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 Montana, during divorce proceedings, financial transparency is crucial, particularly in high-asset or high-net-worth cases. Montana law requires equitable distribution of marital assets, which means the court will divide property fairly, though not necessarily equally, between spouses. If there is financial manipulation or fraud, it can significantly impact the division of assets and the determination of spousal and child support. To uncover any hidden assets or financial discrepancies, one or both spouses may employ a forensic accountant. These professionals specialize in identifying irregularities in various financial documents and assets, including tax returns, bank and investment accounts, and tangible assets like real estate and luxury items. The process, known as financial tracing or forensic accounting, is a methodical examination of financial records to locate the origin of specific funds or assets. This ensures that all marital property is accounted for accurately in the divorce settlement. Montana courts rely on the findings of forensic accountants to make informed decisions regarding asset division and support obligations.