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 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 Alaska, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. Alaska is an equitable distribution state, meaning that marital property is divided equitably, but not necessarily equally, in the event of a divorce. The role of a forensic accountant becomes crucial in high-asset or high-net-worth divorce cases to ensure a fair division of assets and accurate determination of spousal and child support. These professionals conduct financial investigations, often referred to as tracing or asset tracing, to follow the money trail and identify any hidden assets or financial discrepancies. The findings of a forensic accountant can significantly influence the court's decisions regarding the division of marital property and the calculation of support payments. It is important to note that while forensic accountants provide valuable financial insights, their involvement and the admissibility of their reports in court proceedings are subject to Alaska's rules of evidence and procedure.