Forensic accountants are specially trained and highly experienced in investigating and analysing financial information in a divorce to identify a couple’s true financial position. In doing so, they often help divorcing spouses, solicitors, and the court to understand complex or disputed finances before a financial settlement is agreed or determined.
When do you need a forensic accountant in divorce?
The expertise of a forensic accountant is not normally needed if the finances are straightforward, financial disclosure is complete, asset values are agreed, and there is no evidence of hidden assets, complex business interests, or unclear income.
A forensic accountant may be considered if finances are too complex to assess using standard financial disclosure alone, or where there are concerns that the information provided is inaccurate. You may need the involvement of a forensic accountant if:
- You suspect your spouse is hiding assets or income – for example, if there are unexplained gaps in bank statements, undisclosed accounts, or transfers to third parties
- One or both spouses own a business or are self-employed – business accounts can be complex to interpret, and profits, dividends, or drawings may not clearly reflect the true financial benefit available to that spouse
- The value of assets is disputed – for example, disagreement over the value of a business, property, or investment portfolio, and
- The divorce involves complex assets – such as multiple properties, offshore holdings, trusts, cryptocurrency, or share options, which require specialist analysis to value and trace
How can a forensic accountant help in divorce?
A forensic accountant can help in divorce by providing independent analysis of complex or disputed financial information. This helps the parties and, where needed, the court, to better understand the couple’s financial position before a financial settlement is agreed or determined.
A forensic accountant can:
- Identify gaps or inconsistencies in the financial disclosure
- Identify missing financial information or documents
- Trace the movement of money and assets
- Value business interests or other complex assets
- Assess a spouse’s true income and available financial resources
- Highlight issues that may require further financial disclosure or explanation
- Prepare independent financial analysis or expert reports that may assist negotiations, mediation, or court proceedings, and
- Trace assets transferred overseas
Can a forensic accountant’s report be used in court?
A forensic accountant’s report can be used in court, but not automatically. In financial remedy proceedings in England and Wales, a forensic accountant’s report can only be relied on as expert evidence if the court gives permission. The court will only allow expert evidence if it believes that it is necessary to help resolve the issues in the case.
If expert forensic accountant evidence is allowed, the court will usually prefer the parties to instruct a Single Joint Expert (SJE) rather than each appointing their own forensic accountant. The expert’s report can then be used as evidence to help the court understand complex financial issues, such as:
- The value of a business
- A spouse’s true income, or
- Whether assets have been hidden or transferred.
If a forensic accountant identifies concerns about a party’s financial disclosure, they will set out their findings in an expert report, along with the financial evidence they have reviewed. This does not determine the outcome of the case. The judge considers the report alongside all the other evidence and decides what weight to give it when reaching a fair financial settlement.
