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 North Dakota, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. State statutes and federal law do not specifically regulate the practice of forensic accounting, but these professionals must adhere to the general standards of accounting practice and any relevant licensing requirements. In high-asset or high-net-worth divorce cases, forensic accountants play a crucial role in ensuring an accurate assessment of marital assets and incomes, which is essential for the equitable division of property and determination of spousal and child support. North Dakota follows the equitable distribution principle, meaning that marital property is divided in a manner that is fair but not necessarily equal. A forensic accountant's findings can significantly influence the court's decisions regarding asset division and support obligations. It is important for parties in a divorce to disclose all assets and financial information truthfully, and the involvement of a forensic accountant can help ensure transparency and fairness in the process.