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 North Dakota, forensic accountants play a crucial role in divorce proceedings, particularly in cases involving high-net-worth individuals or complex asset portfolios. State statutes and case law in North Dakota recognize the importance of accurate financial representation in the division of marital property and the determination of spousal and child support. Forensic accountants are hired to conduct financial investigations, often referred to as financial tracing or asset tracing, to uncover any hidden assets or financial fraud. Their expertise helps ensure that all marital assets are properly accounted for and equitably divided according to North Dakota Century Code (NDCC) Section 14-05-24, which governs the distribution of property upon divorce. The findings of a forensic accountant can significantly impact the court's decisions regarding asset division and support payments. It is important to note that while forensic accountants provide valuable financial insights, their involvement and the admissibility of their findings in court proceedings are subject to the North Dakota Rules of Evidence.