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 or secreted 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.

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 Connecticut, during divorce proceedings, particularly in cases involving high assets or net worth, financial manipulation or fraud can significantly impact the division of marital property, as well as spousal and child support determinations. Connecticut is an 'equitable distribution' state, meaning that marital property is divided in a way that is fair but not necessarily equal. If one party is suspected of hiding or manipulating financial assets, a forensic accountant may be employed to conduct a thorough investigation. This process, known as financial tracing or forensic accounting, involves examining various financial documents and assets, including tax returns, bank and investment accounts, retirement and broker accounts, and tangible assets like jewelry, art, and real estate, to ensure an accurate assessment of the marital estate. The findings of a forensic accountant can be crucial in court to ensure that all assets are disclosed and equitably divided. The use of forensic accountants in divorce litigation is permissible and can be a critical tool for attorneys to protect their clients' interests and to present a clear financial picture to the court.