Financial Analysis for Divorce and Marital Dissolution in the District of Columbia

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

KW Economics prepares financial analyses for divorce and marital dissolution matters venued in the District of Columbia: income available for support, the value of business interests in the marital estate, and the tracing of separate and marital funds, each presented so that either spouse or the court can examine the figures.

A divorce or marital dissolution matter asks what income each spouse has available for support, what the marital assets, including any business interest, are worth for the division of the estate, and which assets are separate rather than marital. Each is answered from the business books, tax returns, and account histories rather than from the tax return alone. Read the full divorce and marital dissolution analysis guide.

District of Columbia courts and expert standards

District of Columbia courts ask the trial judge to act as gatekeeper for expert testimony, examining whether the witness is qualified by training and experience, whether the method is reliable and accepted in the profession, and whether it was applied reliably to the facts. An economic damages report meets that inquiry by tying each input to the record and naming its published sources.

Where these cases are heard

Highest court: District of Columbia Court of Appeals. Federal venues: D.D.C. Court system: dccourts.gov.

Legal framework

Whether the District of Columbia divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.

How the analysis is built

The same four steps apply to a divorce and marital dissolution matter venued in the District of Columbia; the governing framework in the District of Columbia decides how each finding is applied.

  1. Normalize the business's cash flow for owner compensation, personal expenses paid through the business, related-party dealings, and non-recurring items, listing each adjustment with its source.
  2. Value the business or practice as of the date the governing framework requires, under the income, market, and asset approaches as the facts support, and address personal and enterprise goodwill where the framework distinguishes them.
  3. Determine each spouse's income available for support from the same normalized statements, including distributions, perquisites, and cash flow retained in the business beyond reported salary.
  4. Trace separate property through the account statements step by step, classify commingled funds under the framework counsel identifies, and reduce pensions and deferred compensation to present value with the assumptions stated.

Attorney guides for divorce and marital dissolution cases

Other case types in the District of Columbia

Frequently asked: divorce and marital dissolution cases in the District of Columbia

Which District of Columbia courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in the District of Columbia are heard in the Superior Court of the District of Columbia (General jurisdiction trial court; civil, criminal, family, probate, and tax matters). Final appeals run to the District of Columbia Court of Appeals. Matters within federal jurisdiction proceed in the United States District Court for the District of Columbia.

How does the District of Columbia's family-law framework shape the financial analysis?

Whether the District of Columbia divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. District of Columbia courts ask the trial judge to act as gatekeeper for expert testimony, examining whether the witness is qualified by training and experience, whether the method is reliable and accepted in the profession, and whether it was applied reliably to the facts. An economic damages report meets that inquiry by tying each input to the record and naming its published sources.

More questions about divorce and marital dissolution analysis

References

Request a consultation on divorce and marital dissolution cases in the District of Columbia or call (201) 343-0700. Plaintiff and defense counsel.