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 Wisconsin, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or substantial marital assets. Wisconsin is a marital property state, meaning that all property acquired during the marriage is considered jointly owned and subject to division upon divorce. Forensic accountants are hired to uncover any hidden assets or financial discrepancies that could impact the equitable division of property, as well as the determination of spousal and child support. Their expertise in tracing and financial investigation helps ensure that all assets are properly disclosed and valued, preventing one party from concealing wealth or misrepresenting their financial situation to the court. The findings of a forensic accountant can be pivotal in court proceedings, influencing the final financial settlements and support orders. While Wisconsin state statutes do not specifically regulate the role of forensic accountants, their work is governed by the broader legal and ethical standards of the accounting profession and relevant court rules regarding evidence and expert testimony.