Forensic Accounting in Divorce

Financial analysis when income, assets, or disclosures don’t make sense.
Nationwide. Virtual appointments available.

Common Financial Red Flags in Divorce

  • Reported income doesn’t support the household’s historical lifestyle

  • Sudden drops in income shortly before separation

  • ATM withdrawals without explanation

  • Incomplete or inconsistent bank or credit card records

  • Transfers between personal and business accounts

  • Assets held in only one spouse’s name without explanation

  • A spouse who controls all financial access

When to Involve a Forensic Accountant

Early involvement means stronger evidence, better strategy, and fewer surprises. The scope and cost of forensic accounting vary by record volume, complexity, and whether expert testimony is required, not every divorce requires a full forensic investigation. Getting a CPA involved earlier can:

  • Preserve financial records before accounts are closed, altered, or consolidated

  • Identify which transactions, accounts, or entities actually warrant closer review

  • Distinguish routine financial activity from patterns that raise legitimate concern

  • Reduce unnecessary discovery by focusing analysis on relevant financial issues

  • Support informed strategy decisions before deadlines and save costs

Even post-divorce, a forensic review may be needed to enforce support or property division orders.

Sample Scenarios

  • The wife claims a sudden drop in income but continues a high-end lifestyle.

  • Marital funds are used to purchase assets titled only in one spouse’s name.

  • A wife provides incomplete bank records with pages missing or transactions blacked out.

  • A husband withdraws large sums of cash and claims it was spent on “bills”

  • Transfers appear between business and personal accounts right before filing

Divorce Forensic Accounting FAQs

When should a forensic accountant be involved in a divorce?

1

A forensic accountant is often most effective when involved early, before financial records are incomplete, accounts are closed, or financial positions become fixed.


Do all divorces require forensic accounting?

2

No. Many divorces can be resolved using standard financial disclosures. Forensic accounting is typically used when records are inconsistent or financial activity cannot be explained through routine review.


Does early involvement increase the cost of forensic accounting?

3

Not necessarily. Early involvement often helps narrow the scope of analysis and avoid unnecessary discovery or investigation. Visit the Fees page to learn more about the costs.


Does a forensic accountant replace an attorney or financial advisor?

4

No. A forensic accountant works alongside legal counsel to analyze financial records and provide objective financial findings.

Not every divorce requires forensic accounting.

In some cases, standard financial disclosures are sufficient, and additional analysis may not be cost-effective. Forensic accounting becomes valuable when records are incomplete, financial behavior changes unexpectedly, or the numbers don’t reconcile despite reasonable explanations.

Forensic Accounting
Services for Divorces

Divorce brings more than emotional upheaval — it often exposes financial uncertainty. When questions arise about income, assets, or spending patterns, forensic accounting provides a factual foundation for fair and informed outcomes.

Asset Identification & Tracing

  • Identification of marital versus separate property

  • Analysis of retirement accounts, investments, and real estate holdings

  • Tracing financial transfers or title changes leading up to divorce

  • Review of account statements and financial disclosures for inconsistencies

Income & Lifestyle Analysis

  • Comparison of reported income to actual deposits and spending

  • Identification of irregularities that may indicate underreported income

  • Documentation of historical lifestyle and spending habits

  • Support for spousal and child support determinations based on actual financial behavior


Services Available Nationwide
Consultation by Phone or Virtually

Evaluations to Learn if Potential Problems Exist

High-level look at records for signs of unusual activity or missing funds

Examination of bank and credit card transactions for patterns inconsistent with disclosures

Assessment of financial documents for potential concealment or misrepresentation

Follow-the-money tracing to provide context for unexplained movement of funds

Why Attorneys Bring in a Divorce Forensic CPA

  • Financial affidavits don’t match the records

  • One-sided control over money raises questions

  • Suspicions of manipulation, delay, or deception

  • Accurate financials can change the outcome

Carla Blake, CPA, CFE Forensic Accountant for Divorces

“I’ve worked hundreds of cases inside the IRS. I now help attorneys and their clients on high-stakes divorces.”

Carla Blake, CPA, CFE