Divorce Property Division and Alimony Needs Analysis - "Breakin' Up is Hard to Do" - Presentation at...

NATIONAL ASSOCIATION OF CERTIFIED VALUATION ANALYSTS INSTITUTE OF BUSINESS APPRAISERS

Breakin’ Up is Hard to Do: Dividing the Marital Estate

and Figuring Alimony

Robert Vance, CPA, CVA, ABV, CFF, CFP

Thursday, June 9, 2011 Matrimonial Litigation

2 0 1 1 A N N U A L C O N S U L T A N T S ’ C O N F E R E N C E Adversity Brings Opportunity Tomorrow’s Information Today

J U N E 8 – 1 1, 2 0 1 1 S A N D I E G O B A Y F R O N T H I L T O N~~~~



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Breakin’ Up is Hard to DoRobert Vance,

CPA, CVA, ABV, CFF, CFP

Thursday, June 9, 2011 Matrimonial Litigation

NATIONAL ASSOCIATION OF CERTIFIED VALUATION ANALYSTS INSTITUTE OF BUSINESS APPRAISERS



2011 ANNUAL CONSULTANTS’ CONFERENCE JUNE 8 – 11, 2011 SAN DIEGO BAYFRONT HILTON

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Breakin’ Up is Hard to Do: Dividing the Marital Estate and Figuring Alimony

D◦I◦V◦O◦R◦C◦EWhat Can You Do?• Identify

– Tax Returns– Account Statements– Creative (NOL C/F, Dissipation)

• Classify– Marital v. Separate– Transmutation, Commingling

• Quantify– Value a Business– Value a Pension


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D◦I◦V◦O◦R◦C◦EWhat Can You Do?• Propose a Division• Figure Alimony Need & Ability to Pay


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Dividing the Marital Estate Supporting Documentation•General - 5 Years of business & personal tax returns, with W-2s•Marital Residence - Real estate appraisal•Mortgage - Payoff or monthly statement•Checking/Savings Accounts – 24-48 months of bank statements checks•Investment Accounts - 24-48 months of monthly/quarterly statements•Defined Benefit Pension - Vested benefit statement & plan document•Defined Contrib. Plan/401(k) Savings Plan, etc. - 24-48 months of statements•Stock Options - Vested & unvested grant statement & plan document•IRA - 24-48 months of monthly/quarterly statements


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Dividing the Marital Estate Supporting Documentation•Vehicles - NADA valuation from Internet•Other Personal Property - List & estimates from parties; appraisal Small Business - Business valuation from qualified expert•Credit Cards - 24-48 months of monthly statements•Dissipation of Marital Assets - Receipts, canceled checks, CC statements, depo. excerpts, etc.•Electronic file copies, including passwords - Quicken and QuickBooks•Subpoena to all banks that a spouse may use•Request the entire loan file, including personal financial statements (“PFS”) and loan applications


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The “Marital Balance Sheet” Factors to Consider•Spouses’ desire for a particular asset•Practicality, legality or necessity of one spouse owning an asset or owing a debt•Future income earnings from an asset•Future earning capacity of each spouse•Concept of offset•Attorney’s request for an unequal division


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Smith v. SmithMarital Balance Sheet

Child or

Separate

No. Description Title FMV Debt Equity Account Marital Husband Wife Notes

REAL ESTATE

1

2

3

4

5

6

CASH & INVESTMENTS

7

8

9

10

11

12

13

14

15

16

17

RETIREMENT

18

19

20

21

22

23

24

25

PERSONAL PROPERTY

26

27

28

29

30

OTHER DEBTS

30

31

32

TOTALS 0 0 0 0 0 0 0

#DIV/0! #DIV/0!

3/31/11Proposed Division


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Construction

1.Excel2.Numbered lines3.Numbered pages4.Group asset and debt categories such as “Real Estate” and “Retirement”5.Last 4 digits of account #6.List debts with secured assets showing the net equity7.Display property claimed as separate in whole or in part so as to establish the claim


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Construction

8.Display the proposed division of each and every item along with the total net percentage to each spouse9.Offset the present value of a pension10.Offset the fair market value of a small business with other assets


12


Related Issues & Analyses for the MBS

•Present Valuing a Defined Benefit Plan•Dissipation Analysis


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Smith v. SmithDefined Benefit Pension Valuation3/31/11

Case InformationDate of Valuation 3/31/2011 Date of Marriage 1/31/1993Date of Preparation 3/31/2011 Years of Marriage 18.2

Plan Information

Employer ABC Corporation Date of Retirement 4/1/2020Payout Method Straight Life Annuity Plan Name ABC Corp. Employee's Pension Plan

Participant InformationParticipant John Smith Date of BirthSex M Age at Valuation DateRace W Vested PercentageDate of Hire 4/2/1990 Years of Service

Calculations NotesMonthly retirement benefit $4,961 a.

Retirement age used in this calculation 60.0

Life expectancy at valuation date (1) 28.2 b.Number of years to retirement age (deferral period) 9.0 c.Years of life expectancy beyond retirement age (payout period) 19.2 d. b. - c. = d.

Discount rate for payout period (2) 4.50% e.Present value of monthly benefits at retirement date 764,473 f. Present value of a.

discounted with e.Discount rate for deferral period (2) 4.50% g.Expected value of retirement benefits at valuation date 514,417 h. Present value of f.

discounted with g.Ratio of total benefits earned during marriage 86.7% i. Years of marriage /

years of serviceMarital value of retirement benefits $445,828 j. h. x i. = j.

2) Derived from Federal Reserve Statistical Release; 5 Year average of 20 Year, U.S. Government Securities, Treasury Constant Maturities

3/27/196051.0100.0%21.0

1) Life Expectancy Tables: "United States Life Tables, 2006", National Vital Statistics Reports, Vol. 58, No. 21, June 28, 2010, National Center for Health Statistics; Life Table for white males.


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Dissipation

Dissipation: “The use of an asset for an illegal or inequitable purpose, such as a spouse’s use of community property for personal benefit when a divorce is imminent.”

Black’s Law Dictionary


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Tennessee: “Ward Factors”

The Trial Court must consider:

1.Whether the evidence presented at trial supports the alleged purpose of the various expenditures; and if so, 2.Whether the alleged purpose equates to dissipation under the circumstances

a. The typicality of the expenditure to the marriageb. The benefactor of the expenditure, i.e., it is primarily benefited

the marriage or the sole dissipating spouse c. The proximity of the expenditure to the breakdown of the

marriage; and the amount of the expenditured. The amount of the expenditure


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Smith v. SmithDissipation of Marital Assets by Husband

Clothing CasinoCheck & Dept. Meals & Loans to Athletic ATM Cosmetic

Date Num Description Memo Totals Travel Stores Ent. G'friend Jewelry Misc. Tickets Cash Medical

10/1/05 Refinance of H's Car Per H's Depo 0.0010/1/05 Disney World Trip H's Answers to Interrog. 5,000.00 5,000.00

10/13/05 1032 Sports Tickets Etc. Per Answers to Interrog. 2,000.00 2,000.0010/24/05 1009 Best Buy 43922.00 2,500.00 2,500.0011/1/05 1016 Check to Girlfriend 2,500.00 2,500.0011/1/05 Credit Union Loan #12345 Unknown purpose 0.0011/1/05 1045 Sports Tickets Etc. Per Answers to Interrog. 2,000.00 2,000.00

11/28/05 Abercrombie And Fitch 518.95 518.9511/28/05 Banana Republic 219.58 219.5812/6/05 Airline Per Answers to Interrog. 503.90 503.9012/6/05 Airline Per Answers to Interrog. 503.90 503.9012/6/05 Airline Per Answers to Interrog. 503.90 503.90

12/20/05 1053 Check to Girlfriend 415.00 415.0012/27/05 Miguelas Clothing Girlfriend 692.65 692.6512/29/05 Miguelas Clothing Girlfriend 127.00 127.001/3/06 Airline 915.14 915.141/3/06 Airline Chicago trip 915.14 915.142/15/06 Cosmetic Dentist Inc. 5,000.00 5,000.002/15/06 Hair Plugs R Us Per H's Admission 10,200.00 10,200.002/22/06 1123 Check to Girlfriend 360.00 360.004/10/06 5135 Big Law Firm 5,000.00 5,000.004/22/06 Billabong Cabazon 166.95 166.955/10/06 Victoria's Secret 127.28 127.285/11/06 Barbie Live Per Answers to Interrog. 135.55 135.555/12/06 Atm Cash Withdrawal 402.00 402.005/12/06 Ticketmaster Per Answers to Interrog. 1,021.55 1,021.555/18/06 Best Buy 924.20 924.205/19/06 Girlfriend's Diamond Ring Per H's Depo 20,000.00 20,000.005/20/06 ABC Marina Per Answers to Interrog. 175.26 175.265/30/06 Marriott Hotels LA 578.28 578.286/8/06 Atm Cash Withdrawal 400.00 400.006/9/06 1130 Cash 1,300.00 1,300.006/9/06 Infinity Per Answers to Interrog. 0.007/10/06 Gap 411.85 411.857/10/06 Victoria's Secret 343.05 343.058/9/06 Credit Union Loan #4567 Unknown purpose 0.008/17/06 Over-the-counter Withdrawal 6,000.00 6,000.009/8/06 1283 Cash 800.00 800.00

10/16/06 Toyota Per Answers to Interrog. 0.0011/22/06 Atm Cash Withdrawal 400.00 400.00

Totals 76,434.56 5,901.47 3,333.79 6,998.10 3,275.00 20,000.00 7,500.00 4,924.20 9,302.00 15,200.00

3/31/11Girlfriend Expenses


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Case Study – The Smiths PersonalHusband - (“money spouse”) – airline pilot – age 51Wife - (“non-money spouse”) – office worker – age 51Children, ages 15 and 1318 year marriage Major AssetsMarital Residence in TN with 20 years on the mortgageRental House in D.C. areaH – Defined Benefit PlanH – Military Retirement


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Smith v. SmithMarital Balance Sheet - Round 1

Child or

Separate


REAL ESTATE

1 Rental Property-1234 Maple Cove, D.C. J 200,000 Appraisal dated 11/30/10; listed for sale

2 Estimated Sales Comm. on Rental Prop. Sale J (24,000) Estimated

3 Estimated Income Tax on Rental Property Sale J (35,000) 141,000 141,000 70,500 70,500 Estimated

4 Marital Residence-4567 Main St., TN J 250,000 Appraisal dated 12/15/10; listed for sale

5 Marital Residence-Mortgage #05-227 J (119,000) 131,000 131,000 131,000 Statement dated 2/28/11

CASH & INVESTMENTS

6 Checking Account #5689 H 2,500 2,500 2,500 2,500 Statement dated 2/28/11

7 Checking Account #9876 W 3,500 3,500 3,500 3,500 Statement dated 2/28/11

8 Savings Account #1234 J 11,500 11,500 11,500 11,500 Statement dated 2/28/11

9 ABC Corporation Stock-200 shr H 20,000 20,000 20,000 20,000 Statement dated 2/28/11

10 Amer. Century I #3698 W 20,000 20,000 20,000 20,000 Statement dated 2/28/11

11 Amer. Century-Money Market #5678 J 31,000 31,000 31,000 31,000 Statement dated 2/28/11

12 Amer. Century-II #6543 J 36,000 36,000 36,000 36,000 Statement dated 2/28/11

13 Jones Fund #1478 J 7,000 7,000 7,000 7,000 Statement dated 2/28/11

14 Janus-Wordwide #9998 J 2,000 2,000 2,000 2,000 Statement dated 2/28/11

15 Janus-Twenty #8889 J 9,000 9,000 9,000 9,000 Statement dated 2/28/11

16 eTrade Account #2589 H 4,000 4,000 4,000 4,000 Statement dated 2/28/11

17 Aviation Manufacturing Inc.-30% Int. H 300,000 300,000 300,000 300,000 Per Valuation performed by FVS, PLC



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RETIREMENT

18 ABC Co. Pension Plan #AB-123 H 514,417 514,417 (68,589) 445,828 445,828 PV of future benefits as of 3/31/11

19 Military Pension Plan H 190,000 190,000 (20,000) 170,000 170,000 PV of future benefits as of 1/31/11

20 Money Purchase Pension Plan #XY-9876 H 140,000 140,000 140,000 140,000 Statement dated 2/28/11

21 Retirement Savings Plan #JK-6543 H 550,000 550,000 550,000 275,000 275,000 Statement dated 2/28/11

22 IRA #02-3456 H 11,000 11,000 11,000 11,000 Statement dated 2/28/11

23 IRA II #98-7654 H 122,000 122,000 122,000 122,000 Statement dated 2/28/11; 25% / 75% Split

24 403b Plan #9876 W 38,000 38,000 38,000 38,000 Statement dated 2/28/11

25 IRA III #6543 W 35,000 35,000 35,000 35,000 Statement dated 2/28/11

PERSONAL PROPERTY

26 1992 Mercedes J 12,000 12,000 12,000 12,000 NADA Average retail value as of 1/31/11

27 1999 Toyota W 3,200 3,200 3,200 3,200 NADA Average retail value as of 1/31/11

28 2003 Chevrolet PU Truck H 8,800 8,800 8,800 8,800 NADA Average retail value as of 1/31/11

29 Personal Property J 20,000 20,000 20,000 10,000 10,000 H & W Estimate

30 Husband's Dissipation of Marital Assets H 76,435 76,435 76,435 76,435 Per Forensic Analysis

OTHER DEBTS

30 Visa #4529 J (4,000) (4,000) (4,000) (4,000) Statement dated 2/28/11

31 Amex #1234 W (8,500) (8,500) (8,500) (8,500) Statement dated 2/28/11

32 Discover #6549 W (9,500) (9,500) (9,500) (9,500) Statement dated 2/28/11

TOTALS 2,617,352 (200,000) 2,417,352 (88,589) 2,328,763 1,544,563 784,200

66.3% 33.7%


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Smith v. SmithMarital Balance Sheet - Round 2

Child or

Separate


REAL ESTATE

1 Rental Property-1234 Maple Cove, D.C. J 200,000 Appraisal dated 11/30/10; listed for sale

2 Estimated Sales Comm. on Rental Prop. Sale J (24,000) Estimated

3 Estimated Income Tax on Rental Property Sale J (35,000) 141,000 141,000 70,500 70,500 Estimated

4 Marital Residence-4567 Main St., TN J 250,000 Appraisal dated 12/15/10; listed for sale

5 Marital Residence-Mortgage #05-227 J (119,000) 131,000 131,000 131,000 Statement dated 2/28/11

CASH & INVESTMENTS

6 Checking Account #5689 H 2,500 2,500 2,500 2,500 Statement dated 2/28/11

7 Checking Account #9876 W 3,500 3,500 3,500 3,500 Statement dated 2/28/11

8 Savings Account #1234 J 11,500 11,500 11,500 11,500 Statement dated 2/28/11

9 ABC Corporation Stock-200 shr H 20,000 20,000 20,000 20,000 Statement dated 2/28/11

10 Amer. Century I #3698 W 20,000 20,000 20,000 20,000 Statement dated 2/28/11

11 Amer. Century-Money Market #5678 J 31,000 31,000 31,000 31,000 Statement dated 2/28/11

12 Amer. Century-II #6543 J 36,000 36,000 36,000 36,000 Statement dated 2/28/11

13 Jones Fund #1478 J 7,000 7,000 7,000 7,000 Statement dated 2/28/11

14 Janus-Wordwide #9998 J 2,000 2,000 2,000 2,000 Statement dated 2/28/11

15 Janus-Twenty #8889 J 9,000 9,000 9,000 9,000 Statement dated 2/28/11

16 eTrade Account #2589 H 4,000 4,000 4,000 4,000 Statement dated 2/28/11

17 Aviation Manufacturing Inc.-30% Int. H 300,000 300,000 300,000 150,000 150,000 Per Valuation performed by FVS, PLC



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RETIREMENT

18 ABC Co. Pension Plan #AB-123 H 514,417 514,417 (68,589) 445,828 445,828 PV of future benefits as of 3/31/11

19 Military Pension Plan H 190,000 190,000 (20,000) 170,000 170,000 PV of future benefits as of 1/31/11

20 Money Purchase Pension Plan #XY-9876 H 140,000 140,000 140,000 140,000 Statement dated 2/28/11

21 Retirement Savings Plan #JK-6543 H 550,000 550,000 550,000 550,000 Statement dated 2/28/11

22 IRA #02-3456 H 11,000 11,000 11,000 11,000 Statement dated 2/28/11

23 IRA II #98-7654 H 122,000 122,000 122,000 30,500 91,500 Statement dated 2/28/11; 25% / 75% Split

24 403b Plan #9876 W 38,000 38,000 38,000 38,000 Statement dated 2/28/11

25 IRA III #6543 W 35,000 35,000 35,000 35,000 Statement dated 2/28/11

PERSONAL PROPERTY

26 1992 Mercedes J 12,000 12,000 12,000 12,000 NADA Average retail value as of 1/31/11

27 1999 Toyota W 3,200 3,200 3,200 3,200 NADA Average retail value as of 1/31/11

28 2003 Chevrolet PU Truck H 8,800 8,800 8,800 8,800 NADA Average retail value as of 1/31/11

29 Personal Property J 20,000 20,000 20,000 10,000 10,000 H & W Estimate

30 Husband's Dissipation of Marital Assets H 76,435 76,435 76,435 76,435 Per Forensic Analysis

OTHER DEBTS

30 Visa #4529 J (4,000) (4,000) (4,000) (4,000) Statement dated 2/28/11

31 Amex #1234 W (8,500) (8,500) (8,500) (8,500) Statement dated 2/28/11

32 Discover #6549 W (9,500) (9,500) (9,500) (9,500) Statement dated 2/28/11

TOTALS 2,617,352 (200,000) 2,417,352 (88,589) 2,328,763 1,064,063 1,264,700

45.7% 54.3%


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Figuring Reasonable Need and the Ability to Pay Alimony •Know your alimony code and case law•Property Division first•Alimony second•Single-month v. multi-year


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Smith v. SmithWife's Need for Support

Monthly Basis - 1st Year Only

Gross Monthly Income 3,333

Net Monthly Income After Taxes & Deductions 970

Child Support 3,200

Total Monthly Income 4,170

Mortgage (1,950)

Monthly Living Expenses (7,083)

Shortfall (4,863)

Alimony "Need" 5,000

Surplus 137

3/31/11


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Single-month flawed for these reasons:1.Represents a snapshot in time2.Gross understatement of income by self-employed and commission or bonus-dependant spouses3.Use of expense figures that appear to be historical, however the future expenses will inevitably be different due to new housing arrangements, additional child care expenses, duplications, and INFLATION4.Failure to incorporate the use of investment earnings available from the divided property5.Failure to incorporate the use of retirement assets or pensions at retirement date or for use immediately if necessary6.Overstatement of monthly expenses after listing those ordered to pay as temporary support which may end


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The Need and the Ability to Pay Analysis •A simplified, lifetime financial plan covering all of the remaining years of each spouse’s life expectancy•A forward-looking projection•Standard of Living•Earning Capacity•If I had a dime for every time I heard the statement “business is way-off this year” during the pendency of a divorce, I would be a rich man


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Steps1.Calculate the remaining life expectancy of each spouse2.Allow for contributions to retirement plans and/or IRAs based on past practices3.Incorporate an investment rate of return on the non-retirement financial assets4.Factor in the receipt of child support5.Figure the new mortgage note or rent based on an approximation of the pre-divorce standard of living6.Analyze the personal living expenses – general ledger7.Calculate federal and state taxes on the projected earnings, other taxable incomes, itemized deductions and the tax consequences for paying/receiving alimony


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Smith v. SmithWife's Need for Support

(A) (B) (C) (D) (E) (F) (G) (H) (I) (K) (L) (M) (N) (O) (P) (Q)+ - - + + + + = - = - - = =

PersonalEmployment Social Federal Net Living Exp. Annual Monthly

Earnings Retirement Child Alimony Draws From Security Total Income Disposable Mortgage 2.5% (Deficit) (Deficit)Year Age 2.0% COLA FICA Deductions Support $5,000 Retirement 2.5% COLA Income Tax Income Prin & Int Inflation or Surplus or Surplus

1 51 40,000 (3,060) (15,000) 38,400 60,000 0 0 120,340 (10,297) 110,043 (23,400) (85,000) 1,643 1372 52 40,800 (3,121) (15,000) 25,200 60,000 0 0 107,879 (10,998) 96,881 (23,400) (87,125) (13,644) (1,137)3 53 41,616 (3,184) (15,000) 25,200 60,000 0 0 108,632 (11,445) 97,188 (23,400) (89,303) (15,515) (1,293)

4 54 42,448 (3,247) (15,000) 0 60,000 0 0 84,201 (11,836) 72,365 (23,400) (77,805) (28,841) (2,403)5 55 43,297 (3,312) (15,000) 0 60,000 0 0 84,985 (11,991) 72,994 (23,400) (79,750) (30,156) (2,513)6 56 44,163 (3,378) (15,000) 0 60,000 0 0 85,785 (12,086) 73,698 (23,400) (81,744) (31,446) (2,621)7 57 45,046 (3,446) (15,000) 0 60,000 0 0 86,600 (13,243) 73,358 (23,400) (83,788) (33,830) (2,819)8 58 45,947 (3,515) (15,000) 0 60,000 0 0 87,432 (15,647) 71,785 (23,400) (85,883) (37,497) (3,125)9 59 46,866 (3,585) (15,000) 0 60,000 0 0 88,281 (15,705) 72,576 (23,400) (88,030) (38,853) (3,238)

10 60 47,804 (3,657) (15,000) 0 60,000 0 0 89,147 (15,704) 73,443 (23,400) (90,230) (40,188) (3,349)11 61 0 0 0 0 60,000 75,000 0 135,000 (29,303) 105,697 (23,400) (92,486) (10,189) (849)12 62 0 0 0 0 0 140,000 0 140,000 (30,559) 109,441 (23,400) (94,798) (8,757) (730)13 63 0 0 0 0 0 140,000 0 140,000 (30,430) 109,570 (23,400) (97,168) (10,999) (917)14 64 0 0 0 0 0 140,000 0 140,000 (30,259) 109,741 (23,400) (99,597) (13,256) (1,105)15 65 0 0 0 0 0 140,000 0 140,000 (30,041) 109,959 (23,400) (102,087) (15,529) (1,294)16 66 0 0 0 0 0 140,000 0 140,000 (29,775) 110,225 (23,400) (104,640) (17,815) (1,485)17 67 0 0 0 0 0 140,000 15,000 155,000 (33,028) 121,972 (23,400) (107,256) (8,684) (724)18 68 0 0 0 0 0 140,000 15,375 155,375 (32,927) 122,448 (23,400) (109,937) (10,889) (907)19 69 0 0 0 0 0 140,000 15,759 155,759 (32,782) 122,977 (23,400) (112,685) (13,108) (1,092)20 70 0 0 0 0 0 140,000 16,153 156,153 (32,591) 123,562 (23,400) (115,502) (15,341) (1,278)21 71 0 0 0 0 0 140,000 16,557 156,557 (32,351) 124,206 0 (118,390) 5,816 48522 72 0 0 0 0 0 140,000 16,971 156,971 (32,431) 124,540 0 (121,350) 3,191 26623 73 0 0 0 0 0 140,000 17,395 157,395 (32,470) 124,926 0 (124,384) 542 4524 74 0 0 0 0 0 140,000 17,830 157,830 (32,466) 125,365 0 (127,493) (2,128) (177)25 75 0 0 0 0 0 140,000 18,276 158,276 (32,415) 125,861 0 (130,680) (4,820) (402)26 76 0 0 0 0 0 140,000 18,733 158,733 (32,316) 126,417 0 (133,947) (7,531) (628)27 77 0 0 0 0 0 140,000 19,201 159,201 (32,165) 127,036 0 (137,296) (10,260) (855)28 78 0 0 0 0 0 140,000 19,681 159,681 (31,959) 127,723 0 (140,729) (13,006) (1,084)29 79 0 0 0 0 0 140,000 20,173 160,173 (31,693) 128,481 0 (144,247) (15,766) (1,314)30 80 0 0 0 0 0 140,000 20,678 160,678 (31,364) 129,314 0 (147,853) (18,539) (1,545)31 81 0 0 0 0 0 140,000 21,195 161,195 (30,969) 130,225 0 (151,549) (21,324) (1,777)32 82 0 0 0 0 0 140,000 21,724 161,724 (30,504) 131,220 0 (155,338) (24,118) (2,010)

437,989 (33,506) (150,000) 88,800 660,000 3,015,000 290,703 4,308,986 (823,752) 3,485,234 (468,000) (3,518,072) (500,837)

3/31/11


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Smith v. Smith Checking Account #5689 0

Wife's Investment Savings Checking Account #9876 3,500

Savings Account #1234 0ABC Corporation Stock-200 shr 0

Allocation: 100% 0% 25% 35% 40% American Century Accounts 20,000Balance at Divorce: 45,500 0 11,375 15,925 18,200 Jones Fund #1478 7,000Investment Type: Cash Fixed Inc. Fixed Inc. Equities Janus-Wordwide #9998 2,000Investment Vehicle: Average 12 Mo. C.D. U.S. Treas. Bond Fund Stock Avg. Janus-Twenty #8889 9,000Return %: 5.7% 1.0% 4.5% 5.0% 7.0% eTrade Account #2589 4,000

45,500

Net ProceedsAnnual Cumulative Surplus After Sale of Investment

Year Age Return Return Draws or Deficit Rental Prop. Balance

1 51 0 512 796 1,274 2,582 2,582 1,643 49,7252 52 0 559 870 1,392 2,821 5,403 (13,644) 38,9023 53 0 438 681 1,089 2,208 7,611 (15,515) 25,5954 54 0 288 448 717 1,453 9,064 (28,841) (1,793)5 55 0 (20) (31) (50) (101) 8,963 (30,156) (32,050)

6 56 0 (361) (561) (897) (1,819) 7,144 (31,446) 70,500 5,1857 57 0 58 91 145 294 7,438 (33,830) 150,000 121,6498 58 0 1,369 2,129 3,406 6,904 14,342 (37,497) 91,0569 59 0 1,024 1,593 2,550 5,167 19,509 (38,853) 57,370

10 60 0 645 1,004 1,606 3,255 22,764 (40,188) 20,43711 61 0 230 358 572 1,160 23,924 (10,189) 11,40812 62 0 128 200 319 647 24,571 (8,757) 3,29813 63 0 37 58 92 187 24,758 (10,999) (7,514)14 64 0 (85) (131) (210) (426) 24,332 (13,256) (21,196)15 65 0 (238) (371) (593) (1,202) 23,130 (15,529) (37,927)16 66 0 (427) (664) (1,062) (2,153) 20,977 (17,815) (57,895)17 67 0 (651) (1,013) (1,621) (3,285) 17,692 (8,684) (69,864)18 68 0 (786) (1,223) (1,956) (3,965) 13,727 (10,889) (84,718)19 69 0 (953) (1,483) (2,372) (4,808) 8,919 (13,108) (102,634)20 70 0 (1,155) (1,796) (2,874) (5,825) 3,094 (15,341) (123,800)21 71 0 (1,393) (2,167) (3,466) (7,026) (3,932) 5,816 (125,010)22 72 0 (1,406) (2,188) (3,500) (7,094) (11,026) 3,191 (128,913)23 73 0 (1,450) (2,256) (3,610) (7,316) (18,342) 542 (135,687)24 74 0 (1,526) (2,375) (3,799) (7,700) (26,042) (2,128) (145,515)25 75 0 (1,637) (2,547) (4,074) (8,258) (34,300) (4,820) (158,593)26 76 0 (1,784) (2,775) (4,441) (9,000) (43,300) (7,531) (175,124)27 77 0 (1,970) (3,065) (4,903) (9,938) (53,238) (10,260) (195,322)28 78 0 (2,197) (3,418) (5,469) (11,084) (64,322) (13,006) (219,412)29 79 0 (2,468) (3,840) (6,144) (12,452) (76,774) (15,766) (247,630)30 80 0 (2,786) (4,334) (6,934) (14,054) (90,828) (18,539) (280,223)31 81 0 (3,153) (4,904) (7,846) (15,903) (106,731) (21,324) (317,450)32 82 0 (3,571) (5,555) (8,889) (18,015) (124,746) (24,118) (359,583)

0 (500,837) 220,500

3/31/2011

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Smith v. SmithWife's Retirement Savings

Defined Contribution Plans & IRAsAllocation: 100% 0% 25% 35% 40% Money Purchase Pension Plan #XY-9876 140,000Balance at Divorce: 854,500 0 213,625 299,075 341,800 Retirement Savings Plan #JK-6543 550,000Investment Type: Cash Fixed Inc. Fixed Inc. Equities IRA #02-3456 0Investment Vehicle: Average 12 Mo. C.D. U.S. Treas. Bond Fund Stock Avg. IRA II #98-7654 91,500Return %: 5.7% 1.0% 4.5% 5.0% 7.0% 403b Plan #9876 38,000

IRA III #6543 35,000854,500

Annual Cumulative InvestmentYear Age Return Return Contribution Distribution Balance

1 51 0 9,613 14,954 23,926 48,493 48,493 15,000 0 917,9932 52 0 10,327 16,065 25,704 52,096 100,589 15,000 0 985,0893 53 0 11,082 17,239 27,582 55,903 156,492 15,000 0 1,055,992

4 54 0 11,880 18,480 29,568 59,928 216,420 15,000 0 1,130,920

5 55 0 12,723 19,791 31,666 64,180 280,600 15,000 0 1,210,1006 56 0 13,614 21,177 33,883 68,674 349,274 15,000 0 1,293,7747 57 0 14,555 22,641 36,226 73,422 422,696 15,000 0 1,382,1968 58 0 15,550 24,188 38,701 78,439 501,135 15,000 0 1,475,6359 59 0 16,601 25,824 41,318 83,743 584,878 15,000 0 1,574,378

10 60 0 17,712 27,552 44,083 89,347 674,225 15,000 0 1,678,72511 61 0 18,886 29,378 47,004 95,268 769,493 0 (75,000) 1,698,99312 62 0 19,114 29,732 47,572 96,418 865,911 0 (140,000) 1,655,41113 63 0 18,623 28,970 46,352 93,945 959,856 0 (140,000) 1,609,35614 64 0 18,105 28,164 45,062 91,331 1,051,187 0 (140,000) 1,560,68715 65 0 17,558 27,312 43,699 88,569 1,139,756 0 (140,000) 1,509,25616 66 0 16,979 26,412 42,259 85,650 1,225,406 0 (140,000) 1,454,90617 67 0 16,368 25,461 40,737 82,566 1,307,972 0 (140,000) 1,397,47218 68 0 15,722 24,456 39,129 79,307 1,387,279 0 (140,000) 1,336,77919 69 0 15,039 23,394 37,430 75,863 1,463,142 0 (140,000) 1,272,64220 70 0 14,317 22,271 35,634 72,222 1,535,364 0 (140,000) 1,204,86421 71 0 13,555 21,085 33,736 68,376 1,603,740 0 (140,000) 1,133,24022 72 0 12,749 19,832 31,731 64,312 1,668,052 0 (140,000) 1,057,55223 73 0 11,897 18,507 29,611 60,015 1,728,067 0 (140,000) 977,56724 74 0 10,998 17,107 27,372 55,477 1,783,544 0 (140,000) 893,04425 75 0 10,047 15,628 25,005 50,680 1,834,224 0 (140,000) 803,72426 76 0 9,042 14,065 22,504 45,611 1,879,835 0 (140,000) 709,33527 77 0 7,980 12,413 19,861 40,254 1,920,089 0 (140,000) 609,58928 78 0 6,858 10,668 17,068 34,594 1,954,683 0 (140,000) 504,18329 79 0 5,672 8,823 14,117 28,612 1,983,295 0 (140,000) 392,79530 80 0 4,419 6,874 10,998 22,291 2,005,586 0 (140,000) 275,08631 81 0 3,095 4,814 7,702 15,611 2,021,197 0 (140,000) 150,69732 82 0 1,695 2,637 4,220 8,552 2,029,749 0 (140,000) 19,249

150,000 (3,015,000)

3/31/2011

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Smith v. SmithHusband's Ability to Pay Support

(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) (O) (P) (Q)+ - - - - + + + - + = - - = =

ABC & Military Defined Def. Benefit FederalEmployment Contribution Plans Social & State Net Living Annual Monthly

Earnings 401(k) Child Plans & Military Security Income Draws From Disposable Mortgage Expenses (Deficit) (Deficit)Year Age 2.0% COLA FICA Deductions Alimony Support Draw Draw* 2.5% COLA Tax Investments Income or Rent 2.5% Inflation or Surplus or Surplus

1 51 215,000 (8,958) (15,000) (60,000) (38,400) 0 0 0 (28,315) 0 64,327 (28,354) (63,516) (27,542) (2,295)2 52 217,150 (8,989) (15,000) (60,000) (25,200) 0 0 0 (27,781) 0 80,180 (28,354) (65,104) (13,278) (1,107)3 53 190,000 (8,595) (15,000) (60,000) (25,200) 0 14,412 0 (24,319) 0 71,297 (28,354) (66,731) (23,788) (1,982)4 54 191,900 (8,623) (15,000) (60,000) 0 0 14,412 0 (24,762) 0 97,927 (28,354) (68,400) 1,174 985 55 193,819 (8,651) (15,000) (60,000) 0 0 14,412 0 (25,570) 0 99,010 (28,354) (70,110) 546 466 56 195,757 (8,679) (15,000) (60,000) 0 0 14,412 0 (27,480) 0 99,010 (28,354) (71,863) (1,206) (101)7 57 197,715 (8,707) (15,000) (60,000) 0 0 14,412 0 (28,297) 0 100,122 (28,354) (73,659) (1,890) (158)8 58 199,692 (8,736) (15,000) (60,000) 0 0 14,412 0 (31,480) 0 98,888 (28,354) (75,501) (4,966) (414)9 59 201,689 (8,765) (15,000) (60,000) 0 0 14,412 0 (32,360) 0 99,976 (28,354) (77,388) (5,766) (481)10 60 203,706 (8,794) (15,000) (60,000) 0 0 14,412 0 (33,228) 0 101,096 (28,354) (79,323) (6,580) (548)11 61 0 0 0 (60,000) 0 42,500 146,412 0 (29,534) 0 99,378 (28,354) (81,306) (10,281) (857)12 62 0 0 0 0 0 42,500 146,412 0 (48,114) 0 140,798 (28,354) (83,338) 29,106 2,42613 63 0 0 0 0 0 42,500 146,412 0 (49,101) 0 139,811 (28,354) (85,422) 26,035 2,17014 64 0 0 0 0 0 42,500 146,412 0 (50,063) 0 138,849 (28,354) (87,558) 22,938 1,91215 65 0 0 0 0 0 42,500 146,412 0 (50,999) 0 137,913 (28,354) (89,746) 19,813 1,65116 66 0 0 0 0 0 42,500 146,412 0 (51,910) 0 137,002 0 (91,990) 45,012 3,75117 67 0 0 0 0 0 42,500 146,412 18,000 (58,372) 0 148,540 0 (94,290) 54,250 4,52118 68 0 0 0 0 0 42,500 146,412 18,450 (60,147) 0 147,215 0 (96,647) 50,568 4,21419 69 0 0 0 0 0 42,500 146,412 18,911 (61,931) 0 145,892 0 (99,063) 46,829 3,90220 70 0 0 0 0 0 42,500 146,412 19,384 (63,726) 0 144,570 0 (101,540) 43,030 3,58621 71 0 0 0 0 0 42,500 146,412 19,869 (65,531) 0 143,250 0 (104,078) 39,171 3,26422 72 0 0 0 0 0 42,500 146,412 20,365 (67,346) 0 141,931 0 (106,680) 35,251 2,93823 73 0 0 0 0 0 42,500 146,412 20,874 (69,172) 0 140,615 0 (109,347) 31,267 2,60624 74 0 0 0 0 0 42,500 146,412 21,396 (71,009) 0 139,300 0 (112,081) 27,219 2,26825 75 0 0 0 0 0 42,500 146,412 21,931 (72,856) 0 137,987 0 (114,883) 23,104 1,92526 76 0 0 0 0 0 42,500 146,412 22,480 (74,713) 0 136,678 0 (117,755) 18,923 1,57727 77 0 0 0 0 0 42,500 146,412 23,042 (76,581) 0 135,372 0 (120,699) 14,673 1,22328 78 0 0 0 0 0 42,500 146,412 23,618 (78,459) 0 134,070 0 (123,716) 10,354 863

2,006,427 (87,497) (150,000) (660,000) (88,800) 765,000 2,750,712 248,320 (1,383,157) 0 3,401,005 (425,304) (2,531,735) 443,966

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31

Smith v. SmithNet Worth Accumulation of Marital Assets3/31/11

Estimated Estimated Estimated EstimatedValue Value Value Value

At Divorce At Death At Divorce At Death

Marital Residence Equity - 2% Appreciation 0 0 131,000 518,249

New Home - 2% Appreciation 0 609,358 0 0

Investment Assets 321,500 1,435,242 266,000 (359,583)

Retirement Assets 657,328 42,824 854,500 19,249

Other Assets & Debts 85,235 0 13,200 0

1,064,063 2,087,424 1,264,700 177,915

45.7% 92.1% 54.3% 7.9%

Husband Wife

$1,064,063

$2,087,424

$1,264,700

$177,915

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

At Divorce At Death

Net Worth

Net Worth Accumulationof Marital Assets

Husband's Total Marital Assets Wife's Total Marital Assets

Date post:	04-Jul-2015
Category:	Economy & Finance
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