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 Wisconsin, forensic accounting plays a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. Wisconsin is a marital property state, meaning that all property acquired during the marriage is considered marital property and subject to division upon divorce. Forensic accountants are hired to ensure an accurate assessment of the couple's finances by uncovering any hidden assets or financial discrepancies. Their expertise in tracing and analyzing financial data helps to reveal any manipulation or fraud that could affect the equitable distribution of assets, as well as the determination of spousal and child support. The findings of a forensic accountant can be pivotal in court decisions regarding the division of marital property and the calculation of support payments. The use of forensic accountants is fully supported by Wisconsin statutes and case law, which aim to achieve a fair and equitable division of marital assets and ensure that all relevant financial information is considered in divorce proceedings.