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 Indiana, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. Indiana follows the 'equitable distribution' model for dividing marital property, which means the court divides assets in a manner it deems fair, though not necessarily equal. A forensic accountant can play a crucial role in high-asset or high-net-worth divorce cases by identifying hidden assets and ensuring that all financial information is accurate and complete. This process helps the court to make informed decisions regarding the division of marital property, as well as determining appropriate spousal and child support payments. The use of forensic accountants is not regulated by specific statutes in Indiana, but their findings can be critical evidence in court proceedings. The admissibility of their reports and testimony is subject to the Indiana Rules of Evidence, and their work must comply with applicable professional and ethical standards.