Rebuttal analysis applied to divorce and marital dissolution litigation: methodology, deliverables, and case-specific considerations.
In a divorce the opposing financial analysis is tested on the business valuation, the income determination, and any tracing. The economist checks the valuation date and standard against the framework, the normalizing adjustments for owner compensation and personal expenses against the records, the treatment of personal and enterprise goodwill, whether the income available for support includes the cash flow the business records show beyond reported salary, and whether the tracing follows the funds through each account or assumes a result where the records end. Each finding is ranked by its effect so counsel can concentrate on the assumptions that carry the number.
Critique of an opposing economic damages, valuation, or forensic accounting report for plaintiff or defense counsel. The review tests the assumptions, data sources, discount rates, worklife and life expectancy inputs, growth rates, mitigation treatment, and arithmetic behind the opposing number, identifies the errors that matter, and quantifies how the conclusion changes when they are corrected. The result supports cross-examination, a rebuttal report, or a motion directed at the reliability of the opinion.
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 a rebuttal report where one is disclosed and provide deposition and trial testimony, cross-examination outlines, and support for motions directed at the opinion.
By rebuilding it from the business's books and bank records: compensation, distributions, personal expenses paid by the business, and retained cash flow. Where the opposing analysis relied on the tax return alone or added items the records do not support, the review states the difference.
Yes, and it should, because both rest on the same normalized financial statements. The review checks that the opposing analysis treated owner compensation consistently in the two, since a compensation figure that lowers the valuation and also lowers the income for support cannot both be right.
Request a consultation on Rebuttal or call (201) 343-0700. Plaintiff and defense counsel.