Protecting Your Financial Future: Insights from Forensic Accountant, Tracy Coenen

In a revealing conversation with Tracy Coenen, a forensic accountant with over 25 years of experience, we explored the intricate world of financial fraud investigation, particularly in divorce cases. Her expertise in uncovering hidden money offers valuable lessons for anyone in a relationship, regardless of marital status or financial situation.

Tracy's journey into forensic accounting began unusually – with a dream of becoming a prison warden. Her criminology studies eventually led her to financial crime investigations, combining her love for solving mysteries (inspired by Encyclopedia Brown books) with accounting skills. Today, she investigates corporate fraud, high-net-worth divorces, and various financial "shenanigans" as she playfully calls them.

One of the most striking revelations from our conversation was how frequently financial information is kept from one partner in relationships. Tracy noted that by default, there's typically one person who handles money in marriages, and more often than not, it's the husband. This disparity creates vulnerability when divorce occurs, as the less-informed spouse (frequently women) finds themselves at a significant disadvantage when trying to secure their fair share.

The warning signs of potential financial deception are clear according to Tracy. The biggest red flag is when a spouse is unwilling to provide financial information or creates roadblocks when you ask questions. Their dismissive "don't worry, I've got it handled" response should immediately raise concerns. This reluctance rarely has innocent explanations – it typically indicates something is being hidden.

For those seeking more financial transparency with their partner without creating tension, Tracy suggests a non-confrontational approach. Rather than implying suspicion, frame your request around emergency preparedness: "I was thinking about what would happen if something happened to you. I want to be able to focus on you and our kids, not figuring out how to pay the mortgage." This approach makes the conversation about family security rather than trust issues.

Tracy emphasized the importance of evidence gathering if you suspect financial dishonesty. Start by downloading statements from all accounts you have legal access to and store them securely. Next, establish accounts in your own name to protect some money and available credit if needed. The goal isn't necessarily to prepare for divorce but to ensure your financial security regardless of what happens.

The conversation highlighted how divorce cases often reveal surprising financial behaviors. In high-net-worth divorces, forensic accountants like Tracy methodically trace transactions through bank statements, credit card records, and investment accounts. They look for transfers that might reveal hidden accounts, unusual spending patterns, or lifestyle expenditures that don't match reported income.

Perhaps most importantly, Tracy advocates for proactive financial planning in all relationships. Even happily married couples should have clear visibility into their finances, maintain some financial independence, and discuss money regularly. These conversations ideally start early in relationships – even first dates can include light money discussions to assess financial compatibility.

The work of forensic accountants extends beyond divorces. Tracy shared that she also investigates executives stealing from companies and defends people charged with white-collar crimes – ensuring they're held accountable for what they actually did, not exaggerated amounts. This criminal defense work particularly energizes her, as she believes everyone deserves accurate financial assessment in legal proceedings.

Whether you're happily married, considering divorce, or simply want better financial awareness, Tracy's insights offer valuable guidance. The key lessons are clear: maintain financial visibility, establish some financial independence, document important accounts, and communicate openly about money. These practices not only prepare you for unexpected life changes but also strengthen your financial foundation in any relationship situation.