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 Pennsylvania, forensic accounting is a recognized practice within the legal and financial fields, particularly in the context of divorce litigation. Forensic accountants are professionals who specialize in uncovering financial discrepancies, fraud, and manipulation in various financial documents and assets. Their expertise is often utilized in high-asset or high-net-worth divorce cases to ensure an accurate assessment of marital property and individual incomes, which are critical for equitable division of assets, as well as for determining appropriate spousal and child support payments. Pennsylvania law requires equitable distribution of marital property in divorce proceedings, and the findings of a forensic accountant can be pivotal in revealing hidden assets or financial misconduct. This ensures that all assets are properly accounted for and that the financial settlement is based on a complete and truthful representation of each spouse's financial situation. The use of forensic accounting in divorce cases is consistent with Pennsylvania's rules of civil procedure and evidence, allowing courts to consider such expert testimony when making determinations regarding asset division and support obligations.