The affidavit is a core financial element in the divorce process; it is the foundation from which all divorce settlements are built.
The financial affidavit is an itemized list of all income and expenses of the household, as well as the assets and liability of the marital estate. When it comes to writing them down on a piece of paper, it’s not easy as it might first seem. For most, it is not only a time consuming exercise, but it is difficult because of the intertwined financial and emotional aspects of your divorce. This makes it difficult to be objective and to get it finished.
Additionally, the fear of what the affidavit means can be paralyzing for some prospective divorcees. At VFP, we have experience working through these affidavits and our financial backgrounds allow us to cut to the chase and assist you in the completion of this exercise. Our experience working with clients on their budgeting, accounting, tax issues, and financial planning allow us to approach affidavits effectively.
A lifestyle analysis is done to allow the parties to understand the inflows and outflows of the marital estate pre- and post-separation. It establishes the party’s marital standard of living to be used as a benchmark. Lifestyle analysis is a tool to provide for a fair and equitable distribution when there are assets to support the lifestyle.
This analysis also provides the information required for: support requests, budgeting for during- and post-divorce living, and for settlement analysis.