It seems obvious, but not always understood, that supporting two households is more expensive than one. Although everyone would like to “continue living in the manner to which we’ve become accustomed,” that may not be possible after divorce.  

The financial components of divorce involve knowing the couple’s assets, liabilities, income and expenses. Most of the information for assets, liabilities and income is readily available from third parties such as banks, mortgage companies, brokerage houses, employers, and others. But often the only information available for expenses is from the parties, and it is their assessment or estimate of expenses. If there are questions or disagreements about the expenses as listed by each party, it may be advisable to prepare a lifestyle analysis focusing on expenditures.  

A lifestyle analysis is a detailed review of financial records to understand the couple’s spending habits during the marriage. Often, expenses are viewed as discretionary, such as vacations and gifts, and non-discretionary, such as rent and groceries. This process demonstrates the average lifestyle a couple enjoyed during the marriage and highlights expenditures that may not be sustainable post-divorce. 

It is advisable to work closely with a financial expert who specializes in divorce proceedings and who is knowledgeable in lifestyle analyses. The lifestyle analysis ensures that both parties have a clear understanding of their expenses while married, and how their lifestyle may have to change after the divorce. Please let me know if you have any questions or need further assistance.