Deposition preparation in a divorce or marital dissolution matter covers the business valuation, the income determination, and any tracing or lifestyle analysis. Opposing counsel will test the valuation date, the goodwill treatment, the normalization of owner compensation and personal expenses, the income figure for support, and the documents relied on for tracing separate property. The economist should be able to show how the personal expenses run through the business affected both the valuation and the income figure, and how each tracing step ties to an account statement.
Checklist
Confirm the valuation date and goodwill treatment match the framework the court applies
Review the normalization adjustments for owner compensation and personal expenses against the ledger
Confirm the income for support reconciles to the business's cash flow and the tax returns
Verify each tracing step against account statements
Compare the opposing report's inputs and prepare a reconciliation
Questions to ask the economist
How did you separate personal goodwill from enterprise goodwill, and what supports the split?
Which personal expenses did you add back, and how did you identify them?
How does the income for support differ from the reported compensation, and why?
What documents support each step of the tracing?
Timeline
One to two preparation sessions in the two weeks before the deposition, after the report and the opposing report are served.
Required documents
The valuation and income report with its schedules
The general ledger detail and the personal expense analysis
Account statements supporting the tracing
The opposing expert's report
Common pitfalls
Valuing as of a date the framework does not use
Adding back personal expenses without ledger support for each
Presenting a tracing that skips steps where statements are missing, rather than stating the gap
How does the economist explain a difference between the owner's tax return income and the income for support?
By showing the cash flow the business generated for the owner beyond salary: distributions, personal expenses paid by the business, and retained earnings available to the owner. Each item is tied to the ledger or the tax return so the fact finder can see where the difference comes from.
How does the economist respond when the owner spouse disputes the personal expense add-backs?
By pointing to the ledger entry, the supporting document, and the basis for treating each item as personal. Add-backs that rest on the ledger survive the question; those that rest on assumption do not, which is why the report lists each with its source. The preparation session should review every add-back the opposing side is likely to contest.
How is the tracing defended when statements are missing for some months?
By stating the gap, showing the balances on either side of it, and explaining the assumption used to bridge it and its effect on the result. A tracing that presents a gap openly holds up better than one that skips it, and the fact finder can decide how much weight the bridged period deserves. The economist should not present a bridged period as if it were documented.
References
American Institute of Certified Public Accountants. (n.d.). Statement on Standards for Valuation Services (VS Section 100). AICPA & CIMA. Retrieved August 27, 2026. aicpa-cima.com
National Association of Certified Valuators and Analysts. (n.d.). NACVA professional standards and ethics. Retrieved August 27, 2026. nacva.com