Forensic & Valuation Services Conference 2018

FVC1850 - Lifestyle Analysis/ Pay & Need Analysis

Nov 7, 2018 7:30am ‐ Nov 7, 2018 8:45am


Description

How to build a Lifestyle Analysis, otherwise known as a Pay and Need Analysis for a Family Law case needing financial consulting. -Identify assets and liabilities, whether or not they are marital or separate, and their future income producing ability. -Analyze sources of income and the future contribution to investments, retirement accounts, as well as future draws from the respective accounts -Assess current and future net worth accumulation over time.

Learning objectives:

  • 1. Identify and Classify Assets & Liabilities to include on marital and separate balance sheets 
    • a. Examine documentation and accuracy of the support
  • 2. Assemble relevant information a. Current accounts (bank, brokerage) vs long-term compensation accounts (401k, pensions, etc.)
  • 3. Evaluate monthly budget for each spouse 
    • a. Compare/contrast spouse's budgets
  • 4. Evaluate the payor's ability to support and the payee's need for support 
    • a. Lifestyle analysis comes into play here as the historical expenses may be used as a basis for monthly budget, however, depending on the finances, may or may not be supported post-divorce
    • b. Lifestyle analysis also provides the ability to measure the division of net worth at date of divorce and future net worth accumulation over time

Speaker(s):

Tags: Family Law

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