Forensic accounting divorce analysis of proposing property division and alimony need and ability to pay. Learn about a marital balance sheet and a lifestyle analysis.

1. NATIONAL ASSOCIATION OF CERTIFIED VALUATION ANALYSTS  INSTITUTE OF BUSINESS APPRAISERS
Thursday, June 9, 2011  Matrimonial Litigation
Breakin’ Up is Hard to Do:
Dividing the Marital Estate
and Figuring Alimony
Robert Vance, CPA, CVA, ABV, CFF, CFP
2 0 1 1 A N N U A L C O N S U L T A N T S’ C O N F E R E N C E
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3. NATIONAL ASSOCIATION OF CERTIFIED VALUATION ANALYSTS  INSTITUTE OF BUSINESS APPRAISERS
Thursday, June 9, 2011  Matrimonial Litigation
Breakin’ Up is
Hard to Do
Robert Vance,
CPA, CVA, ABV, CFF, CFP
2 0 1 1 A N N U A L C O N S U L T A N T S’ C O N F E R E N C E
~ Adversity Brings Opportunity ~ Tomorrow’s Information Today
~ ~
J U N E 8 – 1 1, 2 0 1 1  S A N D I E G O B A Y F R O N T H I L T O N

4. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
D◦I◦V◦O◦R◦C◦E
What Can You Do?
• Identify
– Tax Returns
– Account Statements
– Creative (NOL C/F, Dissipation)
• Classify
– Marital v. Separate
– Transmutation, Commingling
• Quantify
– Value a Business
– Value a Pension
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
4

5. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
D◦I◦V◦O◦R◦C◦E
What Can You Do?
• Propose a Division
• Figure Alimony Need & Ability to Pay
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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6. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Dividing the Marital Estate
Supporting Documentation
•General - 5 Years of business & personal tax returns, with W-2s
•Marital Residence - Real estate appraisal
•Mortgage - Payoff or monthly statement
•Checking/Savings Accounts – 24-48 months of bank statements
checks
•Investment Accounts - 24-48 months of monthly/quarterly statements
•Defined Benefit Pension - Vested benefit statement & plan document
•Defined Contrib. Plan/401(k) Savings Plan, etc. - 24-48 months of
statements
•Stock Options - Vested & unvested grant statement & plan document
•IRA - 24-48 months of monthly/quarterly statements
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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7. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Dividing the Marital Estate
Supporting Documentation
•Vehicles - NADA valuation from Internet
•Other Personal Property - List & estimates from parties; appraisal
Small Business - Business valuation from qualified expert
•Credit Cards - 24-48 months of monthly statements
•Dissipation of Marital Assets - Receipts, canceled checks, CC
statements, depo. excerpts, etc.
•Electronic file copies, including passwords - Quicken and
QuickBooks
•Subpoena to all banks that a spouse may use
•Request the entire loan file, including personal financial statements
(“PFS”) and loan applications
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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8. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
The “Marital Balance Sheet”
Factors to Consider
•Spouses’ desire for a particular asset
•Practicality, legality or necessity of one spouse owning an
asset or owing a debt
•Future income earnings from an asset
•Future earning capacity of each spouse
•Concept of offset
•Attorney’s request for an unequal division
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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9. Smith v. Smith
Marital Balance Sheet
3/31/11 Child or
Separate Proposed Division
No. Description Title FMV Debt Equity Account Marital Husband Wife Notes
REAL ESTATE
1
2
3
4
5
6
CASH & INVESTMENTS
7
8
9
10
11
12
13
14
15
16
17
RETIREMENT
18
19
20
21
22
23
24
25
PERSONAL PROPERTY
26
27
28
29
30
OTHER DEBTS
30
31
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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TOTALS 0 0 0 0 0 0 0
9 #DIV/0! #DIV/0!

10. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Construction
1.Excel
2.Numbered lines
3.Numbered pages
4.Group asset and debt categories such as “Real Estate”
and “Retirement”
5.Last 4 digits of account #
6.List debts with secured assets showing the net equity
7.Display property claimed as separate in whole or in part
so as to establish the claim
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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11. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Construction
8.Display the proposed division of each and every item
along with the total net percentage to each spouse
9.Offset the present value of a pension
10.Offset the fair market value of a small business with
other assets
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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12. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Related Issues & Analyses for the MBS
•Present Valuing a Defined Benefit Plan
•Dissipation Analysis
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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13. Smith v. Smith
Defined Benefit Pension Valuation
3/31/11
Case Information
Date of Valuation 3/31/2011 Date of Marriage 1/31/1993
Date of Preparation 3/31/2011 Years of Marriage 18.2
Plan Information
Employer ABC Corporation Date of Retirement 4/1/2020
Payout Method Straight Life Annuity Plan Name ABC Corp. Employee's Pension Plan
Participant Information
Participant John Smith Date of Birth 3/27/1960
Sex M Age at Valuation Date 51.0
Race W Vested Percentage 100.0%
Date of Hire 4/2/1990 Years of Service 21.0
Calculations Notes
Monthly retirement benefit $4,961 a.
Retirement age used in this calculation 60.0
Life expectancy at valuation date (1) 28.2 b.
Number of years to retirement age (deferral period) 9.0 c.
Years of life expectancy beyond retirement age (payout period) 19.2 d. b. - c. = d.
Discount rate for payout period (2) 4.50% e.
Present value of monthly benefits at retirement date 764,473 f. Present value of a.
discounted with e.
Discount rate for deferral period (2) 4.50% g.
Expected value of retirement benefits at valuation date 514,417 h. Present value of f.
discounted with g.
Ratio of total benefits earned during marriage 86.7% i. Years of marriage /
years of service
Marital value of retirement benefits $445,828 j. h. x i. = j.
1) Life Expectancy Tables: "United States Life Tables, 2006", National Vital Statistics Reports, Vol. 58, No. 21, June 28, 2010, National
Center for Health Statistics; Life Table for white males.
2) Derived from Federal Reserve Statistical Release; 5 Year average of 20 Year, U.S. Government Securities, Treasury Constant Maturities
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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14. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Dissipation
Dissipation: “The use of an asset for an illegal or
inequitable purpose, such as a spouse’s use of community
property for personal benefit when a divorce is imminent.”
Black’s Law Dictionary
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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15. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Tennessee: “Ward Factors”
The Trial Court must consider:
1.Whether the evidence presented at trial supports the alleged purpose
of the various expenditures; and if so,
2.Whether the alleged purpose equates to dissipation under the
circumstances
a. The typicality of the expenditure to the marriage
b. The benefactor of the expenditure, i.e., it is primarily benefited
the marriage or the sole dissipating spouse
c. The proximity of the expenditure to the breakdown of the
marriage; and the amount of the expenditure
d. The amount of the expenditure
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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16. Smith v. Smith
Dissipation of Marital Assets by Husband Girlfriend Expenses
3/31/11 Clothing Casino
Check & Dept. Meals & Loans to Athletic ATM Cosmetic
Date Num Description Memo Totals Travel Stores Ent. G'friend Jewe lry Misc. Tickets Cash Medical
10/1/05 Refinance of H's Car Per H's Depo 0.00
10/1/05 Disney World Trip H's Answers to Interrog. 5,000.00 5,000.00
10/13/05 1032 Sports Tickets Etc. Per Answers to Interrog. 2,000.00 2,000.00
10/24/05 1009 Best Buy 43922.00 2,500.00 2,500.00
11/1/05 1016 Check to Girlfriend 2,500.00 2,500.00
11/1/05 Credit Union Loan #12345 Unknown purpose 0.00
11/1/05 1045 Sports Tickets Etc. Per Answers to Interrog. 2,000.00 2,000.00
11/28/05 Abercrombie And Fitch 518.95 518.95
11/28/05 Banana Republic 219.58 219.58
12/6/05 Airline Per Answers to Interrog. 503.90 503.90
12/6/05 Airline Per Answers to Interrog. 503.90 503.90
12/6/05 Airline Per Answers to Interrog. 503.90 503.90
12/20/05 1053 Check to Girlfriend 415.00 415.00
12/27/05 Miguelas Clothing Girlfriend 692.65 692.65
12/29/05 Miguelas Clothing Girlfriend 127.00 127.00
1/3/06 Airline 915.14 915.14
1/3/06 Airline Chicago trip 915.14 915.14
2/15/06 Cosmetic Dentist Inc. 5,000.00 5,000.00
2/15/06 Hair Plugs R Us Per H's Admission 10,200.00 10,200.00
2/22/06 1123 Check to Girlfriend 360.00 360.00
4/10/06 5135 Big Law Firm 5,000.00 5,000.00
4/22/06 Billabong Cabazon 166.95 166.95
5/10/06 Victoria's Secret 127.28 127.28
5/11/06 Barbie Live Per Answers to Interrog. 135.55 135.55
5/12/06 Atm Cash Withdrawal 402.00 402.00
5/12/06 Ticketmaster Per Answers to Interrog. 1,021.55 1,021.55
5/18/06 Best Buy 924.20 924.20
5/19/06 Girlfriend's Diamond Ring Per H's Depo 20,000.00 20,000.00
5/20/06 ABC Marina Per Answers to Interrog. 175.26 175.26
5/30/06 Marriott Hotels LA 578.28 578.28
6/8/06 Atm Cash Withdrawal 400.00 400.00
6/9/06 1130 Cash 1,300.00 1,300.00
6/9/06 Infinity Per Answers to Interrog. 0.00
7/10/06 Gap 411.85 411.85
7/10/06 Victoria's Secret 343.05 343.05
8/9/06 Credit Union Loan #4567 Unknown purpose 0.00
8/17/06 Over-the-counter Withdrawal 6,000.00 6,000.00
9/8/06 1283 Cash 800.00 800.00
10/16/06 Toyota Per Answers to Interrog. 0.00
11/22/06
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 –3,333.792011  SAN DIEGO BAYFRONT HILTON9,302.00
Atm Cash Withdrawal
Totals 5,901.47
11, 6,998.10 3,275.00 20,000.00 7,500.00 4,924.20 400.00
400.00
76,434.56 15,200.00
16

17. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Case Study – The Smiths
Personal
Husband - (“money spouse”) – airline pilot – age 51
Wife - (“non-money spouse”) – office worker – age 51
Children, ages 15 and 13
18 year marriage
Major Assets
Marital Residence in TN with 20 years on the mortgage
Rental House in D.C. area
H – Defined Benefit Plan
H – Military Retirement
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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18. Smith v. Smith
Marital Balance Sheet - Round 1
3/31/11 Child or
Separate Proposed Division
No. Description Title FMV Debt Equity Account Marital Husband Wife Notes
REAL ESTATE
1 Rental Property-1234 Maple Cove, D.C. J 200,000 Appraisal dated 11/30/10; listed for sale
2 Estimated Sales Comm. on Rental Prop. Sale J (24,000) Estimated
3 Estimated Income Tax on Rental Property Sale J (35,000) 141,000 141,000 70,500 70,500 Estimated
4 Marital Residence-4567 Main St., TN J 250,000 Appraisal dated 12/15/10; listed for sale
5 Marital Residence-Mortgage #05-227 J (119,000) 131,000 131,000 131,000 Statement dated 2/28/11
CASH & INVESTMENTS
6 Checking Account #5689 H 2,500 2,500 2,500 2,500 Statement dated 2/28/11
7 Checking Account #9876 W 3,500 3,500 3,500 3,500 Statement dated 2/28/11
8 Savings Account #1234 J 11,500 11,500 11,500 11,500 Statement dated 2/28/11
9 ABC Corporation Stock-200 shr H 20,000 20,000 20,000 20,000 Statement dated 2/28/11
10 Amer. Century I #3698 W 20,000 20,000 20,000 20,000 Statement dated 2/28/11
11 Amer. Century-Money Market #5678 J 31,000 31,000 31,000 31,000 Statement dated 2/28/11
12 Amer. Century-II #6543 J 36,000 36,000 36,000 36,000 Statement dated 2/28/11
13 Jones Fund #1478 J 7,000 7,000 7,000 7,000 Statement dated 2/28/11
14 Janus-Wordwide #9998 J 2,000 2,000 2,000 2,000 Statement dated 2/28/11
15 Janus-Twenty #8889 J 9,000 9,000 9,000 9,000 Statement dated 2/28/11
16 eTrade Account #2589 H 4,000 4,000 4,000 4,000 Statement dated 2/28/11
17 Aviation Manufacturing Inc.-30% Int. H 300,000 300,000 300,000 300,000 Per Valuation performed by FVS, PLC
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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19. RETIREMENT
18 ABC Co. Pension Plan #AB-123 H 514,417 514,417 (68,589) 445,828 445,828 PV of future benefits as of 3/31/11
19 Military Pension Plan H 190,000 190,000 (20,000) 170,000 170,000 PV of future benefits as of 1/31/11
20 Money Purchase Pension Plan #XY-9876 H 140,000 140,000 140,000 140,000 Statement dated 2/28/11
21 Retirement Savings Plan #JK-6543 H 550,000 550,000 550,000 275,000 275,000 Statement dated 2/28/11
22 IRA #02-3456 H 11,000 11,000 11,000 11,000 Statement dated 2/28/11
23 IRA II #98-7654 H 122,000 122,000 122,000 122,000 Statement dated 2/28/11; 25% / 75% Split
24 403b Plan #9876 W 38,000 38,000 38,000 38,000 Statement dated 2/28/11
25 IRA III #6543 W 35,000 35,000 35,000 35,000 Statement dated 2/28/11
PERSONAL PROPERTY
26 1992 Mercedes J 12,000 12,000 12,000 12,000 NADA Average retail value as of 1/31/11
27 1999 Toyota W 3,200 3,200 3,200 3,200 NADA Average retail value as of 1/31/11
28 2003 Chevrolet PU Truck H 8,800 8,800 8,800 8,800 NADA Average retail value as of 1/31/11
29 Personal Property J 20,000 20,000 20,000 10,000 10,000 H & W Estimate
30 Husband's Dissipation of Marital Assets H 76,435 76,435 76,435 76,435 Per Forensic Analysis
OTHER DEBTS
30 Visa #4529 J (4,000) (4,000) (4,000) (4,000) Statement dated 2/28/11
31 Amex #1234 W (8,500) (8,500) (8,500) (8,500) Statement dated 2/28/11
32 Discover #6549 W (9,500) (9,500) (9,500) (9,500) Statement dated 2/28/11
TOTALS 2,617,352 (200,000) 2,417,352 (88,589) 2,328,763 1,544,563 784,200
66.3% 33.7%
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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20. Smith v. Smith
Marital Balance Sheet - Round 2
3/31/11 Child or
Separate Proposed Division
No. Description Title FMV Debt Equity Account Marital Husband Wife Notes
REAL ESTATE
1 Rental Property-1234 Maple Cove, D.C. J 200,000 Appraisal dated 11/30/10; listed for sale
2 Estimated Sales Comm. on Rental Prop. Sale J (24,000) Estimated
3 Estimated Income Tax on Rental Property Sale J (35,000) 141,000 141,000 70,500 70,500 Estimated
4 Marital Residence-4567 Main St., TN J 250,000 Appraisal dated 12/15/10; listed for sale
5 Marital Residence-Mortgage #05-227 J (119,000) 131,000 131,000 131,000 Statement dated 2/28/11
CASH & INVESTMENTS
6 Checking Account #5689 H 2,500 2,500 2,500 2,500 Statement dated 2/28/11
7 Checking Account #9876 W 3,500 3,500 3,500 3,500 Statement dated 2/28/11
8 Savings Account #1234 J 11,500 11,500 11,500 11,500 Statement dated 2/28/11
9 ABC Corporation Stock-200 shr H 20,000 20,000 20,000 20,000 Statement dated 2/28/11
10 Amer. Century I #3698 W 20,000 20,000 20,000 20,000 Statement dated 2/28/11
11 Amer. Century-Money Market #5678 J 31,000 31,000 31,000 31,000 Statement dated 2/28/11
12 Amer. Century-II #6543 J 36,000 36,000 36,000 36,000 Statement dated 2/28/11
13 Jones Fund #1478 J 7,000 7,000 7,000 7,000 Statement dated 2/28/11
14 Janus-Wordwide #9998 J 2,000 2,000 2,000 2,000 Statement dated 2/28/11
15 Janus-Twenty #8889 J 9,000 9,000 9,000 9,000 Statement dated 2/28/11
16 eTrade Account #2589 H 4,000 4,000 4,000 4,000 Statement dated 2/28/11
17 Aviation Manufacturing Inc.-30% Int. H 300,000 300,000 300,000 150,000 150,000 Per Valuation performed by FVS, PLC
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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21. RETIREMENT
18 ABC Co. Pension Plan #AB-123 H 514,417 514,417 (68,589) 445,828 445,828 PV of future benefits as of 3/31/11
19 Military Pension Plan H 190,000 190,000 (20,000) 170,000 170,000 PV of future benefits as of 1/31/11
20 Money Purchase Pension Plan #XY-9876 H 140,000 140,000 140,000 140,000 Statement dated 2/28/11
21 Retirement Savings Plan #JK-6543 H 550,000 550,000 550,000 550,000 Statement dated 2/28/11
22 IRA #02-3456 H 11,000 11,000 11,000 11,000 Statement dated 2/28/11
23 IRA II #98-7654 H 122,000 122,000 122,000 30,500 91,500 Statement dated 2/28/11; 25% / 75% Split
24 403b Plan #9876 W 38,000 38,000 38,000 38,000 Statement dated 2/28/11
25 IRA III #6543 W 35,000 35,000 35,000 35,000 Statement dated 2/28/11
PERSONAL PROPERTY
26 1992 Mercedes J 12,000 12,000 12,000 12,000 NADA Average retail value as of 1/31/11
27 1999 Toyota W 3,200 3,200 3,200 3,200 NADA Average retail value as of 1/31/11
28 2003 Chevrolet PU Truck H 8,800 8,800 8,800 8,800 NADA Average retail value as of 1/31/11
29 Personal Property J 20,000 20,000 20,000 10,000 10,000 H & W Estimate
30 Husband's Dissipation of Marital Assets H 76,435 76,435 76,435 76,435 Per Forensic Analysis
OTHER DEBTS
30 Visa #4529 J (4,000) (4,000) (4,000) (4,000) Statement dated 2/28/11
31 Amex #1234 W (8,500) (8,500) (8,500) (8,500) Statement dated 2/28/11
32 Discover #6549 W (9,500) (9,500) (9,500) (9,500) Statement dated 2/28/11
TOTALS 2,617,352 (200,000) 2,417,352 (88,589) 2,328,763 1,064,063 1,264,700
45.7% 54.3%
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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22. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Figuring Reasonable Need and the Ability to Pay
Alimony
•Know your alimony code and case law
•Property Division first
•Alimony second
•Single-month v. multi-year
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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23. Smith v. Smith
Wife's Need for Support
3/31/11
Monthly Basis - 1st Year Only
Gross Monthly Income 3,333
Net Monthly Income After Taxes & Deductions 970
Child Support 3,200
Total Monthly Income 4,170
Mortgage (1,950)
Monthly Living Expenses (7,083)
Shortfall (4,863)
Alimony "Need" 5,000
Surplus 137
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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24. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Single-month flawed for these reasons:
1.Represents a snapshot in time
2.Gross understatement of income by self-employed and commission
or bonus-dependant spouses
3.Use of expense figures that appear to be historical, however the
future expenses will inevitably be different due to new housing
arrangements, additional child care expenses, duplications, and
INFLATION
4.Failure to incorporate the use of investment earnings available from
the divided property
5.Failure to incorporate the use of retirement assets or pensions at
retirement date or for use immediately if necessary
6.Overstatement of monthly expenses after listing those ordered to pay
as temporary support which may end
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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25. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
The Need and the Ability to Pay Analysis
•A simplified, lifetime financial plan covering all of the
remaining years of each spouse’s life expectancy
•A forward-looking projection
•Standard of Living
•Earning Capacity
•If I had a dime for every time I heard the statement
“business is way-off this year” during the pendency of a
divorce, I would be a rich man
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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26. Breakin’ Up is Hard to Do:
Dividing the Marital Estate and Figuring Alimony
Steps
1.Calculate the remaining life expectancy of each spouse
2.Allow for contributions to retirement plans and/or IRAs based
on past practices
3.Incorporate an investment rate of return on the non-retirement
financial assets
4.Factor in the receipt of child support
5.Figure the new mortgage note or rent based on an
approximation of the pre-divorce standard of living
6.Analyze the personal living expenses – general ledger
7.Calculate federal and state taxes on the projected earnings,
other taxable incomes, itemized deductions and the tax
consequences for paying/receiving alimony
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
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27. Smith v. Smith
Wife's Need for Support
3/31/11
(A) (B) (C) (D) (E) (F) (G) (H) (I) (K) (L) (M) (N) (O) (P) (Q)
+ - - + + + + = - = - - = =
Personal
Employment Social Federal Net Living Exp. Annual Monthly
Earnings Retirement Child Alimony Draws From Security Total Income Disposable Mortgage 2.5% (Deficit) (Deficit)
Year Age 2.0% COLA FICA Deductions Support $5,000 Retirement 2.5% COLA Income Tax Income Prin & Int Inflation or Surplus or Surplus
1 51 40,000 (3,060) (15,000) 38,400 60,000 0 0 120,340 (10,297) 110,043 (23,400) (85,000) 1,643 137
2 52 40,800 (3,121) (15,000) 25,200 60,000 0 0 107,879 (10,998) 96,881 (23,400) (87,125) (13,644) (1,137)
3 53 41,616 (3,184) (15,000) 25,200 60,000 0 0 108,632 (11,445) 97,188 (23,400) (89,303) (15,515) (1,293)
4 54 42,448 (3,247) (15,000) 0 60,000 0 0 84,201 (11,836) 72,365 (23,400) (77,805) (28,841) (2,403)
5 55 43,297 (3,312) (15,000) 0 60,000 0 0 84,985 (11,991) 72,994 (23,400) (79,750) (30,156) (2,513)
6 56 44,163 (3,378) (15,000) 0 60,000 0 0 85,785 (12,086) 73,698 (23,400) (81,744) (31,446) (2,621)
7 57 45,046 (3,446) (15,000) 0 60,000 0 0 86,600 (13,243) 73,358 (23,400) (83,788) (33,830) (2,819)
8 58 45,947 (3,515) (15,000) 0 60,000 0 0 87,432 (15,647) 71,785 (23,400) (85,883) (37,497) (3,125)
9 59 46,866 (3,585) (15,000) 0 60,000 0 0 88,281 (15,705) 72,576 (23,400) (88,030) (38,853) (3,238)
10 60 47,804 (3,657) (15,000) 0 60,000 0 0 89,147 (15,704) 73,443 (23,400) (90,230) (40,188) (3,349)
11 61 0 0 0 0 60,000 75,000 0 135,000 (29,303) 105,697 (23,400) (92,486) (10,189) (849)
12 62 0 0 0 0 0 140,000 0 140,000 (30,559) 109,441 (23,400) (94,798) (8,757) (730)
13 63 0 0 0 0 0 140,000 0 140,000 (30,430) 109,570 (23,400) (97,168) (10,999) (917)
14 64 0 0 0 0 0 140,000 0 140,000 (30,259) 109,741 (23,400) (99,597) (13,256) (1,105)
15 65 0 0 0 0 0 140,000 0 140,000 (30,041) 109,959 (23,400) (102,087) (15,529) (1,294)
16 66 0 0 0 0 0 140,000 0 140,000 (29,775) 110,225 (23,400) (104,640) (17,815) (1,485)
17 67 0 0 0 0 0 140,000 15,000 155,000 (33,028) 121,972 (23,400) (107,256) (8,684) (724)
18 68 0 0 0 0 0 140,000 15,375 155,375 (32,927) 122,448 (23,400) (109,937) (10,889) (907)
19 69 0 0 0 0 0 140,000 15,759 155,759 (32,782) 122,977 (23,400) (112,685) (13,108) (1,092)
20 70 0 0 0 0 0 140,000 16,153 156,153 (32,591) 123,562 (23,400) (115,502) (15,341) (1,278)
21 71 0 0 0 0 0 140,000 16,557 156,557 (32,351) 124,206 0 (118,390) 5,816 485
22 72 0 0 0 0 0 140,000 16,971 156,971 (32,431) 124,540 0 (121,350) 3,191 266
23 73 0 0 0 0 0 140,000 17,395 157,395 (32,470) 124,926 0 (124,384) 542 45
24 74 0 0 0 0 0 140,000 17,830 157,830 (32,466) 125,365 0 (127,493) (2,128) (177)
25 75 0 0 0 0 0 140,000 18,276 158,276 (32,415) 125,861 0 (130,680) (4,820) (402)
26 76 0 0 0 0 0 140,000 18,733 158,733 (32,316) 126,417 0 (133,947) (7,531) (628)
27 77 0 0 0 0 0 140,000 19,201 159,201 (32,165) 127,036 0 (137,296) (10,260) (855)
28 78 0 0 0 0 0 140,000 19,681 159,681 (31,959) 127,723 0 (140,729) (13,006) (1,084)
29 79 0 0 0 0 0 140,000 20,173 160,173 (31,693) 128,481 0 (144,247) (15,766) (1,314)
30 80 0 0 0 0 0 140,000 20,678 160,678 (31,364) 129,314 0 (147,853) (18,539) (1,545)
31 81
32
2011
82
ANNUAL CONSULTANTS’ CONFERENCE140,000 21,72411,161,195
0
0
0
0
0
0
0
0
0
0
140,000 21,195
 JUNE 8 – 161,724
2011  (30,969) 130,225
SAN DIEGO BAYFRONT
(30,504) 131,220
0
0
(151,549)
HILTON
(155,338)
(21,324)
(24,118)
(1,777)
(2,010)
437,989 (33,506) (150,000) 88,800 27 290,703 4,308,986
660,000 3,015,000 (823,752) 3,485,234 (468,000) (3,518,072) (500,837)

28. Smith v. Smith Checking Account #5689 0
Wife's Investment Savings Checking Account #9876 3,500
3/31/2011 Savings Account #1234 0
See MBS Lines
ABC Corporation Stock-200 shr 0
Allocation: 100% 0% 25% 35% 40% American Century Accounts 20,000
6-16
Balance at Divorce: 45,500 0 11,375 15,925 18,200 Jones Fund #1478 7,000
Investment Type: Cash Fixed Inc. Fixed Inc. Equities Janus-Wordwide #9998 2,000
Investment Vehicle: Average 12 Mo. C.D. U.S. Treas. Bond Fund Stock Avg. Janus-Twenty #8889 9,000
Return %: 5.7% 1.0% 4.5% 5.0% 7.0% eTrade Account #2589 4,000
45,500
Net Proceeds
Annual Cumulative Surplus After Sale of Investment
Year Age Return Return Draws or Deficit Rental Prop. Balance
1 51 0 512 796 1,274 2,582 2,582 1,643 49,725
2 52 0 559 870 1,392 2,821 5,403 (13,644) 38,902
3 53 0 438 681 1,089 2,208 7,611 (15,515) 25,595
4 54 0 288 448 717 1,453 9,064 (28,841) (1,793)
5 55 0 (20) (31) (50) (101) 8,963 (30,156) (32,050)
6 56 0 (361) (561) (897) (1,819) 7,144 (31,446) 70,500 5,185
7 57 0 58 91 145 294 7,438 (33,830) 150,000 121,649
8 58 0 1,369 2,129 3,406 6,904 14,342 (37,497) 91,056
9 59 0 1,024 1,593 2,550 5,167 19,509 (38,853) 57,370
10 60 0 645 1,004 1,606 3,255 22,764 (40,188) 20,437
11 61 0 230 358 572 1,160 23,924 (10,189) 11,408
12 62 0 128 200 319 647 24,571 (8,757) 3,298
13 63 0 37 58 92 187 24,758 (10,999) (7,514)
14 64 0 (85) (131) (210) (426) 24,332 (13,256) (21,196)
15 65 0 (238) (371) (593) (1,202) 23,130 (15,529) (37,927)
16 66 0 (427) (664) (1,062) (2,153) 20,977 (17,815) (57,895)
17 67 0 (651) (1,013) (1,621) (3,285) 17,692 (8,684) (69,864)
18 68 0 (786) (1,223) (1,956) (3,965) 13,727 (10,889) (84,718)
19 69 0 (953) (1,483) (2,372) (4,808) 8,919 (13,108) (102,634)
20 70 0 (1,155) (1,796) (2,874) (5,825) 3,094 (15,341) (123,800)
21 71 0 (1,393) (2,167) (3,466) (7,026) (3,932) 5,816 (125,010)
22 72 0 (1,406) (2,188) (3,500) (7,094) (11,026) 3,191 (128,913)
23 73 0 (1,450) (2,256) (3,610) (7,316) (18,342) 542 (135,687)
24 74 0 (1,526) (2,375) (3,799) (7,700) (26,042) (2,128) (145,515)
25 75 0 (1,637) (2,547) (4,074) (8,258) (34,300) (4,820) (158,593)
26 76 0 (1,784) (2,775) (4,441) (9,000) (43,300) (7,531) (175,124)
27 77 0 (1,970) (3,065) (4,903) (9,938) (53,238) (10,260) (195,322)
28 78 0 (2,197) (3,418) (5,469) (11,084) (64,322) (13,006) (219,412)
29 79 0 (2,468) (3,840) (6,144) (12,452) (76,774) (15,766) (247,630)
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
30 80 0 (2,786) (4,334) (6,934) (14,054) (90,828) (18,539) (280,223)
31 81 0 (3,153) (4,904) (7,846) (15,903) (106,731) (21,324) (317,450)
32 82 0 (3,571) (5,555) (8,889) 28
(18,015) (124,746) (24,118) (359,583)
0 (500,837) 220,500

29. Smith v. Smith
Wife's Retirement Savings
3/31/2011
Defined Contribution Plans & IRAs
Allocation: 100% 0% 25% 35% 40% Money Purchase Pension Plan #XY-9876 140,000
See MBS Lines
Balance at Divorce: 854,500 0 213,625 299,075 341,800 Retirement Savings Plan #JK-6543 550,000
Investment Type: Cash Fixed Inc. Fixed Inc. Equities IRA #02-3456 0
17-24
Investment Vehicle: Average 12 Mo. C.D. U.S. Treas. Bond Fund Stock Avg. IRA II #98-7654 91,500
Return %: 5.7% 1.0% 4.5% 5.0% 7.0% 403b Plan #9876 38,000
IRA III #6543 35,000
854,500
Annual Cumulative Investment
Year Age Return Return Contribution Distribution Balance
1 51 0 9,613 14,954 23,926 48,493 48,493 15,000 0 917,993
2 52 0 10,327 16,065 25,704 52,096 100,589 15,000 0 985,089
3 53 0 11,082 17,239 27,582 55,903 156,492 15,000 0 1,055,992
4 54 0 11,880 18,480 29,568 59,928 216,420 15,000 0 1,130,920
5 55 0 12,723 19,791 31,666 64,180 280,600 15,000 0 1,210,100
6 56 0 13,614 21,177 33,883 68,674 349,274 15,000 0 1,293,774
7 57 0 14,555 22,641 36,226 73,422 422,696 15,000 0 1,382,196
8 58 0 15,550 24,188 38,701 78,439 501,135 15,000 0 1,475,635
9 59 0 16,601 25,824 41,318 83,743 584,878 15,000 0 1,574,378
10 60 0 17,712 27,552 44,083 89,347 674,225 15,000 0 1,678,725
11 61 0 18,886 29,378 47,004 95,268 769,493 0 (75,000) 1,698,993
12 62 0 19,114 29,732 47,572 96,418 865,911 0 (140,000) 1,655,411
13 63 0 18,623 28,970 46,352 93,945 959,856 0 (140,000) 1,609,356
14 64 0 18,105 28,164 45,062 91,331 1,051,187 0 (140,000) 1,560,687
15 65 0 17,558 27,312 43,699 88,569 1,139,756 0 (140,000) 1,509,256
16 66 0 16,979 26,412 42,259 85,650 1,225,406 0 (140,000) 1,454,906
17 67 0 16,368 25,461 40,737 82,566 1,307,972 0 (140,000) 1,397,472
18 68 0 15,722 24,456 39,129 79,307 1,387,279 0 (140,000) 1,336,779
19 69 0 15,039 23,394 37,430 75,863 1,463,142 0 (140,000) 1,272,642
20 70 0 14,317 22,271 35,634 72,222 1,535,364 0 (140,000) 1,204,864
21 71 0 13,555 21,085 33,736 68,376 1,603,740 0 (140,000) 1,133,240
22 72 0 12,749 19,832 31,731 64,312 1,668,052 0 (140,000) 1,057,552
23 73 0 11,897 18,507 29,611 60,015 1,728,067 0 (140,000) 977,567
24 74 0 10,998 17,107 27,372 55,477 1,783,544 0 (140,000) 893,044
25 75 0 10,047 15,628 25,005 50,680 1,834,224 0 (140,000) 803,724
26 76 0 9,042 14,065 22,504 45,611 1,879,835 0 (140,000) 709,335
27 77 0 7,980 12,413 19,861 40,254 1,920,089 0 (140,000) 609,589
28 78 0 6,858 10,668 17,068 34,594 1,954,683 0 (140,000) 504,183
29 79 0 5,672 8,823 14,117 28,612 1,983,295 0 (140,000) 392,795
30 80 0 4,419 6,874 10,998 22,291 2,005,586 0 (140,000) 275,086
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
31 81 0 3,095 4,814 7,702 15,611 2,021,197 0 (140,000) 150,697
32 82 0 1,695 2,637 4,220 8,552 2,029,749 0 (140,000) 19,249
29 150,000 (3,015,000)

30. Smith v. Smith
Husband's Ability to Pay Support
3/31/11
(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) (O) (P) (Q)
+ - - - - + + + - + = - - = =
ABC & Military Defined Def. Benefit Federal
Employment Contribution Plans Social & State Net Living Annual Monthly
Earnings 401(k) Child Plans & Military Security Income Draws From Disposable Mortgage Expenses (Deficit) (Deficit)
Year Age 2.0% COLA FICA Deductions Alimony Support Draw Draw* 2.5% COLA Tax Investments Income or Rent 2.5% Inflation or Surplus or Surplus
1 51 215,000 (8,958) (15,000) (60,000) (38,400) 0 0 0 (28,315) 0 64,327 (28,354) (63,516) (27,542) (2,295)
2 52 217,150 (8,989) (15,000) (60,000) (25,200) 0 0 0 (27,781) 0 80,180 (28,354) (65,104) (13,278) (1,107)
3 53 190,000 (8,595) (15,000) (60,000) (25,200) 0 14,412 0 (24,319) 0 71,297 (28,354) (66,731) (23,788) (1,982)
4 54 191,900 (8,623) (15,000) (60,000) 0 0 14,412 0 (24,762) 0 97,927 (28,354) (68,400) 1,174 98
5 55 193,819 (8,651) (15,000) (60,000) 0 0 14,412 0 (25,570) 0 99,010 (28,354) (70,110) 546 46
6 56 195,757 (8,679) (15,000) (60,000) 0 0 14,412 0 (27,480) 0 99,010 (28,354) (71,863) (1,206) (101)
7 57 197,715 (8,707) (15,000) (60,000) 0 0 14,412 0 (28,297) 0 100,122 (28,354) (73,659) (1,890) (158)
8 58 199,692 (8,736) (15,000) (60,000) 0 0 14,412 0 (31,480) 0 98,888 (28,354) (75,501) (4,966) (414)
9 59 201,689 (8,765) (15,000) (60,000) 0 0 14,412 0 (32,360) 0 99,976 (28,354) (77,388) (5,766) (481)
10 60 203,706 (8,794) (15,000) (60,000) 0 0 14,412 0 (33,228) 0 101,096 (28,354) (79,323) (6,580) (548)
11 61 0 0 0 (60,000) 0 42,500 146,412 0 (29,534) 0 99,378 (28,354) (81,306) (10,281) (857)
12 62 0 0 0 0 0 42,500 146,412 0 (48,114) 0 140,798 (28,354) (83,338) 29,106 2,426
13 63 0 0 0 0 0 42,500 146,412 0 (49,101) 0 139,811 (28,354) (85,422) 26,035 2,170
14 64 0 0 0 0 0 42,500 146,412 0 (50,063) 0 138,849 (28,354) (87,558) 22,938 1,912
15 65 0 0 0 0 0 42,500 146,412 0 (50,999) 0 137,913 (28,354) (89,746) 19,813 1,651
16 66 0 0 0 0 0 42,500 146,412 0 (51,910) 0 137,002 0 (91,990) 45,012 3,751
17 67 0 0 0 0 0 42,500 146,412 18,000 (58,372) 0 148,540 0 (94,290) 54,250 4,521
18 68 0 0 0 0 0 42,500 146,412 18,450 (60,147) 0 147,215 0 (96,647) 50,568 4,214
19 69 0 0 0 0 0 42,500 146,412 18,911 (61,931) 0 145,892 0 (99,063) 46,829 3,902
20 70 0 0 0 0 0 42,500 146,412 19,384 (63,726) 0 144,570 0 (101,540) 43,030 3,586
21 71 0 0 0 0 0 42,500 146,412 19,869 (65,531) 0 143,250 0 (104,078) 39,171 3,264
22 72 0 0 0 0 0 42,500 146,412 20,365 (67,346) 0 141,931 0 (106,680) 35,251 2,938
23 73 0 0 0 0 0 42,500 146,412 20,874 (69,172) 0 140,615 0 (109,347) 31,267 2,606
24 74 0 0 0 0 0 42,500 146,412 21,396 (71,009) 0 139,300 0 (112,081) 27,219 2,268
25 75 0 0 0 0 0 42,500 146,412 21,931 (72,856) 0 137,987 0 (114,883) 23,104 1,925
26 76 0 0 0 0 0 42,500 146,412 22,480 (74,713) 0 136,678 0 (117,755) 18,923 1,577
27 77 0 0 0 0 0 42,500 146,412 23,042 (76,581) 0 135,372 0 (120,699) 14,673 1,223
28 78 0 0 0 0 0 42,500 146,412 23,618 (78,459) 0 134,070 0 (123,716) 10,354 863
2,006,427 (87,497) (150,000) (660,000) (88,800) 765,000 2,750,712 248,320 (1,383,157) 0 3,401,005 (425,304) (2,531,735) 443,966
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
30

31. Smith v. Smith
Net Worth Accumulation of Marital Assets
3/31/11
Net Worth Accumulation
Husband Wife
of Marital Assets
Estimated Estimated Estimated Estimated
Value Value Value Value
At Divorce At Death At Divorce At Death $2,500,000
Marital Residence Equity - 2% Appreciation 0 0 131,000 518,249 $2,087,424
New Home - 2% Appreciation 0 609,358 0 0
$2,000,000
Investment Assets 321,500 1,435,242 266,000 (359,583)
$1,500,000
Retirement Assets 657,328 42,824 854,500 19,249 $1,264,700
Other Assets & Debts 85,235 0 13,200 0 $1,064,063
W
N
h
$1,000,000
o
r
e
t
1,064,063 2,087,424 1,264,700 177,915
45.7% 92.1% 54.3% 7.9%
$500,000
$177,915
$0
At Divorce At Death
Husband's Total Marital Assets Wife's Total Marital Assets
2011 ANNUAL CONSULTANTS’ CONFERENCE  JUNE 8 – 11, 2011  SAN DIEGO BAYFRONT HILTON
31