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 Louisiana, divorce proceedings follow the principles of community property law, which means that any assets acquired during the marriage are considered jointly owned and are subject to division upon divorce. When there are substantial assets involved, it's not uncommon for one or both spouses to engage a forensic accountant to ensure a fair and accurate assessment of the marital estate. Forensic accountants specialize in uncovering financial discrepancies, hidden assets, and fraud. They trace and analyze financial data to provide the court with a clear picture of the couple's financial situation. This process is crucial in determining the division of assets, as well as calculating spousal and child support. If financial manipulation or fraud is discovered, it can significantly impact the division of property and support obligations. Louisiana courts rely on the accurate representation of assets and income to enforce equitable division and support orders, and forensic accounting plays a key role in high-asset or complex divorce cases to ensure that all assets are properly accounted for.