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 Montana, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high assets or high net worth. These professionals are skilled in uncovering financial fraud and manipulation within various financial documents and assets. Their expertise is utilized to trace and track financial transactions back to their source, a process known as financial tracing or asset tracing. The goal is to ensure a fair and accurate assessment of marital or community property and income, which is essential for the equitable division of assets and determination of spousal and child support payments. Montana law requires the equitable distribution of marital assets during a 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 influence the court's decisions regarding asset division and support obligations by revealing any hidden assets or discrepancies in reported finances. It is not uncommon for one or both spouses to engage a forensic accountant to ensure transparency and fairness in the financial aspects of divorce proceedings.