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 or secreted 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.

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 Oregon, during divorce proceedings, the division of marital or community property, as well as determinations of spousal and child support, can be significantly impacted by financial manipulation or fraud. To ensure an equitable division of assets and accurate support calculations, either spouse may engage a forensic accountant to uncover any concealed assets or financial discrepancies. Forensic accountants specialize in identifying irregularities in various financial domains, including tax returns, bank and investment accounts, and tangible assets like real estate and luxury items. Their expertise in tracing or asset tracing is crucial for providing the court with a precise financial picture, which is essential for a fair resolution in high-asset or high-net-worth divorces. Oregon law requires full financial disclosure in divorce cases, and failure to disclose assets or engaging in financial manipulation can result in legal consequences, including penalties and an unfavorable division of assets. Attorneys often work with forensic accountants to ensure their clients' interests are protected and justice is served in the division of marital property.