What does a financial analysis contain?

Every divorce case is unique with its own issues and circumstances.  Therefore, every financial analysis is unique.  The divorce financial analysis report contains many different parts.  Each analysis contains multiple scenarios demonstrating possible settlement options.  The number of scenarios presented will depend on the number and complexity of the financial factors being analyzed.

TABLE OF CONTENTS

This section shows exactly what is contained in that specific report and in what order it is presented.

ASSUMPTIONS

This section lists many of the facts specific to the case and reiterates that these are being factored into the analysis (length of the marriage, ages of the children, and anticipated retirement age, for example).  The assumptions section will also explain what inflation rate is being used, what rates of return on investments are being used, what tax brackets must be considered, as well as many other case-specific facts.

SCENARIO #1

This section usually contains the analysis of a settlement currently being proposed by one spouse of the divorcing couple.  In a majority of cases, when the proposal is projected out over 10, 20, or 30 years, it is easy to see through spreadsheets and graphs that it will not hold up over time.

Scenario #1 sample output (.pdf, 1.5MB)

SCENARIO #2

This section strives to correct the potential failings of Scenario #1 by beginning to change some of the variables of the first proposed settlement.  It lists the problems as well as the changes being made.  This scenario is often the counter settlement proposal from the other spouse.  Again, through spreadsheets and graphs it becomes clear whether or not the settlement will hold up long term.

Scenario #2 sample output (.pdf, 1.5MB)

SCENARIO #3

Scenario #3 and subsequent scenarios list the problems with the previous scenarios and the changes being made to correct them.  The process of modifying the variables continues in order to find settlements that will withstand the passage of time, appear fair to both spouses, and are acceptable to both sides.

Scenario #3 sample output (.pdf, 1.5MB)

CONCLUSION

If there are still issues that need to be addressed, they are discussed in this section which closes out the report.  All financial analysis reports are works in progress that continue to change and develop throughout the negotiating process.

Note:  Viewing of reports requires the ability to open .pdf files.  This can be accomplished by installing the latest version of Adobe Acrobat Reader which is available free by clicking the icon below.