AnfusoTeamWelcome to the blog of Ron J. Anfuso, CPA/ABV, An Accountancy Corporation. Our blog serves as an adjunct to our website (www.anfusocpa.com). On this blog, you will find valuable information about our practice, as well as general guidance concerning Forensic Accounting for Family Law. You will also find a copy of our most recent newsletter, as well as an archive of all of our past newsletters, which include links to free downloads.

We have recently updated the blog and added two new articles. These include In re Marriage of Bonvino: Findings Change Precedence in Real Property Apportionment Calculations, and Why So Many Documents for a Business Valuation? I hope you find these articles and our other content informative and helpful.

By Ron J.  Anfuso, CPA,  ABV, CFF, CDFA, FABFA

Approximately three years after their marriage, Dawnel and Frank Bonvino purchased a family home in Westlake Village with a down payment from husband’s resources and the proceeds from a loan in his name. The property was purchased in 1996. Title to the home was taken in Frank’s name as sole and separate property. Approximately 15 months later, Frank completed the sale of a property in Long Beach that he purchased prior to their marriage and used the funds from the sale to pay off the loan on the Westlake Village home. Several years later, Dawnel moved out. She filed for divorce in 2005. Read more

Not all marital dissolution cases require the services of a Forensic Accountant. However, many of the more complicated cases in this ever complex and changing area of law do. Some of the reasons to retain a Forensic Accountant are as follows:

• When unreported or underreported income is an issue

• When one or both of the spouses is self-employed

• When one of the spouses has separate property claims

• When temporary and permanent spousal and child support are an issue

• When a determination of the marital lifestyle is required

• When accounting for reimbursements, tracing, allocation, apportionment and characterization of assets is needed

• When a valuation of a business interest is required

• When determination of business, executive or professional goodwill is needed

• When there has been a commingling of funds (See v. See)

• When there are reimbursement claims for post-separation maintenance of community assets (Epstein)

• When the community has made payments on a separate property residence (Moore/Marsden)

• When an apportionment of community business is necessary (Pereira/ Van Camp).

1. Determine the separate property and community property percentage interest in the property.

2. The separate property percentage interest is determined by crediting the separate property with the down payment and the full amount of the loan on the property less the amount by which the community property payments reduced the principal balance of the loan.

3. This sum is divided by the purchase price. The resulting figure is the separate property percentage share.

4. The community property percentage share is determined by dividing the amount in which community property payments reduced the principal by the purchase price.

5. The separate property interest in the property as valued at the end of marriage is determined by adding all the prenuptial appreciation, the amount of capital appreciation during marriage attributable to the separate funds (determined by multiplying the capital appreciation during marriage by the separate property percentage interest), and the amount of equity paid by separate funds.

6. The community property share in the value of the property is determined

by adding the amount of capital appreciation during marriage attributable to community funds to the equity paid by community funds.

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• Personally taking all calls that are directed to me from referring attorneys and their clients

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• Continuing to deliver all testimony myself

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I wish to thank those of you who have placed your faith in my firm to fulfill your Forensic Accounting needs. We look forward to continuing to serve you and your clients.

Ron