Lifestyle / Pay & Need Analysis

This presentation was delivered by Karolina Calhoun, CPA/ABV/CFF at the AICPA 2018 Forensic & Valuation Services Conference.

Learning objectives include:

  • Identify and Classify Assets & Liabilities to include on marital and separate balance sheets:
    • Examine documentation and accuracy of the support
  • Assemble relevant information:
    • Current accounts (bank, brokerage) vs long-term compensation accounts (401k, pensions, etc.)
  • Evaluate monthly budget for each spouse:
    • Compare/contrast spouse’s budgets
  • Evaluate the payor’s ability to support and the payee’s need for support:
    • 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
    • Lifestyle analysis also provides the ability to measure the division of net worth at date of divorce and future net worth accumulation over time