Why Is Lifestyle Analysis Important In A Divorce?
As a divorce attorney you already know that an accurate lifestyle analysis is a key component in getting a fair settlement. You probably don’t also have a CPA along with your law degree, but you can depend on the lifestyle analysis tools in Divorce Financials family law software to do the work for you.
First let’s establish just why a lifestyle analysis is important:
- Prove Financial Need – When presented with the question of how much money it costs to live, many people just shrug. Money comes in. Money goes out. As long as you don’t bounce checks, it’s all good, right? A lifestyle analysis puts a number to a person’s lifestyle, and that number will strengthen settlement negotiations.
- Learn The Truth – People lie. The ex is lying to trying to hold onto assets, but your client is probably lying too. Numbers don’t lie. A lifestyle analysis is an objective and provable documentation of a couple’s assets and expenses.
- Find Hidden Assets – It is possible to hide money in offshore accounts or by giving cash to a friend to hold until a divorce is over. Tracking the money through a lifestyle analysis may not find the money, but it will find the cash flow. Then you can ask the spouse just what happened to that half million dollars that has slowly been disappearing from martial accounts over the years.
Divorce Financials divorce legal software makes lifestyle analysis easy, even for non-accountants. All you need is a few bank and credit card statement. From the Lifestyle Analysis page:
- Select “Bank Accounts” or “Credit Card Accounts” as appropriate
- Click “Add New” and type the name of the institution that holds the account
- Select the account and click “Add New” to add a bank statement. Fill in the statement end date, starting balance and ending balance.
- Select the statement and click “Add Transaction”. Enter each transaction on the statement: the date, payee, amount and category. Click “Exempt” if it is a transaction that should not be considered in the lifestyle analysis, such as a one-time expense.
Within minutes you will have a complete financial picture for the couple. The more statements you have, the more accurate your lifestyle analysis will be. Divorce Financials family lawyer software streamlines the process so that in simple cases, you won’t need an outside accountant.