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 Virginia, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. Their expertise in uncovering financial fraud and tracing assets ensures that all marital property is accurately accounted for during the division process. Virginia is an equitable distribution state, meaning that marital property is not necessarily split 50/50 but rather in a way that is considered fair by the court. A forensic accountant's findings can significantly influence the determination of what is deemed fair, affecting the division of assets, as well as spousal and child support calculations. The use of forensic accountants is not mandated by law, but either spouse may choose to hire one to ensure a transparent and thorough examination of the financial aspects of the marriage. Their analysis can reveal hidden assets, underreported income, or overvalued debts, which can be critical for a fair settlement. The court may also rely on the forensic accountant's report to make informed decisions regarding the financial matters in the divorce.