Financial Analysis for Divorce and Marital Dissolution in Massachusetts

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 Massachusetts: 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.

Massachusetts courts and expert standards

Massachusetts courts ask whether the reasoning and methodology behind an expert opinion are reliable, which can be shown either by general acceptance in the profession or by the reliability factors the federal courts use, and whether the witness is qualified by training and experience. Forensic economic methods satisfy that inquiry through their published literature, so the examination usually turns on the inputs and their support in the record.

Where these cases are heard

Highest court: Supreme Judicial Court. Federal venues: D. Mass. Court system: mass.gov.

Legal framework

Whether Massachusetts 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 Massachusetts; the governing framework in Massachusetts 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.

Experts serving Massachusetts

Attorney guides for divorce and marital dissolution cases

Other case types in Massachusetts

Frequently asked: divorce and marital dissolution cases in Massachusetts

Which Massachusetts courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in Massachusetts are heard in the Probate and Family Court (Domestic relations, probate, adoptions) and the Superior Court (General jurisdiction; larger civil cases, major criminal cases). Final appeals run to the Supreme Judicial Court. Matters within federal jurisdiction proceed in the United States District Court for the District of Massachusetts.

How does Massachusetts's family-law framework shape the financial analysis?

Whether Massachusetts 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. Massachusetts courts ask whether the reasoning and methodology behind an expert opinion are reliable, which can be shown either by general acceptance in the profession or by the reliability factors the federal courts use, and whether the witness is qualified by training and experience. Forensic economic methods satisfy that inquiry through their published literature, so the examination usually turns on the inputs and their support in the record.

More questions about divorce and marital dissolution analysis

References

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