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 Nebraska, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or substantial marital assets. Nebraska is an equitable distribution state, meaning that marital property is not necessarily divided equally but rather in a manner that is fair and equitable. A forensic accountant's expertise in tracing and uncovering financial fraud or manipulation is invaluable in ensuring an accurate assessment of marital assets and liabilities. This financial investigation helps to reveal any hidden assets or discrepancies in financial reporting, which can significantly impact the division of property, as well as spousal and child support determinations. The use of forensic accountants is not mandated by law, but either spouse may choose to hire one to ensure a transparent and fair financial evaluation during the divorce proceedings. Their findings can be presented as evidence in court to assist in the resolution of financial disputes and to support claims of financial misconduct.