What Does a Forensic Accountant Do in Divorce?

Divorce is one of the most difficult and most complicated times in the life of any person. No matter the circumstances, it will almost certainly be highly stressful for every party involved — including both spouses, and even their legal teams. 

This is never more true than during non-cooperative divorce proceedings. In the event that either, or one of the divorcing parties is not willing to play ball with the other, and is dragging their heels, making unreasonable demands, or is attempting to hide anything from the other party, it is crucial that the issue be resolved as soon as possible. 

It is vital in divorce that everything is considered, no stone is left unturned, and every base is covered. This need for certainty and precision can be highly difficult, no matter how experienced the lawyers on the case are. 

In a circumstance such as this, perhaps the wisest thing to do would be for either or both parties to consider instructing an independent expert, a forensic accountant to enter into the situation and provide specialist assistance.

Forensic accountants are regularly instructed to assist in divorce proceedings, particularly highly complicated ones, but why? Exactly what does a forensic accountant do in divorce proceedings? 

In this guide I explain what a forensic accountant does, how I can help with a divorce however complicated, why you might need one, how much you can expect to pay, and more.

Forensic Accounting Definition 

Forensic accounting is the process of conducting a thorough examination into the finances of a person or business. Unlike a standard investigation, a forensic accountant will utilise a wide range of skills — including auditing, accounting, and investigation skills to look beyond the numbers and come to the best solution for all parties.

Forensic accounting is common with any issues that are likely to be brought before a court. This is because part of the skillset of a forensic accountant is to be able to present sometimes complicated findings in the most simple and widely understandable format possible — vital in a court case.

The primary uses of a forensic accountant come in supporting a litigation or investigation. These attributes are perfectly suited to assisting in resolving any disputes, ideally before court is necessary, and can be invaluable in all manner of investigations into issues such as fraud or theft.

A forensic accountant has all the skills required to provide expert evidence regarding the financial aspects of any case. I am instructed in a variety of different legal proceedings involving but not limited to any of the following:

• Commercial Disputes  
• Financial Fraud Defence
• Fraud Investigation
• Business Interruption Claims 
• Forensic Insolvency 
• Personal Injury Claims 
• Proceeds of Crime Act (POCA) Confiscations

It is extremely common for a forensic accountant to be instructed during a divorce. During such complicated proceedings, honesty is key. As a forensic accountant, I have the skills necessary to enter the situation, assess each and every aspect, and ensure that both sides are acting appropriately.

 

How Forensic Accounting Helps with Divorce

As a forensic accountant, I often have a key role in divorce proceedings. I can act on behalf of either a singular entity, or as a single joint expert (SJE), representing both sides. It is common for a forensic accountant to be instructed to carry out an in-depth investigation into the proceedings. In divorce, honesty is key, and my role is to ensure transparency throughout.

When any marriage breaks down, it is always preferred for a mutually agreed and beneficial settlement to be agreed rather than for the courts to be required. However, unfortunately, this is not always possible and a forensic accountant is needed. 

It is increasingly common that during proceedings, the division of assets comes up time and time again as an issue. If the divorce is not wholly amicable on both sides, then it is possible for tensions to rise — when one or either party feels particularly upset or aggrieved, then they will often be less likely to totally cooperate. 

Additionally, it is not uncommon for one spouse to be responsible for the primary management of both parties’ finances. In this common scenario, should the couple divorce, then one party holds a significant advantage over the other due to having a more clear understanding over how much and where all their shared funds are. 

I can guarantee total and assured financial transparency in your divorce by investigating both parties’ finances — with the explicit aim of identifying, should any exist, financial irregularities and discrepancies.

Ultimately, I help with your divorce proceedings by ensuring that everything goes through as efficiently and transparently as possible. Although I’m instructed by the parties involved in the divorce, my responsibility, in the end, lies with the courts. This means that I demonstrate independence at all times and act as an outside expert seeking to do the correct thing in the eyes of the law.

 

What Does a Forensic Accountant Do in Divorce?

Since finances are one of the most common points of contention in any divorce proceedings, the expertise that a forensic accountant can bring will be invaluable in ensuring everything goes smoothly. Forensic accounting assists with asset and business valuation, asset tracing, assessing tax implications and much more besides.

The role of a forensic accountant in divorce will cover all bases to make sure that the best, most honest outcome is guaranteed. My duties include:

Ensuring Smoothness Throughout 

The divorce process is highly complicated and can come with all manner of potential stumbling blocks waiting to trip you up if you are not careful. 

Add in the fact that divorce is one of the most stressful things a person can go through, unnecessarily stretching it out due to poor planning, badly filed paperwork, etc. will do nothing but pile additional stresses (both emotional and financial) onto the situation. 

Instructing a dedicated forensic accountant to oversee the proceedings early can be key in ensuring that everything goes as smoothly as possible, to help you avoid all the possible stumbling blocks to ensure the process is as efficient, fair, and cost effective as possible. 

Asset Valuation 

In order to ensure that the distribution of assets is fair for both parties, all assets on both sides will need to be evaluated during the proceedings — this includes property, investments, and even things like businesses. 

The role of a forensic accountant during asset valuation is to ensure that the value of your assets is as accurate as is possible. 

Business Valuation

Working out a fair valuation for a high-value asset like a business that both parties can agree with is one of the most difficult jobs a forensic accountant can be faced with.

Valuing a business, particularly during a high-stress situation like a divorce, is a highly complex and intricate process, one that requires a great deal of precision and accuracy.

There are multiple methods of valuing a business during a divorce, including:

• Valuation based on assets 
• Considering data like cash flow, gross income, history of debt, etc. 
• Sale price of similarly positioned companies within the industry 
• Projections of future earnings 

Additionally, a forensic accountant can also be on hand to provide expert guidance should a business valuation ever be disputed for any reason. I can advise you on the key next steps to make to ensure you ultimately get the best, fairest result.

 

Asset Tracing

An unfortunate reality of divorce is that sometimes — particularly during a particularly acrimonious breakup — a spouse may make the decision to conceal some assets. Ultimately, hidden assets cannot be shared fairly. Tracing hidden assets stands out as a speciality of a forensic accountant.

Where assets have been moved offshore, this can extend to tracing funds across international accounts and jurisdictions.

There are often three main ways of tracing hidden assets. These are:

Identifying Net Worth

Forensic accountants will analyse information and statistics from financial documents and banks to get a clear picture of their financial situation. They will particularly look at how much the person was worth before the divorce proceedings began and compare it to how much they say they are worth now. If something seems awry with the results, it could be a clear indication that the individual is trying to conceal their assets.

Analysing Deposits

Another way to identify whether assets are being hidden is by looking at the net deposits made by an individual and adding it to any payments they have made. Transactions between known and declared sources are then discounted from the investigation. Anything left over is then pursued further to find out where the money went.

Understanding the Parties’ Funds

The final way a forensic accountant can identify hidden assets is by taking a deep dive into both parties’ funds, to determine whether any money has been spent that hadn’t been declared previously. This is done by analysing bank statements and other financial data. 

Common methods of concealing assets include transferring them to a secret account, giving them to friends/family temporarily, exaggerating liabilities, shell companies can be created with the purpose of storing and using funds during the divorce, and more.  

Increasingly, spouses also conceal wealth in cryptocurrency and other digital assets, which bring their own tracing and valuation challenges.

The most effective way of uncovering hidden assets is to investigate the suspicious party — examine their tax returns, assess their spending patterns, their correspondence, etc. in order to attempt to uncover any potential discrepancies between what they are reporting and reality. 

If you believe that your spouse may be hiding assets/funds from you, it is vital that you contact a forensic accountant as soon as possible. It can be incredibly difficult to evenly split assets late in the proceedings, even if the dishonesty comes to light. The earlier you find the discrepancy the better odds of fair distribution. 

Childcare Considerations 

It is a sad reality of divorce that often, there is a child stuck in the middle, further complicating the situation. Unfortunately, it is not wholly uncommon that when deciding on the future care of the shared child, for the parent with the higher income to underreport their income. This is done to attempt to minimise their future child support payments. 

Forensic accountancy services can be ideal in helping to determine both parties actual income, including any possible hidden assets, to ensure that spousal/child support payments may be calculated properly and all children stuck in the middle of difficult positions will be properly taken care of no matter what. 

Identify Joint Assets and Liabilities

During a marriage, it is widely common for one person to handle the finances, while the other party is responsible for other day-to-day activities. While this sharing of duties may be ideal during marriage, it can make the process of a divorce highly complicated. 

If the party responsible for the finances is aware that divorce could be imminent, or if they are the one wishing to divorce, they may use their role to benefit themselves by hiding assets to gain a more favourable settlement for themselves. 

I can examine all shared assets and liabilities to make sure that all affairs are in order and as they should be.

Tax Implications

Something that some couples may not totally consider when considering a divorce is the impact tax can have on shared finances during the division of funds/assets.

Poor financial planning can lead to huge sums of money ending up in the hands of HMRC. A forensic accountant has all the expertise needed to allow you to prepare, and minimise the implications tax will have on your transfer of assets.

Capital Gains Tax is potentially the most impactful form of taxation to plan around. Since April 2025, separating spouses and civil partners can transfer assets between themselves on a ‘no gain, no loss’ basis up until the earlier of three tax years after the year they stop living together, or the date the court grants the divorce — and transfers made under a formal divorce agreement or court order carry no time limit at all. Timing still matters, though, and careful planning ensures neither party is caught by an unexpected charge.

Expert Witnesses 

Should the circumstances of the divorce ever reach the point where a court date is required, a forensic accountant will also be able to act as an expert witness. 

Presenting findings in a court of law is a common duty for a forensic accountant due to the excellent ability to get points across to the courtroom, judge, and the jury as clearly as possible — presenting it in a format that anybody can understand.

A forensic accountant expert witness can act to ensure that the best and fairest possible outcome for both parties is reached.

One procedural point worth clarifying at the outset: once I have produced my report under a given instruction, it is not possible to raise new questions as part of that same instruction, so it is essential to agree the exact scope of the investigation beforehand. It is also worth noting that where I have been engaged as an advisor to one party, I may not subsequently be able to act as an independent expert in the same matter — the two roles carry different duties.

Why Do You Need a Forensic Accountant for Divorce?

As mentioned above, a forensic accountant is vital in a divorce whenever there is any suspected foul play going on from either party — particularly if one party thinks the other is hiding assets. However, there are other important reasons instructing a forensic accountant to assist in your divorce is a good idea besides just to locate hidden funds. 

I can also assist with:

• High-value divorces/divorces with lots of assets 
• Financially complex proceedings 
• Any conflicts (over division of funds, regarding property etc.)
• Cases where either party owns a business individually 
• Cases where you co-own a company together

Additionally, divorce proceedings will be littered with all manner of different complicated and word-heavy documents that can take hours and days to review. These documents can be vital in revealing key information to ensure parity throughout the process. 

A forensic accountant relishes the combing over and analysis of such vital documents. A huge part of the forensic accounting job is looking over paperwork like tax returns, financial and bank statements, sales invoices, financial projections, mortgage applications and documentations, and more. 

Put simply, the main reason you need a forensic accountant is to ensure total parity and transparency between both sides of the table throughout proceedings. From hidden assets to working out child support and beyond, a forensic accountant can be key to saving you money, time, and a great deal of stress. 

Do Both Parties Need a Forensic Accountant?

It is a common misconception that both parties need their own individual forensic accountants. It is possible, particularly in the more mutual scenarios, for a forensic accountant to act as Single Joint Expert (SJE). A SJE will benefit both parties in divorce proceedings and ensure a more co-operative, and hopefully smoother process.

However, for less co-operative, more acrimonious circumstances, either or both sides may see fit to instruct a forensic accountant of their own to act as a party-appointed adviser or expert witness.

Can I Instruct a Forensic Accountant Once a Divorce is Finalised?

It is possible to seek the assistance of a forensic accountant after the final distribution of assets has taken place. For example, evidence may come to light after the divorce has been settled that one party has concealed some assets or they were not completely honest about the true value of their business interests. 

Should this situation arise, I can perform an investigation to see if any more money can be claimed. However, this is likely to be extremely time-consuming and be met with great resistance by the opposing party. As a result, it is always best to contact a forensic accountant at your earliest opportunity so you can have complete peace of mind.

Beyond Divorce: Probate and Trust Disputes

Divorce is not the only family matter where forensic accounting is valuable. Probate disputes often involve wills, estates, guardianships, trusts, and powers of attorney — arrangements where one individual exercises considerable control over what can be significant assets, and holds a fiduciary duty to act in good faith and in the beneficiaries’ best interests.

Where beneficiaries suspect that the assets of a trust or estate are being mismanaged or misappropriated, I can analyse the administration of the trust or estate, account for the assets, and identify any suspicious transactions. This involves reviewing documentation, examining financial records, and, where appropriate, conducting interviews. Just as in divorce work, the aim is to establish the financial truth clearly enough that a dispute can, wherever possible, be resolved before litigation becomes necessary.

How Much Does a Forensic Accountant Cost for Divorce?

Ultimately, the price of instructing a forensic accountant to assist with your divorce will depend on a variety of different factors. For example, the timing that you bring the accountant in will naturally impact the price, likewise the experience, and level of service will also have a knock-on effect to the overall cost involved. 

Additionally, should the forensic accountant be acting on behalf of both parties as a single joint expert then the cost will be split. In the end though, a high quality, experienced forensic accountant should be more than capable of adapting their service to suit the needs and requirements of their clients. 

For additional information on the cost of instructing a forensic accountant, it would be wise to get in touch as soon as possible. I put my clients at the forefront of everything I do. You can rest assured that I would never inflate the price of my services. I simply want what is best for you, and that is reflected in my pricing and what I offer.

Tax Implications and Capital Gains Tax

Something couples may not fully consider is the impact tax can have on shared finances during the division of funds and assets. Poor financial planning can lead to significant sums ending up with HMRC, and I have the expertise to help you prepare and minimise the tax implications of transferring assets.

Capital Gains Tax is potentially the most impactful form of taxation to plan around. Since April 2025, separating spouses and civil partners can transfer assets between themselves on a ‘no gain, no loss’ basis up until the earlier of three tax years after the year they stop living together, or the date the court grants the divorce. Transfers made under a formal divorce agreement or court order carry no time limit at all. Timing still matters, though, and careful planning ensures neither party is caught by an unexpected charge.

 

How Inquesta Forensic Can Help with Divorce Proceedings

As a forensic divorce accountant, I am on hand to assist in your divorce proceedings — ensuring that everything goes as smoothly, as stress-free, and as efficiently as possible.

I am equally as adept at tracing assets as I am at working alongside your legal team. I can locate, identify, and assess any hidden assets or income that the other party has neglected to disclose during the proceedings for any reason.

I can also guide you towards a fair conclusion to any dispute that may arise from issues stemming from business valuation, childcare support, and more.

I am available to be instructed to your case — either as a single joint expert assisting both parties, as a party-appointed expert, or as an expert witness during a court case. I promise to leave no stone unturned during my investigation in pursuit of the best conclusion possible, and I am as committed to achieving the right result as I am to providing the best possible service.

I have considerable experience acting as an expert witness in court. In that role, my overriding duty is to the court — presenting clear, independent findings that judges and legal teams can rely upon, whatever they may show.

Whatever your issue — from divorce and matrimonial disputes to fraud and financial losses — I am here to assist. Contact me today to find out more about how I can help.

Call 0161 243 0595 or email info@inquestaforensic.co.uk to discuss your case.