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 Kansas, during divorce proceedings, the equitable distribution of marital assets is a key concern, particularly in high-asset divorces. Kansas is not a community property state; instead, it follows the principles of equitable distribution, meaning that marital property is divided in a manner that the court deems fair, which may not always be equal. Financial manipulation or fraud can significantly impact the division of assets, as well as spousal and child support determinations. To ensure a fair division, one or both spouses may engage a forensic accountant to uncover any concealed assets or financial discrepancies. Forensic accountants specialize in identifying irregularities in various financial domains, including personal and business finances. Their expertise in tracing or asset tracing is crucial in providing the court with an accurate representation of each spouse's financial situation. The findings of a forensic accountant can influence the court's decisions regarding asset division and support payments. It is important for parties in a divorce to disclose all assets truthfully, as failure to do so can result in legal consequences, including penalties or an unfavorable division of assets.