Retaining an economist in a divorce or marital dissolution matter involves a scope that may include a business valuation, an income determination for support, a tracing of separate and marital property, and a lifestyle analysis, each with its own records. The engagement letter should state which are included, the valuation date the framework requires, and whether the economist is retained by one party or jointly. The records request reaches the business's general ledger and the parties' personal financial statements, because the personal expenses run through the business affect both the valuation and the income figure.
Checklist
Run the conflict check on both spouses, the business, and counsel
State the services in scope: valuation, income determination, tracing, lifestyle analysis
Confirm the valuation date and the goodwill treatment the framework requires
Request the business's financial statements, tax returns, and general ledger detail
Request personal tax returns, bank and brokerage statements, and loan applications
Questions to ask the economist
How do you present income for support when the business pays personal expenses of the owner spouse?
How do you separate personal goodwill from enterprise goodwill?
What do you need to trace separate property through commingled accounts?
Can you serve as a joint neutral expert, and how does that change the engagement?
Timeline
About one week for retention and the records request, then three to six weeks of analysis after the business and personal records arrive, then one to two weeks for the draft and final report.
Required documents
Business financial statements, tax returns, and general ledger detail
Personal tax returns, bank, brokerage, and retirement account statements
Loan applications and personal financial statements submitted to lenders
Documents establishing the acquisition and source of assets claimed as separate property
Common pitfalls
Retaining the economist without the general ledger, which is where personal expenses paid by the business appear
Confusing the valuation date with the separation date when the framework distinguishes them
Omitting the lifestyle analysis when the support claim depends on the marital standard of living
Why do loan applications matter in a divorce engagement?
Because a personal financial statement submitted to a lender states the owner's income and the business's value as the owner represented them at the time. When those representations differ from the positions taken in the divorce, the economist can address the difference and the fact finder can weigh it.
What changes when the economist is retained as a joint neutral?
The engagement letter names both parties, the records request goes to both, and the report is delivered to both at once. The method is the same as in a one-sided engagement, but the economist communicates through both counsel and does not consult privately with either side about strategy. Courts often give a joint report more weight, and it can narrow the dispute to a few adjustments.
How is the cost of a divorce engagement controlled?
By scoping the services separately: the valuation, the income determination, the tracing, and the lifestyle analysis each have their own records and can be authorized in stages. Tracing in particular grows with the number of accounts and years, so counsel should decide early whether the separate property claim justifies it. The engagement letter states the fee basis for each service.
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
U.S. Bureau of Labor Statistics. (n.d.). Current Population Survey (CPS). U.S. Department of Labor. bls.gov