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 North Dakota, during divorce proceedings, the equitable distribution of marital property is a key concern, particularly in high-asset divorces. State law requires a fair division of marital assets, which includes all property acquired during the marriage, regardless of whose name is on the title. If there is suspicion of financial manipulation or hidden assets, one or both parties may employ a forensic accountant to uncover any discrepancies. Forensic accountants specialize in identifying financial fraud and can trace and analyze various types of assets and financial records to ensure an accurate representation of each spouse's financial situation. This process is crucial for determining the proper division of assets and for calculating spousal and child support. The findings of a forensic accountant can significantly impact the financial outcomes of a divorce. North Dakota courts rely on complete financial disclosure to make informed decisions regarding asset division and support payments, and any discovered financial manipulation can lead to legal consequences for the offending party.