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 Ohio, during divorce proceedings, the equitable distribution of marital assets is a key component, particularly in high-asset or high-net-worth cases. Ohio law requires a fair division of marital property, which includes assets and debts acquired during the marriage. If there is suspicion of financial manipulation or fraud, such as hiding or undervaluing assets, one or both spouses may employ a forensic accountant to conduct a thorough investigation. This process, known as tracing or forensic accounting, aims to uncover any concealed or misrepresented assets to ensure an accurate assessment of the marital estate. The findings of a forensic accountant can significantly impact the division of property, as well as spousal and child support determinations, by providing the court with a clear financial picture. It is important to note that in Ohio, any non-marital property, such as assets acquired before the marriage or by inheritance, is generally not subject to division unless commingled with marital assets. Forensic accounting can also assist in distinguishing between marital and non-marital property. Attorneys often work closely with forensic accountants in these cases to protect their clients' interests and to advocate for an equitable resolution based on the financial facts presented.