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 Minnesota, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. These specialized accountants are tasked with uncovering financial discrepancies, hidden assets, and evidence of fraud or manipulation within personal and business financial documents. Their expertise in financial tracing allows them to follow the money trail and provide a clear picture of a couple's financial situation. Minnesota law requires an equitable division of marital property in divorce, which means that all assets and debts acquired during the marriage must be divided fairly, though not necessarily equally. A forensic accountant's findings can significantly impact the division of marital property, as well as the determination of spousal and child support payments. By revealing any concealed assets or income, forensic accountants help ensure that the court has a complete and accurate understanding of the couple's finances, allowing for a fair resolution in the division of assets and support obligations.