procrastination.

Hidden Assets & Enhanced Financial Investigation: What “A List” Attorneys Know about Discovery Others Don’t. This presentation is for business valuation and forensic accounting expert witnesses.

Mason’s “Hidden Assets” presentation discusses: Experts must learn the legal process. When should experts stick their nose in? Why there is no line to worry about crossing. How subpoenas actually work. How experts can help with subpoenas. Why the subpoena process is not more frequently used and quick enough. Experiences that can expedite and move financial discovery forward. Why attorneys do things at the last minute. Why attorneys wait too late to hire the financial expert.

This video is an excerpt from Miles Mason, Sr., JD, CPA’s presentation at the 2023 Tennessee Society of CPA’s Forensic and Valuation Services Conference, Oct. 24, 2023, in Brentwood, Tennessee.

To learn more about divorce and forensic accounting, buy Mason’s The Forensic Accounting Deskbook published by the ABA Family Law Section. Forensic accounting can help family lawyers win cases while at the same time their clients are able to keep money which might otherwise be taken from them by the difficult and confusing divorce process. This updated edition of one the ABA’s most popular resources explains the practice of forensic accounting and business valuation and how to apply it in family law cases.

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