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 Kentucky, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high assets or high net worth. Kentucky is an equitable distribution state, meaning that marital property is not automatically split 50/50 but rather divided in a manner that is deemed fair by the court. A forensic accountant's expertise in uncovering financial fraud and tracing assets is invaluable in ensuring an accurate assessment of marital property and individual income. This assessment is essential for determining the equitable division of assets, as well as for calculating appropriate spousal support and child support payments. The services of a forensic accountant can be employed by either spouse to identify hidden assets or financial discrepancies that could impact the financial outcomes of the divorce. The findings of a forensic accountant can be presented as evidence in court to support a party's case regarding the true extent of the marital estate and proper financial obligations.