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 Maryland, 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 invaluable when it comes to ensuring an equitable division of marital property and the accurate determination of spousal and child support payments. Maryland law requires the equitable distribution of marital property in a divorce, which means that assets and earnings accumulated during the marriage must be divided fairly, though not necessarily equally. A forensic accountant may be hired by either spouse to conduct financial tracing, which involves meticulously following the money trail to identify any hidden assets or discrepancies in financial documents. This process helps to provide the court with a clear and accurate picture of the couple's finances, which is essential for a fair resolution. The findings of a forensic accountant can significantly impact the outcome of property division, as well as the calculation of support payments. It's important to note that while forensic accountants provide critical financial analysis, the ultimate decisions regarding asset division and support are made by the court.