Divorce: Economist at Trial

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

Trial testimony in a divorce or marital dissolution matter is usually before a judge, and the economist's presentation should be organized so the court can adopt findings directly from it: the business value under the framework's date and goodwill treatment, the income available for support with each adjustment shown, the tracing of separate property step by step, and any lifestyle analysis by category. Demonstratives should let the court see each adjustment and its source, and the rebuttal of the opposing expert should be organized by input so the court can rule on each disagreement.

Checklist

  1. Prepare a board for the valuation with the date, standard, goodwill treatment, and approaches applied
  2. Prepare the income for support schedule with each adjustment and its ledger source
  3. Prepare the tracing schedule with each step tied to an account statement
  4. Prepare a reconciliation of the two experts' valuations and income figures by input
  5. Rehearse the explanation of personal versus enterprise goodwill

Questions to ask the economist

Timeline

One to two preparation sessions in the week before testimony, after the opposing report has been reconciled.

Required documents

Common pitfalls

Frequently Asked Questions

How should the economist present findings a court can adopt?

As schedules where each line states the item, the adjustment, the source document, and the effect, followed by a conclusion that sums them. A court can adopt, modify, or reject each line with a finding, which is more useful than a single number the court must accept or reject whole.

How does the economist testify about goodwill?

By explaining what part of the business's value depends on the owner spouse personally and what part would transfer to a buyer, showing the evidence for the split, and stating the value under the treatment the framework requires. Where the court's framework excludes personal goodwill from the marital estate, the board shows the enterprise value separately. The economist states the method and lets the court apply the law.

How should the lifestyle analysis be presented?

As spending by category over the marriage's recent years, drawn from bank and credit statements, with the source for each category and the total reconciled to the income available. The court can adopt or adjust each category, and the analysis ties to the income determination so the two do not contradict each other. Categories that rest on estimate are labeled.

References

Request a consultation on Divorce and Marital Dissolution or call (201) 343-0700. Plaintiff and defense counsel.