A forensic accountant is generally an accountant with expertise in detecting financial fraud or manipulation in personal and business tax returns, bank accounts, investment accounts, retirement accounts, broker accounts, offshore accounts, cash, cryptocurrency, jewels, art, cars, yachts, airplanes, real estate, life insurance policies, and related financial documents. This financial investigation work is often referred to as tracing, financial tracing, asset tracing, or forensic accounting, and generally involves “following the money” by tracing a piece of financial information or data back to its source.

In divorce litigation—and especially in high-asset or high-net-worth divorces in which there is significant marital or community property—any financial manipulation or fraud of personal or business finances may have a significant effect on the marital or community property that is available for division, and on spousal support and child support payment amounts. One or both spouses in a divorce may hire a forensic accountant to discover any hidden assets or manipulated financial documents that may prevent the court from having an accurate accounting of the marital or community property assets and the spouses’ incomes.

In Hawaii, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. Hawaii operates under equitable distribution laws for divorce, meaning that marital property is divided in a manner that is fair but not necessarily equal. Forensic accountants play a crucial role in high-asset or high-net-worth divorce cases by conducting financial investigations to ensure an accurate assessment of marital assets and individual incomes. This process, known as financial tracing or asset tracing, helps to reveal any hidden assets or financial discrepancies that could impact the division of property, as well as spousal and child support determinations. The findings of a forensic accountant can be pivotal in court decisions regarding the distribution of assets and the calculation of support payments. It is important for parties in a divorce to disclose all assets and income fully and accurately, and the use of a forensic accountant can help ensure that all financial information is brought to light.