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What Is Forensic Accounting in a Divorce?
Divorce can bring out the worst in some people, especially when large amounts of money are involved. If you suspect your spouse is hiding assets or lying about their income, you need help from someone who knows how to follow the money. That is where forensic accounting comes in.
A forensic accountant is a financial professional who uses their skills to investigate money matters in legal cases. They combine accounting knowledge with detective work to uncover the truth about finances. In a divorce, these professionals review bank statements, tax returns, business records, and other documents to find inconsistencies or hidden assets. The word "forensic" means good for use in court, so forensic accountants can present their findings as evidence and give testimony about what they found.
When a couple divorces in Illinois in 2026, the law (750 ILCS 5/503) requires an "equitable division" of marital property. This means the court must divide assets fairly between both spouses. The court can only divide what it knows about, though. If one spouse hides money or property, the other spouse may not get their fair share. Forensic accountants make sure both parties are being honest about their financial situation. If you are facing a divorce with complex property, a forensic accountant and a St. Charles divorce attorney will be helpful for you.
How Can Forensic Accountants Find Hidden Assets?
Spouses who want to hide assets during divorce can be very creative. They might transfer money to family members, open secret bank accounts, or hide cash in safety deposit boxes. Some people underreport their business income or delay receiving bonuses until after the divorce is final. Others might overpay the IRS on purpose so they can get a refund later. If your spouse owns a business, they could pay fake employees, inflate expenses, or mix personal spending with business costs to make the company look less valuable than it really is.
Forensic accountants know these tricks. They trace where money goes by carefully reviewing years of financial records. Here are some common ways they find hidden assets:
Following the Paper Trail
Every financial transaction leaves a record. Forensic accountants look through bank statements for large withdrawals, transfers to unknown accounts, or payments to people you do not know. They review credit card statements to find purchases you were not aware of. Even if cash has been hidden in a safety deposit box, there may be a record of that money being withdrawn from a bank account.
Analyzing Tax Returns and Loan Applications
People sometimes tell different stories depending on who is asking. A spouse might report low income on their financial affidavit for divorce, but show high income on a loan application when they want to buy something expensive. Forensic accountants might compare these documents to spot contradictions.
Studying Lifestyle and Spending
If your spouse claims they only earn a certain amount each year but lives a more expensive lifestyle, that may be a clue that they are hiding assets. Forensic accountants look at how much money goes out compared to how much supposedly comes in. This is called a "lifestyle analysis."
Examining Business Records
For self-employed people or business owners, hiding income is easier. Forensic accountants review profit and loss statements, cash flow records, and business tax returns. They look for unusual patterns like sudden drops in income right before a divorce filing or payments to consultants who do not actually exist.
When Should You Hire a Forensic Accountant for Your Divorce?
Not every divorce needs a forensic accountant. These professionals charge high fees, so you need to consider whether the potential benefits are worth the cost. You should consider hiring a forensic accountant if your divorce involves any of these circumstances:
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Your spouse owns a business or has complex income sources.
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There are significant assets like investments, real estate, or retirement accounts.
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You suspect your spouse is hiding money or property.
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Your spouse has complete control over the family finances, and you do not know the full picture.
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There are unexplained changes in your financial situation, like sudden drops in income.
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Your spouse has made large purchases or transfers recently that you cannot explain.
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You notice your spouse taking unusual trips to places known for offshore banking.
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Financial documents show inconsistencies or do not match up.
Even if you are not positive your spouse is hiding anything, a forensic accountant can give you peace of mind. Sometimes just knowing that all assets have been properly accounted for can help you feel confident about your settlement.
What Happens After a Forensic Accountant Finds Hidden Assets?
If a forensic accountant discovers that your spouse hid assets during your divorce, the court has several options. Illinois law requires fair property division, and hiding assets violates this. The court might award you a larger share of the marital estate to make up for the hidden assets. Courts can also order the dishonest spouse to pay your attorney fees and the forensic accountant fees as a penalty for their misconduct.
If hidden assets are found after your divorce has already been finalized, you may still have legal options. Illinois law allows courts to reopen cases when fraud has occurred, but usually only within two years. You would need to file a motion asking the court to modify the property division based on the new information.
Forensic Accountants Can Help with Other Illinois Divorce Issues
Beyond finding hidden assets, forensic accountants can help with other important parts of divorce:
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Valuing businesses and other complex assets
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Calculating income for child support payments
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Reviewing "claims of dissipation," or when one spouse wastes money on things that did not benefit the marriage
Call a Kane County Divorce Lawyer Today
When large assets are part of your divorce, or you believe your spouse is hiding assets, you need an attorney who understands how to work with forensic accountants. At Shaw Sanders, P.C., we have the knowledge to handle complicated financial cases and protect your interests during property division.
Our head attorney is a trained mediator with significant experience in family law. We focus on mediation when possible to help families reach agreements outside of court, but we are willing to aggressively litigate cases if needed to protect your rights.
If you are concerned that your spouse may be hiding assets or you need help understanding your financial situation before divorce, contact our St. Charles divorce lawyer at 630-584-5550 for a free consultation.
630-584-5550