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, or asset tracing, 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 is utilized to uncover financial fraud or manipulation within various financial domains, including tax returns, bank and investment accounts, and tangible assets like real estate and luxury items. The process, known as financial tracing or asset tracing, involves meticulously tracking financial transactions back to their origins to ensure a fair and accurate assessment of marital or community property and income. This is essential for the equitable division of assets and the determination of spousal and child support payments. Oregon state statutes and federal laws provide the legal framework within which forensic accountants operate, ensuring that all parties adhere to the principles of full financial disclosure and transparency during divorce proceedings. The findings of a forensic accountant can significantly influence the outcome of property division and support obligations, and either spouse may engage the services of a forensic accountant to protect their financial interests and rights under Oregon law.