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 Vermont, as in many states, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. Vermont's legal framework allows for the use of forensic accountants to uncover financial discrepancies and ensure an equitable division of marital assets. The state follows the principle of equitable distribution, meaning that marital property is divided in a manner that is fair but not necessarily equal. A forensic accountant's expertise in tracing and identifying hidden assets, income discrepancies, and financial fraud is instrumental in providing the court with a clear financial picture. This can impact the division of assets, as well as the determination of spousal and child support. The findings of a forensic accountant can be presented as evidence in court to support a party's claims regarding the true extent of marital assets and liabilities. It is important for parties in a divorce to disclose all assets truthfully, and the involvement of a forensic accountant can help ensure transparency and fairness in the financial aspects of the divorce process.