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 New Hampshire, during divorce proceedings, particularly in cases involving high assets or substantial wealth, the accurate assessment of marital property is crucial for equitable division, as well as for determining appropriate spousal and child support payments. Financial manipulation or fraud can significantly impact these determinations. To uncover any hidden assets or financial discrepancies, one or both spouses may engage a forensic accountant. These professionals specialize in identifying irregularities in various financial records, 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 approach to track financial transactions back to their origins, ensuring that all marital assets are accounted for in the divorce settlement. New Hampshire law requires full financial disclosure in divorce cases, and the discovery of hidden assets or fraud can lead to adjustments in the division of property and support obligations. It's important to note that New Hampshire is an 'equitable distribution' state, meaning that marital property is divided in a manner that is fair but not necessarily equal, and the findings of a forensic accountant can heavily influence what is considered 'fair' in these terms.