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 Nebraska, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation, particularly in the context of divorce litigation. Nebraska is an equitable distribution state, meaning that marital property is divided in a way that is fair but not necessarily equal. In high-asset or high-net-worth divorces, accurate financial representation is crucial for equitable distribution, as well as for determining appropriate spousal and child support. Forensic accountants are hired to trace and identify hidden assets or financial discrepancies that could impact the division of assets and income assessments. They follow the money trail to provide the court with a clear picture of each spouse's financial situation. The use of forensic accountants in divorce proceedings is recognized by Nebraska courts, and their findings can be critical in ensuring that all assets are disclosed and that the division of property and determination of support payments are based on complete and accurate financial information.