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 Mexico, forensic accounting plays a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or significant marital assets. State statutes and case law in New Mexico recognize the importance of accurate financial disclosure in divorce proceedings. Forensic accountants are hired to investigate and uncover any instances of financial fraud or manipulation, including hidden assets and income, which can affect the equitable division of marital property, as well as spousal and child support determinations. The state follows the principle of equitable distribution, meaning that marital property should be divided fairly, though not necessarily equally, between spouses upon divorce. The findings of a forensic accountant can be pivotal in ensuring that the division of assets and determination of support obligations are based on a complete and truthful financial picture. New Mexico law requires full financial disclosure from both parties in a divorce, and forensic accountants assist in verifying compliance with these legal requirements.