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 Rhode Island, forensic accountants play a crucial role in divorce litigation, particularly in cases involving high-net-worth individuals or substantial marital assets. These professionals are skilled in uncovering financial fraud and manipulation across a variety of assets and financial documents. Their expertise in financial tracing allows them to track the origins of transactions and assets, which is essential in ensuring an equitable division of marital property and the accurate determination of spousal and child support obligations. Rhode Island law requires an equitable distribution of marital assets during a divorce, which means that all assets and incomes must be disclosed fully and accurately. A forensic accountant may be hired by either spouse to investigate and reveal any hidden assets or financial discrepancies that could impact the division of property and support calculations. The findings of a forensic accountant can be used as evidence in court to argue for a fair settlement. It's important to note that while forensic accountants can provide valuable insights, their involvement and the admissibility of their findings in court proceedings are subject to Rhode Island's rules of evidence and procedure.