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 Maine, during divorce proceedings, financial transparency is crucial, particularly in high-asset or high-net-worth cases. Maine follows the principles of equitable distribution, meaning that marital property is divided in a manner that is fair but not necessarily equal. If a spouse is suspected of hiding assets or engaging in financial manipulation, a forensic accountant may be employed to uncover such activities. This specialist conducts a thorough investigation into various financial holdings and transactions, including but not limited to tax returns, bank and investment accounts, and tangible assets like real estate and luxury items. The forensic accountant's role is to trace and document the origins and movements of funds and assets to ensure an accurate representation of each spouse's financial standing. This process is essential for determining the equitable division of assets, as well as for calculating appropriate spousal and child support payments. The findings of a forensic accountant can significantly impact the financial outcomes of a divorce, and Maine courts rely on accurate financial disclosures to make informed decisions regarding asset division and support obligations.