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Collaborative law: the role of CPAs in a new approach to divorce


Accounting, auditing and tax expertise–as well as objectivity–are important qualities CPAs have traditionally used to assist divorcing parties. However, an innovative new option in Michigan–utilizing collaborative law–may create more opportunities for CPAs to provide advisory services as part of a team approach to “no-court” divorce settlements.

Traditional Divorce Consulting

In an October 2003 Journal of Accountancy article titled, “Starting Over,” Thomas Burrage pointed out several key areas in which CPAs historically have played significant roles in the area of divorce consulting.

* Analysis of financial data according to a range of statutes, regulations, rulings and case law. CPAs do NOT and cannot practice law. However they must have a general knowledge of local matrimonial statutes and case law in order to engage in divorce relations consulting.

* Organization of financial issues related to property settlements and support awards.

* Examination of a couple’s financial records to determine the value of their net assets, jointly and individually; whether assets are encumbered; who earns how much; how much income should be attributed to each spouse, particularly self-employed individuals.

* Addressing the tax consequences of various forms of support and property division.

* Discovery of…

Source : accessmylibrary.com

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