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 Idaho, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation within various financial domains, including tax returns and investment accounts. This practice is particularly relevant in divorce litigation, especially when significant assets are involved. Idaho is a community property state, meaning that all property acquired during the marriage is considered jointly owned by both spouses. In the event of a divorce, this property must be divided equally. If one spouse suspects the other of hiding or manipulating financial information to affect the division of assets or calculation of support payments, they may hire a forensic accountant to conduct an asset trace. The forensic accountant's role is to 'follow the money' and provide a clear picture of the couple's financial situation to ensure a fair division of property and accurate determination of spousal and child support. The findings of a forensic accountant can be critical in court proceedings, as they can influence the court's decisions regarding asset division and support obligations. It's important to note that while forensic accountants provide valuable financial insights, the ultimate decisions in divorce cases are made by the court based on the entirety of the evidence presented.