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 Delaware, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation within various financial documents and assets. This practice is particularly relevant in divorce litigation, especially in cases involving high-net-worth individuals or substantial marital assets. Delaware courts aim to ensure an equitable division of marital property and the fair determination of spousal and child support. If there is suspicion of hidden assets or financial deception, one or both parties may engage a forensic accountant to investigate and trace financial transactions back to their source. The findings of a forensic accountant can significantly impact the division of assets and the calculation of support payments by providing a clear picture of the true financial situation of the spouses. The use of forensic accountants in divorce proceedings is consistent with Delaware's equitable distribution laws, which require a fair division of marital property based on a comprehensive understanding of each spouse's assets and income.