Filing for divorce is an exhaustive process, and it can quickly begin to feel like you’re being drowned in a flurry of forms. While these forms may seem arbitrary, they are immensely important to the financial health of divorcing women. After divorce, women’s household income dropped more than 40% - double that of men. When it comes time to complete financial affidavits and negotiate assets and liabilities, it’s more important than ever for women to protect their financial stability.
Financial documents used in divorce proceedings provide the court with the source information needed to help ensure each party walks away from the marriage with a fair and equitable settlement. When completing these financial documents, couples should include information from their tax returns, bank statements, and any investment and credit card accounts. Leaving information off these forms could impact child and spousal support calculations.
What is a Lifestyle Analysis?
A lifestyle analysis establishes the standard of living baseline for the length of a marriage. The information is used as an open exploration into the financial details of a couple’s joint assets.
The form also focuses on:
- Daily living expenses throughout the marriage
- Spending habits for each party
When sitting down to complete this financial disclosure, couples should prepare by having these important documents within reach:
- Financial statements for all accounts
- Tax returns for the past five years
- Recurring household expenses
- Credit reports
Is a Lifestyle Analysis Important?
A lifestyle analysis is required in some cases for important support calculations. It can be used to create a snapshot of a couple’s net worth and provide the court with details of what expenses, debts, and assets will look once the divorce is finalized.
Women must put their financial disclosures and expense reporting at the top of their divorce to-do list. A poor settlement agreement will make it difficult to move forward from a place of economic stability. The lifestyle analysis will be converted into a snapshot of each spouse’s lifestyle costs. You want the court to have the most accurate and complete picture of how much money is required to keep your standard of living balance after your divorce is finalized.
Considerate and Respectful Divorce Lawyers
Palmer Rodak & Associates can help you develop a strategy when you are ready to file for divorce. Don’t make assumptions about what you need to handle in your divorce. It’s best to know for sure.
Call us today at (760) 573-2223 to schedule a consultation, or you can use our online contact form to request more information.