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 Connecticut, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or complex asset portfolios. Their expertise in financial investigations, often termed as tracing or forensic accounting, is utilized to uncover any hidden assets, financial fraud, or manipulation within personal and business financial documents. This includes examining tax returns, bank and investment accounts, retirement and broker accounts, as well as tangible assets like real estate and luxury items. The findings of a forensic accountant can significantly impact the division of marital property, as well as the determination of spousal and child support payments. Connecticut law requires an equitable distribution of marital assets during a divorce, which means that the court must have a clear and accurate picture of the couple's finances. Forensic accountants help ensure that all assets are disclosed and valued properly, allowing for a fair division. Their work ensures that both parties' financial contributions and needs are considered in the final settlement.