Complex Assets Require Precise Legal Work

A forensic accountant applies one or more recognized approaches: income, market, or asset-based. The income approach capitalizes the business's normalized earnings. Courts distinguish enterprise goodwill, which is a community asset, from personal goodwill attached to the owner individually, which is not subject to division.

Partially. California courts apply a time-rule formula that allocates unvested RSUs between community and separate property based on the grant and vesting dates relative to the date of marriage and date of separation. The portion earned during marriage is community property regardless of when shares actually vest.

Tracing is the process of documenting that funds used to acquire an asset originated from a separate property source. It is required whenever separate and community funds have been deposited into the same account or used together to purchase property. Without adequate records, the community property presumption controls.

Courts look to all income available to each party. Equity award income, including RSU vesting events and option exercises, is included in the income calculation. Because this income can be irregular, courts sometimes average it over several years to reach a representative monthly figure for support purposes.

Yes, if it meets California's requirements for validity. The agreement must be in writing, signed voluntarily with independent legal counsel available to each party, and must not be unconscionable. A valid prenup can recharacterize property, waive spousal support, and define what remains separate during the marriage.

A forensic accountant traces the character of assets, normalizes business income for support calculations, values business interests, and identifies whether reported income reflects actual cash flow. In cases involving privately held companies or complex compensation structures, forensic accounting is often central to both property division and support determinations.