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 New Hampshire, forensic accounting is a specialized field where accountants use their expertise to uncover financial fraud and manipulation within various financial domains, including tax returns, bank and investment accounts, and tangible and intangible assets. This practice is crucial in divorce litigation, particularly in cases involving high-net-worth individuals or substantial marital assets. New Hampshire is an 'equitable distribution' state, meaning that marital property is divided in a manner that is fair but not necessarily equal. Accurate financial representation is essential for equitable distribution, spousal support, and child support determinations. Forensic accountants are often engaged in these cases to trace and identify hidden assets or financial discrepancies. Their findings can significantly influence the court's decisions regarding the division of assets and calculation of support payments. The use of forensic accountants in divorce proceedings is a recognized and valuable tool to ensure that all parties have a transparent and fair resolution based on the true financial picture.