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 Idaho, during divorce proceedings, the division of marital or community property, as well as determinations of spousal and child support, are influenced by the accurate accounting of assets and incomes. Idaho is a community property state, meaning that all property acquired during the marriage is presumed to be owned jointly by the spouses and should be divided equally upon divorce. If there is suspicion of financial manipulation or fraud, such as hidden assets or falsified financial documents, one or both spouses may engage a forensic accountant to conduct an investigation. This process, known as tracing or forensic accounting, involves meticulously tracking financial transactions to uncover any discrepancies that could affect the division of assets and calculation of support payments. The findings of a forensic accountant can be critical in ensuring an equitable division of property and fair support orders. The court relies on the presented evidence to make informed decisions, and any discovered financial misconduct may lead to legal consequences for the offending party. It's important to note that while forensic accountants provide valuable expertise in uncovering financial irregularities, their involvement must be disclosed to the court and their findings are subject to legal scrutiny.