Attorney
Ask ten Albuquerque locals what “green chile” tastes like, and you’ll get ten different answers. Mild. Medium. Hatch-in-August-fiery. It’s one word covering a huge range of flavor. The same is true when someone tells you hiring a “financial expert” is a must when you are headed toward divorce. That phrase covers professionals who do wildly different jobs, and hiring the wrong one can cost you time, money, and leverage at the negotiating table.
If you or your spouse own a business or professional practice, chances are you’ll need one of two experts: a forensic CPA or a business appraiser. Sometimes you need both. Here’s how to tell which flavor of financial expert your divorce calls for.
The Forensic CPA: Following the Money
A forensic accountant’s job is investigating. They track down accounts, trace cash flow, and verify that income and expenses reported on financial disclosures match what’s actually happening in the business’s books. They can also identify anything that looks off, like unreported income, personal expenses run through the business, or asset movement that happened in anticipation of the divorce.
You typically need a forensic CPA when:
- One spouse has significantly more control over the finances
- Income is inconsistent, cash-heavy, or difficult to verify from tax returns alone
- You have a reasonable suspicion that your significant other isn’t being open or truthful financial
- You need clarity on what a business actually generates in income before any valuation conversation can happen
In New Mexico, financial disclosure is one of the foundational steps toward divorce. It is critical that all of a couple’s assets and debts be properly identified early on.
The Business Appraiser: Determining What It’s Worth
A business appraiser, often holding an ABV (Accredited in Business Valuation) credential, has a narrower and more specific job: determining the fair market value of a business or professional practice as of a given date, using recognized valuation methods. Where a forensic CPA asks “is this accurate?”, a business appraiser asks “what is this actually worth?”
You typically need a business appraiser when:
- A business, practice, property, or investment needs to be valued
- There’s a partnership or professional practice interest that needs a defensible number attached to it
- The couple has determined how they want to move forward, and the only open question is value
Because New Mexico is a community property state, there is a presumption that all of a couple’s assets are jointly owned, and that the value of all jointly owned assets will be divided 50/50 in divorce. The value of a couple’s assets determines what each spouse will walk away from the marriage with.
Joint Experts vs. Dueling Experts
In amicable divorces, couples often agree to retain one neutral expert (or team of experts) whose findings both sides will agree to abide by. This is faster, less expensive, and can eliminate a lot of back and forth over dueling reports.
In more contested cases, each side may retain their own expert, and their conclusions can differ enough to require a court hearing. When valuations conflict significantly, an appraiser’s methodology can face what is known as a Daubert challenge, where the judge decides whether the expert’s approach is reliable enough to be admitted as evidence.
CPA vs. ABV: Which Financial Expert is Best?
If you’re not confident the financial picture is complete, start with a forensic CPA. If the numbers are trustworthy and you just need to know how much something is worth, go straight to a business appraiser.
Many high-asset divorces involving a business or professional practice ultimately need both. The CPA figures out what is going on, and the appraiser puts a price tag on it.
What’s My Attorney’s Role?
Any family lawyer that’s worth their salt won’t just hand your case off to a CPA or appraiser and wait for a report. And that’s especially true if you are working with attorney Bob Matteucci, who has years of business experience and an MBA as well as a law degree.
Bob not only helps his clients figure out if hiring a financial expert is needed, he sets the scope of the engagement, makes sure the right questions are being asked, and reviews the findings closely enough to know whether the methodology holds up. If a valuation looks aggressive, a disclosure looks incomplete, or an opposing expert’s conclusions don’t add up, he’s got the financial chops to catch it and challenge it.
Serving Families with Dignity & Compassion
Just as a good New Mexican cook knows exactly which pepper a dish calls for, the right legal guidance means knowing which expert — or combination of experts — your situation actually requires. Bob Matteucci understands both the legal and financial sides of these decisions, and can help you build a strategy that protects your business, your finances, and your family’s future. Please contact him today to set up a meeting.