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Should You Hire a Forensic Accountant During a Partnership Dispute?

When shareholder disputes or partnership dispute arise, one of the biggest issues that usually leads to the disagreement is the financial management of the company. One or more partners or shareholders may believe that co-owners of the business organization are embezzling funds or spending in a wasteful and damaging manner. These types of allegations are serious, especially as embezzlement can result in criminal charges. forensic accountant

Getting the objective facts is essential to resolving partnership disputes when money is at stake. In some cases, this means a shareholder and partnership lawyer should hire a forensic accountant during a partnership dispute.  An Orange County, CA partnership dispute attorney at Brown & Charbonneau, LLP can carefully evaluate the circumstances of your disagreement and can provide you with advice on whether hiring a forensic accountant is a good choice in your situation. Our experienced attorneys also have a strong relationship with a network of qualified forensic accountants who can investigate your company’s financial affairs so you can be fully informed.

Should You Hire a Forensic Accountant During a Partnership Dispute?

All partners and shareholders have a fiduciary duty to the company they own and operate. Any partner or shareholder involved with the company must manage money in a responsible manner, acting in the company’s best interests. Misspending funds for personal expenses or personal enrichment is a violation of the law, as well as a violation of the terms of a partnership agreement. Embezzling or taking money out of the company can also be a criminal act.

Often, when there is wrongdoing in relation to a  company’s financial affairs, all partners can become liable for the consequences. For example, if your partners or shareholders are taking money out of company pension funds, are stealing from clients, or are misreporting payroll or income to the Internal Revenue Service, you could face legal action.  You need to make sure you are protecting not just your business, but also your personal interests as well.

Knowing what is going on with your company’s money is essential to protecting yourself and ensuring the longevity and success of your business organization. Unfortunately, when partnership disputes arise in relation to money, you may have a difficult time getting a clear picture of exactly what transactions are occurring and where money is going.  In these situations, it makes sense to hire a forensic accountant during a partnership dispute.

The job of a forensic accountant is to trace the transfers of money that occur and to determine whether your company’s books are accurate. Forensic accountants will carefully review financial statements and accounting records to identify irregularities or inconsistency that are a sign of wrongdoing.

Hiring a forensic accountant can be expensive, so it does not make sense in all partnership disagreements. You should hire a forensic accountant in a partnership dispute if you have reason to suspect your partner has been dishonest when it comes to financial affairs.  An Orange County, CA shareholder and partnership lawyer at Brown & Charbonneau, LLP can provide you with guidance on whether hiring a forensic accountant is necessary and can help you to find the accounting professional who can give you the information you need.