50. Lifestyle Analysis/ Pay & Need Analysis

Track: 
Family Law
Field of Study: 
Accounting
CPE Credit: 
1.5
Knowledge Level: 
Basic

Wednesday, November 7, 2018
 
7:30AM-8:45AM

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:

  • Identify and Classify Assets & Liabilities to include on marital and separate balance sheets:
    • a. Examine documentation and accuracy of the support
  • Assemble relevant information:
    • a. Current accounts (bank, brokerage) vs long-term compensation accounts (401k, pensions, etc.)
  • Evaluate monthly budget for each spouse:
    • a. Compare/contrast spouse's budgets
  • 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


SESSION SPEAKER(S)

Vice President, Mercer Capital