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| When the Numbers Don't Add Up: Blending Forensic Finding Trends and Lifestyle Evidence in Divorce Valuations (2235Q) |
Course CPE: 1 hour
Field(s) of Study: Finance–1 hr
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 25FL1204WTN
Shipping Weight: 0lbs. 0oz. |
| Price:
$99.00 |
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Recording Date: December 4, 2025
Presenter: Michele Laws
Program Description:
In high-net-worth divorces, the story in the financial statements often does not match the lifestyle the parties are living. This session walks you through how to bridge that gap by blending traditional valuation techniques with forensic trends and lifestyle evidence to uncover what is really going on behind the numbers.
Using a detailed, real-world case study (with all identifying details changed), we will follow a matter involving multiple closely held entities, complex ownership structures, undisclosed income streams, cryptocurrency, “creative” use of business expenses, and an enviable lifestyle that simply could not be supported by the reported W-2 income and distributions. You will see how financial deception shows up in practice; through hidden accounts, manipulated financial statements, dissipation of assets, financial infidelity, false or inflated debt, and sophisticated methods of concealment.
We will walk step-by-step through the discovery and analysis process: organizing voluminous records, building timelines, and integrating tools such as lifestyle analysis, bank-deposit and source-and-use of cash methods, proof-of-cash, tracing, vertical and horizontal analysis, ratio analysis, and net-worth methods. You will learn how to connect business-level findings to personal spending patterns and how to translate those findings into adjustments to income streams and business values.
Finally, we will focus on communicating your work: crafting reports that combine words, pictures, and numbers (WPN) to clearly explain, support, contradict, or verify the financial story presented by the parties. We will also discuss the legal implications of financial deception in divorce, collaboration with counsel, and practical lessons you can apply immediately in your own forensic and valuation engagements.
Takeaways
After completing this session, participants will walk away with a practical framework for spotting, investigating, and proving financial deception when the lifestyle and the numbers do not align. They will be able to blend traditional valuation methodologies with lifestyle analysis and indirect forensic techniques to uncover hidden income streams, dissipation, and misclassified assets. Attendees will also gain concrete strategies for organizing complex discovery and presenting their conclusions through clear, persuasive reports that integrate words, pictures, and numbers for the trier of fact. Ultimately, they will feel more confident navigating high-conflict, high-net-worth divorce cases where financial transparency is anything but a given.
After completing this course, you will be able to:
- Identify common red flags of financial deception, dissipation, and financial infidelity in high-net-worth divorce cases
- Identify inconsistencies in financial statements, tax returns, and general ledgers using horizontal and vertical analysis, ratio analysis, and trend review
- Select direct and indirect forensic techniques such as bank deposit, source and use of cash, proof of cash, and cash T analyses to uncover unreported income and hidden assets
- Determine how to integrate lifestyle analysis and net worth methods with business valuation findings to reconcile reported income with observed spending and asset growth
- Recognize how to trace funds through multiple entities and accounts to distinguish marital from non-marital components and to detect fraudulent conveyances
- Determine how to organize voluminous discovery into usable formats, timelines, and issue focused workpapers that support efficient analysis and clear conclusions
- Select persuasive WPN based reporting approaches that clearly identify, explain, contradict, and or verify the financial representations made by the parties
- Determine the legal and practical consequences of financial misconduct in divorce and collaborate effectively with counsel to incorporate forensic findings into case strategy
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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