Divorce financial analysis applied to divorce and marital dissolution litigation: methodology, deliverables, and case-specific considerations.
The divorce financial analysis addresses the matter's economic questions together: income available for support when a spouse is self-employed or compensated in ways that do not appear on a pay stub, the value of business interests in the marital estate, the marital standard of living documented from actual spending, and the tracing of separate versus marital funds. The economist builds each from the same set of tax returns, financial statements, and account records, presents each as its own section so it can be used independently, and writes the report so that either spouse or the court can examine the assumptions.
Financial analysis for matrimonial matters: determination of income available for support when a spouse is self-employed or compensated in ways that do not appear on a pay stub, valuation of business interests in the marital estate, lifestyle analysis that documents the marital standard of living, and tracing of separate versus marital funds through accounts and assets. Each analysis is written so counsel can present it directly and the other side can test it.
The analysis consists of the determination of each spouse's income available for support, including the cash flow a self-employed spouse draws from a business beyond reported compensation; a valuation of any closely held business or professional practice as of the date the governing framework requires; the tracing of separate property contributions and marital funds through accounts, real estate, and investments; a lifestyle analysis where the marital standard of living is at issue; and the present value of pensions, deferred compensation, and other assets that pay out over time. The drivers are personal and business tax returns, financial statements and general ledgers, bank, brokerage, and retirement account statements, compensation and benefit records, and account histories long enough to follow the funds at issue.
We issue the final report and provide deposition and trial testimony, settlement conference support, and rebuttal of opposing financial analyses.
The income determination and the business valuation rest on the same normalized financial statements, so they are usually engaged together; the lifestyle analysis and the tracing depend on the account records and can proceed as those arrive. The scope is set at retention and can be widened as the case develops.
Yes. The method is the same whichever spouse retains the economist, and the report states each element so the other side can test it. The same report can be prepared as a joint or court-appointed engagement.
Request a consultation on Divorce Financial Analysis or call (201) 343-0700. Plaintiff and defense counsel.