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 Louisiana, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. Louisiana is a community property state, meaning that all assets acquired during the marriage are considered jointly owned by both spouses. In high-asset or high-net-worth divorce cases, it is crucial to have an accurate assessment of the couple's finances to ensure a fair division of property, as well as to determine appropriate spousal and child support payments. Forensic accountants are often hired to conduct financial tracing or asset tracing to reveal any hidden assets or financial discrepancies. Their work can be pivotal in identifying undisclosed or undervalued assets, ensuring that the court has a complete and accurate picture of the marital estate. The findings of a forensic accountant can significantly impact the outcome of property division and support determinations in a divorce proceeding. State statutes and case law govern the division of assets and the role of forensic accountants in these proceedings, ensuring that the process adheres to principles of equity and fairness.