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 Oregon, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high assets or high net worth. Their expertise in uncovering financial fraud and manipulation is vital for ensuring an equitable division of marital or community property. Oregon law requires the equitable, though not necessarily equal, division of marital assets in a divorce. Forensic accountants assist by tracing and identifying assets and income that may be concealed or misrepresented, which can significantly impact the determination of spousal support and child support payments. They follow the money trail to provide the court with a clear and accurate financial picture, which is essential for a fair resolution. The use of forensic accountants is not regulated by specific statutes in Oregon, but their findings can be used as evidence in court to support claims of financial misconduct. Attorneys often recommend the engagement of forensic accountants in complex financial cases to ensure that all assets are properly accounted for during the divorce proceedings.