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 Wisconsin, during divorce proceedings, financial transparency is crucial, particularly in high-asset or high-net-worth cases. Wisconsin is a community property state, meaning that all marital property is generally divided equally between the spouses upon divorce. If there is financial manipulation or fraud, it can significantly impact the division of assets, as well as spousal and child support determinations. To ensure a fair division of assets and accurate calculation of support payments, one or both spouses may engage a forensic accountant. These professionals specialize in uncovering hidden assets and financial discrepancies in various types of accounts and assets, including but not limited to tax returns, bank and investment accounts, and physical assets like real estate and luxury items. The process of uncovering these hidden assets, known as financial tracing or forensic accounting, is critical for providing the court with a complete and accurate picture of the couple's finances. Wisconsin statutes and case law support the equitable division of assets and the use of expert testimony, such as that provided by forensic accountants, to achieve fairness in divorce settlements.