A lifestyle analysis is a multifaceted analytical tool that includes several detailed analyses and can be very helpful in marital dissolution engagements. It involves a more in-depth analysis than the financial a davits typically required in the divorce process.
A lifestyle analysis provides an overview of each party’s sources of income and expenses, historically and into the anticipated future, using the facts and circumstances unique to each particular case. The analysis pulls together all considerations and provides a visual representation of disposable cash and estimated expenses over the remaining life expectancy. Through illustration of the aggregate sources of income and expenses over time, one can discern which funds are actually required, and whether these funds are available to cover expenses, i.e., to maintain standard of living. The details in the analysis serve as verification of net worth (assets and liabilities), historical earnings, historical standard of living, and reasonable expenses going forward.