Financial Analysis for Divorce and Marital Dissolution in New Jersey

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 New Jersey: 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.

New Jersey courts and expert standards

New Jersey's trial judges act as gatekeepers under the state's own reliability inquiry, which weighs whether the method has been tested and accepted in the profession and whether it was reliably applied to the record, without adopting the federal standard outright; the witness is qualified by training and experience. An economic damages report meets that inquiry by tying each input to the record and naming the published source behind every rate and table.

Where these cases are heard

Highest court: Supreme Court of New Jersey. Federal venues: D.N.J. Court system: njcourts.gov.

Legal framework

Whether New Jersey 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 New Jersey; the governing framework in New Jersey 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 New Jersey

Attorney guides for divorce and marital dissolution cases

Other case types in New Jersey

Frequently asked: divorce and marital dissolution cases in New Jersey

Which New Jersey courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in New Jersey are heard in the Superior Court, Chancery Division (Equity matters, family court, probate), the Superior Court, Family Division (Domestic relations, juvenile, and family matters), and the Superior Court, Law Division (General civil and criminal matters; jury trials). Final appeals run to the Supreme Court of New Jersey. Matters within federal jurisdiction proceed in the United States District Court for the District of New Jersey.

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

Whether New Jersey 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. New Jersey's trial judges act as gatekeepers under the state's own reliability inquiry, which weighs whether the method has been tested and accepted in the profession and whether it was reliably applied to the record, without adopting the federal standard outright; the witness is qualified by training and experience. An economic damages report meets that inquiry by tying each input to the record and naming the published source behind every rate and table.

More questions about divorce and marital dissolution analysis

References

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