50. Lifestyle Analysis/ Pay & Need Analysis

Family Law
Field of Study: 
CPE Credit: 
Knowledge Level: 

Wednesday, November 7, 2018

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