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, or asset tracing, and generally involves “following the money” by tracing a piece of financial information or data back to its source.

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 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.

In Delaware, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or substantial marital assets. Delaware follows the principle of equitable distribution of marital property, which means that marital assets and debts are divided in a manner that is fair but not necessarily equal. A forensic accountant's expertise in tracing and uncovering financial fraud or manipulation is invaluable in ensuring that all assets are properly disclosed and that the division of assets, as well as spousal and child support determinations, are based on accurate financial information. The forensic accountant's work can reveal hidden assets, underreported income, or overstated liabilities, which can significantly impact the financial outcomes of the divorce. The use of forensic accountants is not mandated by law, but attorneys often recommend their services to protect their client's interests and to present a clear financial picture to the court. It is important for parties in a divorce to disclose all assets truthfully, as failure to do so can result in legal consequences, including penalties and a potentially less favorable outcome in the division of assets.