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 Kansas, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high assets or high net worth. Their expertise in uncovering financial fraud and manipulation is vital for ensuring an equitable division of marital property and the fair determination of spousal and child support payments. Kansas is an equitable distribution state, meaning that marital property is divided in a manner that is fair but not necessarily equal. Forensic accountants assist in this process by tracing and identifying assets and income that may be concealed or misrepresented. They analyze personal and business tax returns, bank and investment accounts, and other financial assets to provide a clear financial picture to the court. The findings of a forensic accountant can significantly influence the court's decisions regarding asset division and support obligations. It is important for parties in a divorce to disclose all assets truthfully, and the use of a forensic accountant can help ensure that all assets are accounted for and valued correctly. Attorneys often work closely with forensic accountants to present these findings as evidence in divorce proceedings.