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Ext. PublicationThe Role of Forensic Accountants in Divorce: Tracing and Following the Money
Forensics, Litigation & Valuation Services
Forensics, Litigation & Valuation Services
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In divorce proceedings, financial transparency is essential but often elusive. Assets and income may be obscured through complex financial structures, transfers between accounts or commingling of marital and nonmarital funds. For attorneys, unraveling these financial threads is critical to ensuring an equitable division of the marital estate and protecting their clients’ interests.
Following Complex Money Trails
Tracing the flow of money is one of the most technically demanding aspects of forensic accounting in family law. It requires not only a deep understanding of financial systems but also the ability to reconstruct historical transactions, identify patterns and interpret the intent behind financial behavior. This is especially important in high-net-worth divorces, cases involving closely held businesses or situations where one spouse holds greater financial control.
The Challenge of Commingled Funds
One of the most common challenges in tracing is commingling of funds, which is the mixing of marital and nonmarital funds in a single account or investment. This can occur when premarital assets are deposited into joint accounts or when marital income is used to pay for separate property. In such cases, forensic accountants must determine the source and application of funds, often using detailed transactional analysis and tracing methodologies recognized by courts.
Tracing Techniques in Practice
Courts and forensic professionals often rely on several established methods to separate financial sources:
- Direct tracing follows specific assets or funds from origin to current form.
- Community out first assumes marital funds are spent before separate funds.
- Pro rata tracing allocates expenditures proportionally between marital and separate sources.
These methods are applied based on the facts of the case, jurisdictional rules and available documentation. They provide attorneys with a defensible framework for understanding how assets were acquired, used or transformed.
Turning Analysis into Evidence
While tracing requires technical experience and insight, its ultimate purpose is clarity. Attorneys and courts need straightforward answers: what funds are marital, what funds are separate and how they can be fairly divided. Forensic accountants play a key role in distilling thousands of transactions into narratives, exhibits and summaries that reveal the financial truth in a way judges and juries can understand.
These professionals are known for their ability to simplify complex financial histories and present findings in a clear, credible manner. Reports are supported by documentation, visual exhibits and structured narratives that help attorneys build persuasive arguments. Whether the case involves hidden transfers, offshore accounts or equity-based compensation, an effective forensic accounting team delivers the clarity and precision needed to support legal strategy.
Weaver’s Perspective
At Weaver, our goal is not only to trace the money but to ensure findings are actionable and persuasive in the context of the case. Whether the matter involves high-net-worth estates, business interests or commingled property, our forensic teams deliver the insight attorneys need to pursue fair and equitable outcomes.
Contact us for support navigating even the most complex financial landscapes, ensuring that your clients receive a fair and informed resolution.
Authored by Logan Woods
©2025
The Role of Forensic Accountants in Divorce Series
This article is part of Weaver’s five-part series, The Role of Forensic Accountants in Divorce, which explores the many ways forensic analysis supports fair and equitable outcomes in marital dissolution cases.
