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 West Virginia, during divorce proceedings, particularly in cases involving high assets or net worth, financial manipulation or fraud can significantly impact the division of marital property, as well as spousal and child support determinations. West Virginia follows the equitable distribution principle, meaning that marital property is divided in a manner that is fair but not necessarily equal. If one party is suspected of hiding or misrepresenting assets, a forensic accountant may be employed to conduct a thorough investigation. This expert will scrutinize various financial documents and assets, such as tax returns, bank and investment accounts, and tangible assets, to ensure a fair assessment of each party's financial standing. The process, known as financial tracing or forensic accounting, is crucial for uncovering any concealed or misrepresented assets. The findings of a forensic accountant can be pivotal in court decisions regarding the division of assets and the calculation of support obligations. It is important to note that any attempt to hide assets or commit fraud can result in legal consequences, including potential criminal charges and the imposition of sanctions by the court.