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Forensic Accountant forDivorce and Family Lawin Austin, Texas
When a marriage ends, the numbers rarely tell the whole story. A spouse who wants to keep more than their share can move money, understate income, or shift value out of a business long before anyone files. Sage Investigations finds what has been hidden and puts a defensible number on it, so a settlement can reflect what the marital estate is actually worth.
The role
What a forensic accountant does in a divorce
A divorce forensic accountant investigates the financial side of a separation and turns findings into evidence an attorney can use. In practice that means tracing where money came from and where it went, separating community property from separate property under the Texas Family Code, valuing assets that do not have an obvious price, and testing whether reported income matches the lifestyle the spouse actually lives.
The work matters most when one spouse controlled the finances, when a closely held business or professional practice is part of the estate, or when a hidden account or a low valuation would change the settlement by a large amount. If you are weighing whether it is worth hiring help, see what to know before hiring a forensic accountant.
We are a licensed Texas investigation firm (PSB #A10803) led by Edmond Martin, a former Special Agent with the IRS Criminal Investigation Division. We bring asset-tracing methods used in federal financial-crime cases to divorce work in Austin and across Central Texas.
Business valuation in divorce
When a business is part of the marital estate, its value is often the largest disputed number in the case. An owner-spouse may try to make the business look less profitable by accelerating expenses, delaying revenue, adding liabilities, or paying salaries to people who do not really work there. Closely held businesses are harder still, because there is no public market price.
Sage analyzes the company’s books, normalizes owner perks and one-time items, and examines actual cash flow to support an independent valuation that can stand up to scrutiny.
Expert testimony and negotiation support
We provide expert witness testimony in court, deposition, or arbitration, and we lend support during settlement talks. The aim is a clear explanation of the financial evidence, in language a judge can follow, and a realistic view of what different settlement options mean.
Results
Representative results
Community income from separate property
Sage was hired to examine the expenditure of the separate estates of a husband and wife. The wife had used a large sum of separate funds to purchase, rehab, and sell homes, generating community income from separate property. After Sage traced the accounts and prepared a report, the wife’s attorney used the report and settled the case in the first mediation. The wife was reimbursed for the purchase money, and the community split the sales proceeds.
More than one-third of the husband’s separate funds
In another matter, Sage was hired to examine separate estates where the wife had spent more than one-third of the husband’s separate funds on reimbursable items. Sage traced the funds and prepared a report. The client and his attorney accepted the report and settled in the first mediation.
What attorneys say
I have relied on Ed Martin and Sage Investigations for more than 10 years to assist me in a wide variety of investigative needs. They have always proved to be completely reliable, professional, intelligent, insightful, and an excellent value for the fee they charge. … Ed Martin of Sage Investigations is my ‘go to’ guy.
How is Sage different from a CPA doing a divorce tracing?
Our principal, Edmond Martin, has 25+ years of experience as an IRS Special Agent following money, and Sage brings 25+ years of litigation support, including tracing in divorce. DIO uses proprietary algorithms to trace separate and community property, allocate commingled funds in bank and brokerage accounts, and follow purchases of other instruments or real property. We use best practices required by the Texas Family Code.
Do you work under attorney work product?
Yes. Once a family law attorney retains us, we work under the attorney work product privilege as an extension of the legal team.
How do you charge?
Rates vary by the type of case. We require a retainer and bill hourly against it. Call 512-659-3179 to discuss the matter.
What can I expect if I hire you?
We work side by side with the client and the attorney throughout the engagement and, if necessary, through trial. You can expect an objective report and, when needed, testimony to the facts in court.
