For divorcing couples in Florida, financial issues are usually tough to navigate. That’s why the financial analysis is so important. Sometimes referred to as a financial affidavit, this document is provided to your legal team to determine things like division of assets and whether alimony is warranted for either spouse. Forbes explains how a lifestyle analysis works and why it’s so important.
Establishing a standard of living
A lot of information goes into establishing the standard of living during a marriage. In general, this can include daily living expenses, income tax returns, financial statements, credit reports, recurring expenses, and typical spending habits for both you and your ex. Bringing together this information is a complex task, especially when records are unavailable. However, taking the proper steps is vital to address financial matters during a divorce.
Uncovering hidden assets
Not only do lifestyle analyses set standards, they can also help uncover hidden assets. During a divorce one or both spouses may attempt to conceal assets to prevent them from being included in the marital property. Detailed analysis can provide insight into these behaviors, such as when a spouse is making investments without the knowledge of the other person. A financial analysis can also disclose an extramarital affair by highlighting heretofore unknown expenses.
Preparing a lifestyle analysis
Even with a skilled legal team, preparing an accurate and thorough financial analysis is a challenge. Accordingly, many attorneys seek out the assistance of professionals with both financial and legal expertise (this is important to be able to create a projection of person’s future financial outlook). Without a solid accounting, it’s difficult for the court to determine alimony amounts and duration. Additionally, it’s crucial that you provide accurate records to your legal team.