Organizing and deciphering financial documents in the early stages of a divorce proceeding is a daunting task that many wish to avoid. However, too often it is a necessary evil that must be considered. This exercise is commonly called a       Lifestyle Analysis. Years ago it was common for one spouse to seek a large              monthly support sum; the other spouse to plea an amount equal to a fraction of       that  amount, and the court to “split the pie in half”. Today, the court is much more  sophisticated and equipped to understand how the investigation of the couple’s lifestyle relates to their support determination.  In fact, this process not only       identifies the ordinary and necessary living expenses of the parties; but identifies unusual, occasional, seasonal, and non-recurring expenses.

Today this analysis is required not only by the “non-money” spouse seeking Pendent Lite relief, but often by each party.  Half of these engagements are now performed on behalf of the primary “income earner”, looking to prevent his/her spouse from receiving an unreasonable temporary support order. The investigation of the couple’s “marital lifestyle” has become a hot topic in both open court and closed door proceedings.  In fact, the court has welcomed this exercise as a valuable tool that has influenced both Pendent Lite support orders and the final financial divorce judgment.  At the very least, the investigation of the couple’s lifestyle keeps the litigants and their counsel on their toes when it comes to submitting net worth statements.

The laborious chore of locating and interpreting documents is not attractive. Many are not truly aware of their actual economic situation, particularly those not in control or responsible for the household finances. Even a slight miscalculation can influence the Court’s judgment. With so much riding on the correct presentation of the couple’s lifestyle, a formal analysis is often welcome. However, with the individuality of each case, a one-size-fits-all approach is not the best solution.

Support in the tedious chore of sifting through documents is a welcomed relief by many in the midst of divorce and their counsel.  This effort generally includes, but is not limited to (1) analyzing personal and business income tax returns; (2) analyzing bank statements, brokerage statements, and credit card statements; (3) investigating the nature and frequency of significant spending, (4) identify non-recurring and seasonal expenses, and (5) the review of credit reports.  In many instances this exercise has been able to identify spending patterns that were previously unknown or can uncover gambling and drug habits, the accumulation of art, memorabilia and collectables, the dissipation of marital assets, and even the existence of extramarital relationships.

Once the necessary records are analyzed, calculations regarding the monthly and annual average spending can be determined.  The detail and strength of this analysis leads to credible arguments that can be made to demonstrate a true and accurate analysis of the couple’s lifestyle. A well-prepared lifestyle analysis provides incalculable benefits to counsel, clients and the Court. Clients grasp the truth of their prior, present, and future economic situations-allowing them to better furnish themselves with the tools necessary to understand their financial position.

Attorneys gain strategic advantages in fighting for the monetary settlement their client deserves; and Judges use the analysis as a catalyst for rendering an equitable decision. All in all, the analysis of the marital lifestyle is an imperative and valuable tool.

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