Many of the most complex elements of divorce are financial. Spouses have to divide their property. They have to negotiate support matters. They even have to split up their financial obligations, such as credit card debts.
There are many ways for people to navigate the financial complexities of an upcoming divorce. Financial disclosure during the discovery process is part of that. Each spouse has to provide a thorough accounting of their assets and debts to the other and to the courts. Conducting a thorough review of both disclosures can facilitate a reasonable division of marital property.
In some cases, spouses may also want to consider a lifestyle analysis. What separates a lifestyle analysis from the financial disclosures made during the discovery process?
The analysis focuses on the standard of living
Financial disclosure involves providing thorough documentation regarding personal resources and liabilities. It is a very mathematical and objective process. A lifestyle analysis is somewhat different. It involves looking at the totality of the marital experience and determining the impact that the marital lifestyle standard should have on the terms of the divorce.
Factors including promises made by one spouse to the other and whether or not they share children can influence the need for a lifestyle analysis. In cases involving high levels of assets or marital income, a lifestyle analysis may prove beneficial. That is particularly true in cases involving minor children.
A lifestyle analysis can help establish that there may be grounds to deviate from child support standards because of the family’s comfortable lifestyle. Lifestyle analysis can also be important in cases where spouses want to seek alimony or spousal support. Proving that the family maintained a certain standard of living during the marriage can impact the amount of support that they can realistically expect after the divorce.
A lifestyle analysis is just one of many pieces of evidence that can influence the judge’s ruling related to financial support, property division and even child custody matters. Financial disclosures, on the other hand, are a mandatory element of litigated divorce. They can have an impact on major decisions related to property and financial support.
Spouses preparing for divorce often need professional input for an ideal outcome, and that’s okay. Discussing the potential benefits of a lifestyle analysis with a skilled legal team can help divorcing spouses explore all of the options for ensuring a fair financial outcome during divorce.
