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 Jersey, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. These specialized accountants are tasked with uncovering financial discrepancies, hidden assets, and evidence of fraud or manipulation within personal and business financial documents. Their expertise in tracing and asset tracking helps ensure that all marital property is accurately accounted for during the division process. New Jersey operates under an 'equitable distribution' model, which means that marital assets are divided in a manner that is fair but not necessarily equal. The findings of a forensic accountant can significantly influence the determination of what is considered fair, impacting the division of assets, as well as spousal and child support calculations. The use of forensic accounting in divorce litigation is recognized and can be a critical factor in protecting the financial interests of both parties and ensuring a just resolution.