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 Mississippi, during divorce proceedings, particularly in cases involving high assets or significant property, financial manipulation or fraud can greatly impact the division of marital property, as well as spousal and child support determinations. Mississippi law requires an equitable distribution of marital assets, which means the court will divide property fairly, though not necessarily equally, based on several factors. If a spouse is suspected of hiding or misrepresenting assets, either party may employ a forensic accountant to uncover such discrepancies. A forensic accountant's role is to conduct a thorough investigation into personal and business finances, which includes examining tax returns, bank and investment accounts, and other assets to ensure a fair assessment of each party's financial standing. This process, known as financial tracing or forensic accounting, is crucial for revealing any hidden assets or financial manipulation that could otherwise lead to an unjust division of property and inaccurate calculation of support obligations. The findings of a forensic accountant can be used as evidence in court to argue for a fair settlement.