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 Indiana, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. Indiana follows the 'equitable distribution' model for dividing marital property, which means the court divides assets in a manner it deems fair, though not necessarily equal. A forensic accountant's expertise in uncovering financial fraud and tracing assets is invaluable in ensuring an accurate assessment of the marital estate. This includes the identification of hidden assets, undisclosed income, and any financial manipulation that could impact the division of property, as well as spousal and child support determinations. The findings of a forensic accountant can be presented as evidence in court to assist in achieving an equitable settlement. It's important to note that while forensic accountants can provide critical financial insights, the ultimate decisions regarding asset division and support obligations rest with the court, which will consider the forensic accountant's findings along with all other relevant information.