Forensic Expert Testimony and the Value of the Side-by-side

• Publication year: 2017
• Author: Marie Ebersbacher

Forensic Expert Testimony and the Value of the Side-by-Side

Marie Ebersbacher

Marie Ebersbacher has been a Mayer Hoffman McCann shareholder since 2006, and has served as the CBIZ Forensic & Financial Services National Practice Leader since 2010. Her practice primarily involves high net worth marital estate dissolutions, including multi-year and multi-account complex tracings, apportionment analyses, and business valuations. She also holds the designations of ABV (Accredited in Business Valuation) and CFF (Certified in Financial Forensics), presented by the American Institute of Certified Public Accountants; and CFE (Certified Fraud Examiner), presented by the Association of Certified Fraud Examiners. She is the Chair of CalCPA's Forensic Services Section State Steering Committee through 2018.

There are (at least) two sides to every story, and trials are often necessary because of two differing interpretations of the same statute, law, or precedent. The court makes the ultimate determination of which party is more credible and which interpretation more correctly fits the facts of the case at hand.

Before the expert is ever hired, counsel has met with the client and gathered an understanding of the facts. Counsel then forms a legal theory, applying the client's facts to an interpretation of case law. Forensic CPAs are often called upon as experts to testify for the court, combining their understanding of complex financial concepts with the anticipated testimony and the attorney's legal interpretation.

The purpose of experts meeting and conferring is to resolve as many factual differences as possible out of court, before days of testimony. By meeting with the opposing expert, information or insight that wasn't previously available (such as the business need for certain expenses, or an amended return that reflects audit adjustments) can be shared to correct facts that will reduce opinion differences. The experts can confirm that they are working from the same database of documents to further narrow the differences for the parties. They then translate the differences into a value for the court to either assign or divide. Understanding these components will help you narrow the financial issues for the court and reduce the time and money spent in trial.

• Client Testimony. The court is the ultimate decider of credibility, deciding where the truth lies between two parties whose recollection of events during the marriage differs, sometimes wildly. A common example is the...