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 Washington State, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high assets or significant community property. Their expertise in uncovering financial fraud and manipulation is vital for ensuring an equitable division of marital assets and accurate determination of spousal and child support payments. Washington is a community property state, meaning that all property acquired during the marriage is considered owned jointly by both spouses and should be divided equally upon divorce. A forensic accountant may be hired by either spouse to conduct financial tracing, which involves meticulously following the money trail to identify any hidden assets or discrepancies in financial records. This process helps to provide the court with a clear and accurate picture of the couple's finances, which is essential for a fair resolution of property division and support obligations. The findings of a forensic accountant can significantly impact the outcome of a divorce settlement, making their role critical in high-stakes divorce cases.