Financial Analysis for Divorce and Marital Dissolution in Pennsylvania

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 Pennsylvania: 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.

Pennsylvania courts and expert standards

Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its inputs and their support in the record.

Where these cases are heard

Highest court: Supreme Court of Pennsylvania. Federal venues: E.D. Pa., M.D. Pa., W.D. Pa. Court system: pacourts.us.

Legal framework

Whether Pennsylvania 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 Pennsylvania; the governing framework in Pennsylvania 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 Pennsylvania

Attorney guides for divorce and marital dissolution cases

Other case types in Pennsylvania

Frequently asked: divorce and marital dissolution cases in Pennsylvania

Which Pennsylvania courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in Pennsylvania are heard in the Court of Common Pleas (General jurisdiction; 60 judicial districts; civil, criminal, family, and orphans' court divisions). Final appeals run to the Supreme Court of Pennsylvania. Matters within federal jurisdiction proceed in the United States District Courts for the Eastern District of Pennsylvania, Middle District of Pennsylvania, and Western District of Pennsylvania.

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

Whether Pennsylvania 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. Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its 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 Pennsylvania or call (201) 343-0700. Plaintiff and defense counsel.