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Friday, Mar 29, 2024

Marriage Dissolution Forensics

Igor Zey Partner and financial planner SRG Encino Although a partner at SRG with more than 36 years of expertise to marital dissolutions, Igor Zey is not a CPA. His expertise as a forensic financial planner and divorce financial planner allows him to testify on imputed interest calculation in the context of divorce and weigh in on ownership issues for corporate and trusteed settings. Zey has testified more than 60 times as a financial expert in California, both in courts and through written declarations. SRG ranks No. 5 on the Business Journal list with 46 CPAs on staff. Question: What is your specialty? There are three distinctly different groups of family law-related financial professionals that are often – and incorrectly – used interchangeably: Forensic accountants, divorce financial planners and forensic financial planners. Forensic accounting is a backward-looking process that focuses on finding, characterizing and valuing assets and income. Divorce financial planning is a forward-looking process that focuses on lifestyle issues relevant to divorce or separation, issues such as the respective post-separation needs and paying abilities of the parties or the financial workability of potential outcomes. A forensic financial planner testifies in court on behalf of divorcing clients on financial issues related to imputed interest calculation on assets available for support, retirement plan analysis in divorce, financial planning, life insurance ownership issues in corporate and trusteed settings, and standard of care issues in the investment and insurance communities. Who are your clients? When it comes to calculating the internal rate of return on assets available for support, valuations on life insurance and annuities – all in the context of divorce – I get hired by family law attorneys. In the context of civil litigation – my expertise in fiduciary duties, trustee misconduct, bad faith as they relate to the sale of life and insurance and annuities – I get hired by civil litigation attorneys. Most interesting part of the job? Winning on behalf of your client. Bringing rational and irrefutable arguments that end the litigation process with a “clean kill” rather than the often protracted, expensive and emotionally draining quagmire of the litigation process. Biggest challenge? Untruthful clients. Especially, if they are your clients! How does your personality help in this industry? I am a fighter. I love the process of being in the “hot seat.” As a chess player with 55 years of playing chess competitively, I often see the litigation process as a game of chess. All of my expertise, psychological acumen and the clear goal of winning the game come in very handy. How has forensic financial planning changed in recent years? I have not seen many financial planners with the requisite background similar to mine to enter the space of forensic financial planning. It is usually the forensic accountants that attempt to do the work for which they are often not qualified. But I think that is changing. What do you see in the future for forensic financial planning? I see more qualified professionals from the financial planning industry being called upon by the family law community. What can your experience in forensic financial planning teach people in other industries? Don’t do what others can do better. Be the best in your own field of expertise. Advice to clients? Settle! It is a lot more cost effective. Separate feelings from rational decision making. Yes, you want the other side to suffer and maybe deservedly so, but the cost of it is not worth it and the emotional damage could be measured in buckets of blood. Also, be fair; judges can see if you spew out nonsense. Well, not always. But I would not take a chance. Finally, think about the future. Make sure you have a good CPA and good financial planner to help with budgeting, investments, insurance, retirement planning and estate planning. Things change after the divorce, but financial matters become even more acute.

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