What to Expect When Hiring a Fraud Examiner for a Family Law Case

When a family law case involves unclear finances, hiring a forensic accountant, also known as a certified fraud examiner, gives your attorney clear, documented analysis of income, assets, and spending. The engagement is typically organized around specific questions, built on financial records, and delivered in a form that can be used in negotiations or court. Here’s what the process looks like from the attorney’s side of the table, so you know what to prepare for and what to expect.

When to Bring in a Fraud Examiner

Not every divorce needs one. Consider it when the financial picture doesn’t add up, such as:

• A lifestyle that doesn’t match reported income
• A cash-heavy or closely held business with unusual reporting
• Unexplained transfers, new accounts, or payments to friends and relatives
• Sudden or questionable debts, especially to related parties
• Delayed, incomplete, or inconsistent financial disclosures
• Signs that income or assets may be underreported or hidden

These are indicators, not conclusions. The point of an examination is to test the question with evidence instead of assumption.

What to Expect, Step by Step

1. Scoping the engagement

The process starts with your attorney defining the questions: What period matters? Which accounts and entities are involved? Are we looking at income, hidden assets, business finances, or a specific transaction? Retaining the examiner through counsel is common, and it keeps the work organized around the case strategy. A clear scope up front controls both time and cost.

2. Gathering documents

The examiner reviews financial records, typically bank and credit card statements, tax returns, business records, loan applications, and the parties’ disclosure documents. If key records are missing, the examiner can help identify what to request and from whom so your discovery requests target the right information.

3. Analysis

This is where the work happens. A fraud examiner reconstructs the financial picture by tracing the movement of money, comparing reported income with deposits and spending, reviewing cash flow, and flagging inconsistencies. The goal is to follow documented transactions, not to speculate.

4. Findings and reporting

Results are delivered in a clear, organized report with supporting documentation, built to hold up under scrutiny. Good reporting makes complicated financial activity easy for attorneys, mediators, and judges to follow, whether it’s used in settlement discussions or presented as evidence.

5. Testimony support

If the case goes to trial or requires a deposition, the examiner can explain the methodology and findings and respond to questions. Preparing for testimony early helps the analysis stay focused on what will be presented.

Documents That Help Most

Having these ready speeds up the process:

• Bank statements for all personal and business accounts
• Credit card statements
• Personal and business tax returns
• Profit and loss statements, balance sheets, and general ledgers
• Loan, mortgage, and credit applications
• Retirement, brokerage, and investment account statements
• Income and expense declarations and financial disclosures

Complete records make for better analysis. When records are incomplete, the examiner works with what’s available and documents the gaps.

Timeline and Cost Drivers

Every case is different, but a few factors drive the scope of the work:

• The number of accounts, entities, and years involved
• The quality and completeness of the records
• Whether a business is part of the picture
• How quickly the work is needed, such as ahead of mediation or a hearing
• Whether testimony will be required

Defining the scope early, and sending documents in an organized way, helps keep the engagement efficient.

What a Fraud Examiner Can’t Do

Setting expectations matters. A fraud examiner provides financial analysis, not legal advice, and doesn’t decide guilt or make legal conclusions. Findings depend on the records available, and an examination can’t promise a particular result. A credible examiner reports what the documents show, including when they don’t support the suspicion.

Why Early Involvement Helps

Bringing an examiner in early gives your attorney more options. It can shape discovery requests, identify what documents to pursue, and give you a clearer picture of the finances before settlement talks. Waiting until late in a case can limit the time available to follow up on what the analysis uncovers.

Working With Number Crunching, Inc.

Lisa Carroll, a Certified Fraud Examiner with more than 25 years of experience, provides court-ready fraud examination for divorce and family law cases, including work on hidden assets, underreported income, and financial manipulation. Based in Oceanside and serving attorneys and clients across San Diego County and Southern California, with remote services available nationwide, Number Crunching, Inc. gives you direct communication with the examiner handling your case, from the first document request to the final report.