Forensic Accountant & Business Valuation Expert for Texas Matters

Working With Out-of-State Counsel

Joey Friedman, CPA, P.A. is a litigation-focused forensic accounting and business valuation firm engaged by counsel in Texas matters. The firm is based in Florida and works nationwide, handling records-based analysis remotely and traveling for deposition and trial testimony as a matter requires. Mr. Friedman has testified in state, federal and foreign courts, for plaintiffs and defendants, in civil, criminal and marital proceedings. The firm does not prepare income tax returns and does not provide tax planning services. The firm accepts engagements in other states as well — see states served for how the analysis differs elsewhere.

Divorce in Texas is heard in the District Court. Texas has no single statewide family court — dissolution sits within the general district court system, and in the more populous counties particular numbered district courts are designated to specialise in family matters. Federal matters are heard in Texas’s four federal judicial districts — Northern, Southern, Eastern and Western. Mr. Friedman is regularly engaged in matters in states across the United States, as well as in international matters, and the firm accepts Texas engagements in state and federal proceedings alike.

Retaining a forensic accountant from outside the state is common in financial disputes, and in some matters it is preferred:

• Conflict distance. An out-of-state expert is less likely to have prior or ongoing relationships with the parties, their businesses, their banks or their other advisors.
• Records-based work travels. Tracing, normalization and damages analysis are performed on documents and data. The location of the analyst does not change what the records show.
• Independence is visible. Where the parties move in the same local professional circles, distance from those circles is easier to explain to a finder of fact.

Why Texas Is Not Simply “A Community Property State”

Texas and California are both community property states, and they behave differently in two ways that matter more than the label. Understanding which one applies changes what a forensic engagement is actually looking for.

There is no separation-date cut-off

Texas does not recognise legal separation. Property accumulated during the marriage and up until the divorce is final is presumed community. So unlike California, there is no earlier date at which the community stops growing and income becomes separate. The practical consequence is that the period under review runs to the end of the case, and a business that keeps earning through a long, contested divorce keeps generating community value while it does so.

Division is “just and right,” not mandatory halves

A Texas court divides the community estate in a manner it considers just and right, which permits a disproportionate division. That makes Texas a hybrid: community property in how assets are characterised, discretionary in how they are split. Because the outcome is not presumptively equal, the financial record carries real argumentative weight — earning capacity, wasting of assets, and the tax consequences of a proposed division all become evidentiary questions.

The presumption puts the burden on tracing

Property on hand at divorce is presumed community, so a spouse claiming an asset is separate generally has to prove it. That is a tracing problem, and it is won or lost in the records — following premarital funds, inheritances and gifts through accounts where they have often been commingled for years.

Personal versus enterprise goodwill

Where a business depends on one individual, part of its value may not transfer to a new owner. The firm calculates and separates the transferable value from the non-transferable value and documents the basis for each. This is a financial calculation, not a legal determination — how that split is treated is a matter for the court under Texas law.

Forensic Accounting and Litigation Support

Hidden Asset Tracing

Following money through business accounts, related entities and personal accounts to establish what exists and where it went — common in divorce and in partnership disputes where one side controlled the books.

Business Valuation Disputes

Valuation of closely held businesses for marital dissolution, shareholder and partnership disputes and buyouts, including the normalization questions that decide most of these cases: owner compensation, discretionary expenses, related-party transactions and customer concentration.

Economic Damages and Lost Profits

Quantifying what was lost, on a method that survives cross-examination, and identifying where an opposing calculation departs from the records it claims to rest on.

Fraud and Embezzlement Investigations

Reconstruction of what happened from the underlying records — misappropriation, fictitious vendors, payroll schemes and diversion — documented so it can be presented to a court, a board or an insurer.

Rebuttal and Opposing-Expert Review

Review of an opposing expert’s report to identify method departures, unsupported assumptions and figures the underlying records do not support.

Deposition and Trial Testimony

Expert testimony in state, federal and foreign courts, in depositions, mediations, arbitrations including AAA, and jury and non-jury trials, for plaintiffs and defendants alike.

Frequently Asked Questions

Does Texas split community property fifty-fifty?

Not necessarily. A Texas court divides the community estate in a manner it considers just and right, which allows an unequal division. This is a real difference from California, where the community estate is divided equally.

Does moving out stop the community from growing?

No. Texas does not recognise legal separation, and property accumulated up until the divorce is final is presumed community. There is no separation-date cut-off of the kind California applies.

How do I show an asset is separate rather than community?

By tracing it. Property on hand at divorce is presumed community, so the burden generally falls on the spouse asserting an asset is separate — which means following premarital funds, inheritances or gifts through the accounts, often after years of commingling.

Which court hears a divorce in Texas?

The District Court. Texas has no single statewide family court; in more populous counties particular numbered district courts specialise in family matters.

Does a long, contested divorce change the numbers in Texas?

It can, and this is a distinctively Texan point. Because the community continues accumulating until the divorce is final, a business that keeps earning through a lengthy case keeps generating community value while the case runs.

Can a Florida-based expert work on a Texas case?

Yes, and it is common. The analysis is performed on documents and data, which does not depend on the analyst’s location, and the firm travels for deposition and trial testimony as a matter requires.

What records are needed to start?

Business tax returns and financial statements for several years, the general ledger in native form, bank and credit card statements, payroll records, and any loan applications or personal financial statements. Incomplete records do not prevent the work; they change its sequence.

What credentials should a financial expert in a Texas matter hold?

For matters that may reach a hearing, the relevant considerations are accounting credentials, experience with the specific analysis at issue, and a record of testifying. Mr. Friedman is a CPA accredited in Business Valuation (ABV) by the AICPA and a member of the Association of Certified Fraud Examiners.

Discuss a Texas Matter

Joey Friedman is a CPA accredited in Business Valuation (ABV) by the AICPA, a member of the Association of Certified Fraud Examiners, with more than 25 years in accounting and forensic practice and an expert witness practice serving attorneys and litigants nationwide since 2014. To discuss whether the firm is the right fit for a matter — including scope, timing and whether an out-of-state expert suits the case — call 954-282-9615 or use the contact form.