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 Maryland, forensic accounting is a recognized practice within the field of accounting, particularly useful in legal contexts such as divorce litigation. Forensic accountants are skilled professionals who specialize in uncovering financial fraud, discrepancies, and manipulations across various types of financial documents and assets. Their expertise is crucial in high-asset or high-net-worth divorce cases where the accurate distribution of marital property and the determination of spousal and child support are at stake. Maryland law requires an equitable division of marital property in divorce proceedings, and the discovery of hidden assets or financial manipulation by a forensic accountant can significantly impact the division of assets and support calculations. The role of a forensic accountant in these cases is to trace and document financial transactions to ensure that all assets are accounted for during the divorce process. Their findings can be used as evidence in court to argue for a fair division of property and appropriate support payments.