How can a family law attorney determine whether a lifestyle analysis is needed in a divorce case? A suspicious spouse may be all that is needed to begin a lifestyle analysis; however, a more objective basis for undertaking the lifestyle analysis is preferred. This chapter discusses numerous red flags that may indicate hidden income, hidden assets, or other financial irregularities.
Discovery for the financial portion of the family law case can be time-consuming, particularly for cases involving high net worth spouses. There may be many accounts with a high volume of transactions, creating dozens of boxes of financial documents. Unfortunately, this process is a necessary part of family law cases, particularly if there are multiple sources of income, if the totality of the family’s assets is unknown, or if a number of the red flags discussed in Chapter 4 are present.