AAML NJ Blog

By: Tasha Shadle, Founder and Wealth Management Advisor at Crossover Capital | AAML NJ Gold Sponsor

A Certified Divorce Financial Analyst® (CDFA®) can be an important person in the divorce process, as they deal with the financial aspect of the case. A CDFA® is able to shoulder some of the burden of the hefty workload taken on by family law attorneys, especially given that their specialty lies in fiscally critical manners that can be seriously complex and time consuming. In this article we’ll explore all of the ways that a CDFA® can be of help in divorce cases.

Financial Analysis and Documentation

• Asset and Debt Division: CDFAs® provide identification, classification, and valuation of marital and separate assets and debts. They can outline the division and help to see that the distribution is fair and equitable.

• Income and Expense Analysis: They analyze income streams and expenses of both parties, giving an exact picture about where the couple stands regarding their finances. This analysis is very important to define child support, spousal support, and other financial obligations.

Future Financial Planning

• Post-Divorce Financial Projections: CDFA® creates numerous financial projections to illustrate the long-term consequences of different divorce settlement options. They can also reflect how decisions made at divorce will impact the financial futures of both spouses when considering critical factors such as taxes, retirement, and living expenses.

• Tax Implications: They calculate and analyze the tax impact of the division of property, alimony, or other financial aspects that relate to divorce. This is to make sure that both parties understand what the assets they walk away with will be worth after taxes.

Expert Testimony

• Court Appearances: A CDFA® could testify before the court about the long-term financial ramifications of various settlement proposals. Their knowledge is highly relevant in explaining complicated financial matters to the judge, often a pivotal piece of the arrival at a just settlement.

Settlement Negotiation Support

• Mediation and Negotiation: CDFAs® will, at times, join attorneys in mediation or negotiation sessions to ensure that financial settlements made for the client are realistic and fair. They assist clients in the comprehension of the financial implications of alternatives, allowing the client to make more informed decisions.

Educating Clients and Providing Support

• Financial Education: CDFAs® provide education to the client regarding financial aspects of divorce, budgeting, managing credit, and retirement plans. This empowers the client to make informed decisions and to plan for their future.

• Emotional Support: Although not therapists per se, there is an element of emotional support provided in educating clients on the true financial facts of their situation, which can help reduce anxiety and uncertainty.

Benefits to Family Law Attorneys

By handling financial complexities, CDFAs® make it easier for family law attorneys to focus on legal strategies, negotiations, and client advocacy. As a result of such cooperation, clients may benefit from more efficient case management and lower legal costs through CDFAs®/attorney collaboration, not to mention better results in divorce settlements.

Essentially, the specialized financial knowledge of the CDFA® augments the legal work of family law attorneys to create a much less bumpy road during a divorce for both parties. 

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

In the ever-evolving practice area of family law, the introduction of artificial intelligence (AI) brings a host of advantages that revolutionize how legal professionals approach their work. These benefits are seen in several key areas, including document analysis, drafting initial documents, and conducting legal research. By leveraging AI, family law attorneys can experience increased efficiency, reduced time on repetitive tasks, and a boost in overall productivity.

Increased Efficiency and Productivity

By integrating AI into their practice, family law professionals can achieve a level of output that is difficult to match through traditional methods. The cumulative benefits of AI in document analysis, drafting, and research translate into several key advantages:

·       Reduced time on repetitive work: AI handles the mundane tasks that typically consume a significant portion of a lawyer’s time. This allows legal professionals to dedicate more time to high-value activities, such as strategizing, negotiating, and advocating for their clients.

·       Enhanced accuracy: AI minimizes human error in document analysis and legal research, ensuring that critical details are not overlooked. This leads to more precise and reliable legal work.

·       Improved client service: With AI taking on routine tasks, lawyers can offer more timely and personalized service to their clients. This not only improves client satisfaction, but also strengthens the lawyer-client relationship.

·       Competitive advantage: Law firms that adopt AI technology gain a competitive edge by delivering faster, more efficient, and cost-effective services. This positions them favorably in a market where clients increasingly demand value and efficiency.

Automated Document Analysis

One of the most time-consuming aspects of family law is managing and analyzing large volumes of documents. This process often involves summarizing lengthy documents, searching for specific information within extensive records, and identifying discrepancies between different documents. AI excels in automating these tasks by:

·       Summarizing lengthy documents: AI algorithms can quickly distill large documents into concise summaries, allowing lawyers to grasp the key points without wading through pages of text. This capability is especially valuable in divorce cases involving extensive correspondence, financial records, or court filings.

·       Searching within large volumes of documents: Traditional manual searches are labor-intensive and prone to human error. AI can rapidly scan through vast amounts of data to locate pertinent information, such as case precedents and relevant statutes. This reduces the time spent on tedious searches and ensures more accurate results.

·       Identifying discrepancies: Comparing multiple documents to find inconsistencies or contradictions can be painstaking. AI tools can automate this process, highlighting differences and potential issues that might otherwise be overlooked. This functionality is crucial in ensuring the accuracy and consistency of legal documents, such as prenuptial agreements, divorce settlements, and custody arrangements.

AI-Assisted Document Drafting

Drafting legal documents from scratch is a fundamental yet time-consuming task in family law. AI-driven software can assist by generating initial drafts of various documents, including:

·       Petitions and complaints: AI can create preliminary versions of petitions for divorce, child custody complaints, and other initial filings based on inputted case details. Lawyers can then review and refine these drafts, significantly reducing the time required to produce them.

·       Agreements and settlements: Whether drafting prenuptial agreements, property settlement agreements, or custody arrangements, AI tools can provide templates and initial drafts tailored to the specifics of the case. This automates the document creation process and ensures that all necessary elements are included.

·       Correspondence and motions: Routine communications and procedural motions can also be efficiently drafted by AI, freeing up lawyers to focus on more complex and strategic aspects of their cases.

Verified Legal Research

Family law attorneys frequently engage in legal research to support their cases. AI enhances this process by providing:

·       Immediate responses to legal questions: Instant AI-generated answers are procured from a legal knowledge base and verified by experienced lawyers. Answers are tailored to jurisdictions and linked to relevant case law and legislation

·       Verification of information: While AI can deliver rapid results, the ability to verify these findings is equally important. Advanced AI systems often include features that cross-reference information from multiple sources, ensuring the accuracy and reliability of the research.

In conclusion, the integration of AI in family law brings transformative benefits that enhance efficiency, accuracy, and productivity. AI empowers family law firms to focus on what truly matters—providing exceptional legal service to their clients.

By: Sydney Weber of Marcum | AAML NJ Gold Sponsor

• Normalization adjustments are an essential component of any business valuation. They are necessary to ensure that the operational results and financial position as reflected on the subject company's financial statements or tax returns accurately indicate the anticipated profit or loss on a going-forward basis. Valuation experts make normalization adjustments to the income statement to eliminate expenses that are non-recurring or unrelated to the business, as well as to properly account for expenses such as rent or officer compensation that may not be accurately reflected. Adjustments may also be made to the balance sheet in order to remove non-operating assets or adjust assets to fair market value. This article focuses on adjustments commonly made to the income statement. 

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• The first step in normalizing the income statement is to determine the unadjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA, a key indicator of the profitability of a business. To do so, all interest, tax, depreciation, and amortization expenses are added back to the business’s reported net income. Once these preliminary adjustments are complete, the normalization adjustments are made to reach normalized EBITDA.

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• Following are some of the more common income statement normalization adjustments: 

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• 1.     Reasonable Compensation: In closely-held businesses, the owner typically draws a salary that may be considered “discretionary”. If the business is a sole proprietorship, the owner does not receive a salary at all. To ensure the business’s normalized EBITDA is accurately represented, it is necessary to make an adjustment reflecting the market rate that would be paid to a non-owner providing the same services. In this adjustment, the officer’s compensation reported on the income statement is added back to net income, and the reasonable compensation determined by the valuation expert through industry research is deducted. This adjustment removes the impact caused by a business owner receiving profits as a salary. It ensures EBITDA is not overstated by reflecting the appropriate market rate of compensation for the owner’s services.

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• 2.     Discretionary Expenses: Adjustments need to be made for expenses paid through the business that are not essential to its operations. Generally, any expense that would not be necessary for a potential buyer to incur to maintain the business’s operations should be added back to the reported net income. The types of discretionary disbursements that are adjusted can vary depending on the nature of the business. They may include all or a portion of travel and auto, meals, entertainment, club dues, and credit card charges. Following discussions with the business owner, expenses may be deemed partially discretionary in certain circumstances. In this case, a percentage is often applied. Additionally, discretionary expenses that may not be immediately apparent to the valuation expert can usually be identified through discussions with the business owner. It is important to note that an expense that may be deductible for tax purposes could still be classified as discretionary for valuation purposes.

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• 3.     Rent Expense: When the real estate from which the business operates is owned by the business owner personally or through a related entity, the rent charged to the business may not be representative of the fair market, meaning the business is paying either more or less than would be paid to an independent third party. A real estate appraiser generally determines fair market rent. If the business pays an amount over fair market rent, the excess would be added back to net income. Conversely, the differential would reduce net income if the amount paid is below fair market rent.

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• 4.     Non-Recurring Income and Expenses: Any reported income or expenses that are not expected to recur in the future can skew EBITDA and should be adjusted. The adjustment for a non-recurring income or expense item would decrease or increase net income, respectively. Examples of non-recurring income and expenses include settlement fees for legal actions, one-time expenses for repairs or maintenance, income or loss from discontinued operations, and gains or losses on sales of assets or other investments.

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• Income statement normalization adjustments play a vital role in determining a business’s expected ongoing operational performance. These adjustments help ensure the conclusion of value is both reasonable and adequately supported.

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

Family law firms are faced with many challenges when serving their clients due to the arduous nature of resolving these sensitive legal matters. Attorneys have a responsibility to ensure that the process doesn’t cause any additional stress to vulnerable parties that may include children, conflicting caregivers, and spouses. To provide effective service, family law firms should make sure each minute is optimized effectively, focusing on the needs of their clients. Attorneys and law firm staff can implement 5 strategies throughout the life of a family law matter to manage a heavy workload, prioritize tasks, and increase productivity without sacrificing quality.

• Stay organized: There are many details and files to keep track of throughout a family law matter, which may include case and client information, historical files and documentation, correspondence including letters and emails with clients and other parties, and court forms, to name a few. Law firm staff need to have access to one centralized digital file that accounts for updates in real time. Dropbox, printed files in manila folders, or files stored on local drives all run the risk of being lost or becoming quickly outdated throughout the progression of the case. Legal technology that provides case and document management creates organization not only for the firm, but for the client service they provide. This is effectively demonstrated when records are easily accessible. For example, if a client calls requesting an immediate response or if you are at court and need to reference case details without printed documentation, centralized and mobile storage allows for timely action and quality service.

• Accurately and instantly keep track of your billable time: One of the most arduous administrative tasks for family law firms is legal time recording. This process is especially tedious and requires minute-by-minute recollection if done reactively or manually. Law firms can look to implement a system to simultaneously track time while working on a case, but they need to be careful that it doesn’t create additional work for other staff. While many software programs offer stopwatches or timers, a comprehensive legal practice management solution is most effective to ensure that legal time tracking instantly records across all key functions of a family law case.

• Automate administrative tasks: Sometimes, the most time-consuming functions for a family law matter do not include client and other party events like meetings or hearings, but consist of routine, but necessary, work such as creating correspondence, filling out forms, and sharing documents. It is necessary to eliminate double data entry and reduce the risk of input error for efficient production, and advances in legal technology allow firms to automatically and accurately populate case and client information. Reducing the time spent on filling out the Case Information Statement, Summons (Divorce), or Verified Complaint for Adoption, for example, allows staff to focus on other revenue- generating tasks such as responding to clients and creating invoices.

• Collaborate effectively: Clients and other parties contact firms frequently and through different channels to keep the case progressing. Secure file-sharing platforms optimize communication and ensure that sensitive documents are only viewed by authorized parties. Third-party storage and sharing systems like Dropbox or OneDrive create these vulnerabilities and are limited in functionality necessary in family law cases, like restricting access and requesting e-signatures. Legal file sharing and collaboration technology provides firms with the assurance that their information is safe, while clients can have the convenience and transparency of this secure storage.

• Make billing and invoice payments convenient: Family law firms that implement the above habits need to complete the case, not only with the resolution of the matter, but with the firm getting paid with a digital paper trail and in a timely matter. With family law practice management software that includes instant time recording, centralized accounting, and an online payment platform, the administrative work is reduced. Manual invoicing and processing payments is eliminated, creating opportunities for staff to focus on their existing clients or even new cases.

  When these timesaving practices are implemented, family law firms can ensure that they are efficient and productive. Client and employee satisfaction will increase when firms optimize their processes. This creates further opportunities for firms to increase their revenue and grow their business. To learn more about how legal technology can help your NJ family law firm, visit leap.us/new-jersey. 

By: Soberlink | AAML NJ Bronze Sponsor 

The Soberlink system is an advanced, portable solution for monitoring alcohol consumption, offering a blend of a high-quality breathalyzer and innovative features like facial recognition and tamper alerts. This enables detailed, real-time supervision of a person's alcohol intake throughout the day. 

For more than ten years, Soberlink has led the field of alcohol monitoring in Family Law, offering lawyers a reliable, evidence-backed method for handling alcohol-related issues. Its admissibility in child custody situations across the United States and Canada, coupled with its ability to offer Family Lawyers and Judges a trusted means of overseeing sobriety, has made it indispensable in protecting children from alcohol abuse.

Seth Nelson from Nelson Law Groureviews the value of Soberlink to him in reducing conflict, safeguarding children, and addressing or disproving allegations of alcohol misuse. Watch Review »

This detailed review provides an in-depth look at the Soberlink Device, explaining its operations and benefits for families navigating divorce.

The Soberlink System

Soberlink combines a handheld, professional breathalyzer with modern technology to measure, document, and communicate alcohol levels in users throughout their day. It's equipped with features to ensure the person tested is the actual user and to prevent any form of cheating.

Reagan Riddle of Armstrong Divorce & Family Law praises Soberlink for its technological edge in preventing result manipulation. Watch Review »

Soberlink's Advanced Reporting transforms testing data into a simple, color-coded calendar, making it easy to interpret test compliance at a glance.

Soberlink: How it Works

Utilizing Soberlink involves discreetly taking a breath alcohol test, which verifies the user's identity via facial recognition before sharing results instantly with predetermined contacts.

This system uniquely handles positive tests by initiating a Retest Cycle, ensuring accuracy by distinguishing between alcohol consumption and other sources of alcohol detection on breath, such as mouthwash.

Jeff Domen of Goranson Bain Ausley sees Soberlink as a game-changer for handling alcohol issues in divorces, emphasizing its simplicity for daily use and the accountability it provides to parents. Watch Review »

Pricing Details for Soberlink

To view Soberlink's pricing, visit their official pricing page. The system requires purchasing a device and a monthly monitoring service. Prices start at $299 for devices, with monthly plans beginning at $129.

Soberlink's programs cater to different needs: The Level 1 Program focuses on testing during parenting time, while the Level 2 Program requires daily testing. Each program offers Basic, Plus, or Premium plan options, varying in features and the number of recipients for test results.

Starting with Soberlink

Purchasing Soberlink is straightforward via their website. The process involves selecting a program, plan, device, and commitment level, followed by device purchase and completion of a monitoring agreement. This agreement, crucial for clarity and responsibility definition, distinguishes Soberlink from other self-monitoring options.

Soberlink in Divorce Contexts

Soberlink devices offer real-time alcohol monitoring, providing Family Courts with accurate evidence of sobriety, crucial in child custody decisions. It aids not just in proving sobriety but also in disproving false accusations of alcohol misuse, offering peace of mind and fairness in custody cases.

Soberlink shines in Family Law due to its non-intrusive monitoring, immediate result sharing, user-friendly software, and the reliability of its facial recognition and tamper detection technologies. Supporting Family Law professionals further, Soberlink provides comprehensive support, including AI-powered reporting, expert evaluations, and dedicated training, reinforcing its role in fostering decisions that are safe for children and equitable for all parties.

By: Zach Petersen of Marcum | AAML NJ Gold Sponsor

Imagine you are the owner of a famous and well-respected restaurant. In your employ are master chefs and culinary experts covering a range of different backgrounds and techniques. Among them are a saucier, creating various sauces used throughout the menu, and a pasta chef, responsible for imagining and delivering some of the menu’s entrees. There is also a pastry chef and a chocolatier, together creating beautiful and imaginative desserts. And, of course, you have a sommelier to select the perfect wines to pair with each dish.

Each night, the kitchen is tasked with providing a top-notch experience to the guests, with a menu that changes regularly. Every dish is thoughtful and well-executed. Each specialist works together to build a memorable experience and must know their role in relation to each other to deliver excellence.

Now imagine each dining experience is its own case, and you, as the owner, are the attorney responsible for delivering excellence to your customers (clients). You must direct your team and understand the capabilities and limitations of each member to produce an effective and cohesive approach.

Likewise, litigation can require several different experts in different fields to build the arguments necessary to prevail. Experts are necessary to review the facts, parse the technical requirements in their field, and provide an analysis or opinion based on their work. A chocolatier will not be qualified to present wine pairings for the guests in the same way that a financial expert cannot opine on the adequacy of manufacturing safeguards. Generally, professional standards expressly prohibit opinions on matters outside the expert’s scope. Although the expert may have a general understanding of how effective manufacturing safeguards can reduce overall risk to a business, they cannot be expected to deliver an opinion on what policies, procedures, and equipment are considered effective.

Depending on the facts of the case, much like our imaginary kitchen, several different experts may be needed to provide analyses within their specialties to provide a comprehensive and effective service to the client. Although a financial expert can certainly serve as your only expert if all relevant issues fall within the scope of that individual’s field of expertise, you should still consider carefully. Some issues may seem like concepts on which your expert can provide an opinion, but sometimes, they fall outside that scope of expertise or veer into legal determinations.

It is also vital that each expert is informed of their specific role for what they are being asked to do, even if the task is already within their field of expertise. If the kitchen has a theme for the evening, such as “An Evening in Tokyo," you probably wouldn’t want your pasta chef delivering authentic German spaetzle that night. Similarly, although a valuation expert can provide the value of a business under the fair market value standard, complete with a formalized report, if the jurisdiction governing the dispute only allows the use of the fair value standard or if valuation schedules would have sufficed for settlement purposes, the expert will have ultimately spent extra time developing valuation discounts or writing a report, to provide a conclusion of value that would not be appropriate for the client’s needs.

Experts, particularly financial experts, are a powerful tool for litigants and their attorneys. However, we, as experts, must be careful in providing opinions that are within the realm of our expertise. It is required, both from a legal standpoint and from the rules set forth by the associations we are members of. It is essential that experts, attorneys, and clients are all on the same page regarding what we can and cannot address. Being as specific as possible helps ensure our work is unambiguous, appropriate for the client's needs, and within the confines of our expertise and professional requirements.

So, next time you engage an expert or are engaged as an expert, make sure the expectations are clear to all parties, both verbally and in an engagement letter, as to what the expert is being asked to do. You’ll find better client outcomes and just might save everyone a headache.

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

Family law firms are faced with many challenges when serving their clients due to the arduous nature of resolving these sensitive legal matters. Attorneys have a responsibility to ensure that the process doesn’t cause any additional stress to vulnerable parties that may include children, conflicting caregivers, and spouses. To provide effective service, family law firms should make sure each minute is optimized effectively, focusing on the needs of their clients. Attorneys and law firm staff can implement 5 strategies throughout the life of a family law matter to manage a heavy workload, prioritize tasks, and increase productivity without sacrificing quality.

• Stay organized: There are many details and files to keep track of throughout a family law matter, which may include case and client information, historical files and documentation, correspondence including letters and emails with clients and other parties, and court forms, to name a few. Law firm staff need to have access to one centralized digital file that accounts for updates in real time. Dropbox, printed files in manila folders, or files stored on local drives all run the risk of being lost or becoming quickly outdated throughout the progression of the case. Legal technology that provides case and document management creates organization not only for the firm, but for the client service they provide. This is effectively demonstrated when records are easily accessible. For example, if a client calls requesting an immediate response or if you are at court and need to reference case details without printed documentation, centralized and mobile storage allows for timely action and quality service.

• Accurately and instantly keep track of your billable time: One of the most arduous administrative tasks for family law firms is legal time recording. This process is especially tedious and requires minute-by-minute recollection if done reactively or manually. Law firms can look to implement a system to simultaneously track time while working on a case, but they need to be careful that it doesn’t create additional work for other staff. While many software programs offer stopwatches or timers, a comprehensive legal practice management solution is most effective to ensure that legal time tracking instantly records across all key functions of a family law case.

• Automate administrative tasks: Sometimes, the most time-consuming functions for a family law matter do not include client and other party events like meetings or hearings, but consist of routine, but necessary, work such as creating correspondence, filling out forms, and sharing documents. It is necessary to eliminate double data entry and reduce the risk of input error for efficient production, and advances in legal technology allow firms to automatically and accurately populate case and client information. Reducing the time spent on filling out the Case Information Statement, Summons (Divorce), or Verified Complaint for Adoption, for example, allows staff to focus on other revenue- generating tasks such as responding to clients and creating invoices.

• Collaborate effectively: Clients and other parties contact firms frequently and through different channels to keep the case progressing. Secure file-sharing platforms optimize communication and ensure that sensitive documents are only viewed by authorized parties. Third-party storage and sharing systems like Dropbox or OneDrive create these vulnerabilities and are limited in functionality necessary in family law cases, like restricting access and requesting e-signatures. Legal file sharing and collaboration technology provides firms with the assurance that their information is safe, while clients can have the convenience and transparency of this secure storage.

• Make billing and invoice payments convenient: Family law firms that implement the above habits need to complete the case, not only with the resolution of the matter, but with the firm getting paid with a digital paper trail and in a timely matter. With family law practice management software that includes instant time recording, centralized accounting, and an online payment platform, the administrative work is reduced. Manual invoicing and processing payments is eliminated, creating opportunities for staff to focus on their existing clients or even new cases.

  When these timesaving practices are implemented, family law firms can ensure that they are efficient and productive. Client and employee satisfaction will increase when firms optimize their processes. This creates further opportunities for firms to increase their revenue and grow their business. To learn more about how legal technology can help your NJ family law firm, visit leap.us/new-jersey. 

By: LEAP | AAML NJ Silver Sponsor

Family law is continuously evolving due, in part, to shifts in societal attitudes, legal reforms, and changes in family dynamics. For NJ law firms specializing in family law, staying ahead in this ever-changing environment means being able to handle a wide array of sensitive issues—ranging from adoptions and divorces to cases of domestic violence—with efficiency and empathy. This is where legal practice management technology and automation can help revolutionize the way family law firms operate.

Automation creates efficiencies around the complexities of family law cases, and when utilizing legal practice management technology, it’s easier for lawyers to focus on what truly matters: their clients.

Let’s explore the features of legal automation, its benefits for family law firms, and how legal practice management technology is paving the way for the future of law firm efficiency.

Key Features of Automation and Legal Practice

Management Technology

Legal automation creates efficiencies for law firms, making it easier for attorneys and their support staff to manage their day-to-day activities. Legal practice management technology offers family law firms a suite of features tailored to the specific needs of managing sensitive and complex family law cases.

These features include:
Case Management: Organizes all family law case-related documents, communications, and information in one centralized location, facilitating easy access and management.

Client Communication Tools: Provides secure and efficient communication channels for attorneys and clients, ensuring confidentiality and timely exchanges of family law correspondence.

Document Automation and Management: Automates calculations and the creation of standard legal documents, saving time and reducing errors. It also helps in organizing and storing documents securely.

Time Tracking and Billing: Efficiently track billable hours and create accurate invoices so family law firms can enhance transparency and trust with their clients.

Calendar and Task Management: Helps in scheduling meetings, deadlines, and court dates, ensuring that critical tasks are not overlooked.

These key features of legal practice management technology improve the operational efficiency of family law firms and enhance the quality of service provided to clients.

The Benefits for Family Law Firms

The adoption of legal practice management technology with automation brings multiple benefits to family law firms, especially in handling cases related to adoption, child support, divorce, domestic violence, and family mediation. Here are some of the key advantages:

Enhanced Efficiency: By automating routine tasks and centralizing case information, family law attorneys can focus more on their client's needs rather than on administrative burdens.

Improved Data Accuracy: Automated document generation reduces the risk of human error, ensuring that legal filings and calculations are accurate and compliant with current laws.

Better Client Communication: Secure messaging platforms facilitate prompt and confidential client communication, fostering trust and satisfaction. Centralized Case Management: The ability to easily access and manage all aspects of a NJ family law case from a single platform helps in developing more effective case strategies.

Cost-Effectiveness: Reducing the time spent on administrative tasks and minimizing errors leads to lower operational costs and, potentially, more competitive pricing for clients.

For NJ family law cases, which often involve high emotions and sensitive situations, these benefits translate into more compassionate and efficient client service.

Setting a Standard for Family Law Legal Services

Legal practice management technology is not just changing the current operations within family law firms; it's setting the stage for a future where efficiency, accuracy, and client satisfaction are paramount. As these technologies evolve, family law firms will be able to handle cases more swiftly and with greater precision, offering tailored legal services aligned with unique family law circumstances.

The adoption of automation by family law firms represents a significant step forward in how legal services are delivered. By embracing these technologies, firms can enhance their operational efficiency, improve the accuracy of their work, and provide superior client service. It’s not just about keeping up with the times; it’s about setting a new standard and meeting the expectations of family law legal services that clients are looking for. 

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Wilmington Trust’s Meghan Shue, Head of Investment Strategy & Portfolio Construction, and Christy Watkins, Regional Investment Advisory Lead, discuss how women face unique challenges that highlight the importance of making planning a priority. They explore the characteristics that make women adept investors, and where opportunity exists for women to fulfill their potential as captains of their financial destinies, which is particularly important after divorce.

Read the full article: Women & Investing: A Stronger Grip on Their Financial Futures (wilmingtontrust.com)

Contact Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com to discuss ways Wilmington Trust can help your clients successfully navigate transition.

By: Nicholas Fecci | AAML NJ Gold Sponsor Marcum

Marital Lifestyle (Analysis):

The marital lifestyle or the standard of living experienced when a couple resides together during marriage can be a crucial element in divorce proceedings. Financially, how did the couple live while they were married? What amount and type of income supports this lifestyle? How much alimony/child support should be awarded to sustain this lifestyle? These questions can be answered by engaging a forensic accountant to perform a lifestyle analysis.

 

What is a Lifestyle Analysis, and what does it provide?

A Lifestyle Analysis is a thorough examination of the standard of living that a couple enjoyed during their marriage. This analysis is crucial to help establish a factual basis for the couple’s spending and saving patterns and overall financial status. Forensic accountants can paint a factual picture of the marital lifestyle and expected future spending through a diligent review of historical financial records such as bank, credit card and investment account statements, as well as tax returns, property records, and loan documents, to name a few.

By reviewing the above documents as well as interviewing the spouse who manages the financials (if that is a feasible option), a Lifestyle Analysis can play a crucial role in the divorce process, especially when it comes to the calculation of alimony/child support, uncovering hidden assets and identifying various sources of income.

 

Spending:

A look into historical spending from a party’s marriage can provide a benchmark for the future spending of each person. A review of the bank statements allows a forensic accountant to categorize individual transactions into the income and expense categories identified from the Case Information Sheet, taking into consideration the following:

·        Spending of the parties both individually and jointly.

·       Recurring and non-recurring expenses.

·       Dissipation of marital assets (depletion of marital funds), if any.

·       All of the above considerations can paint a picture of the amount required to maintain a similar standard of living post-divorce to help the parties and their attorneys determine alimony and/or child support payments.

 

Hidden Assets:

During a divorce, it is not unusual for one party to attempt to conceal certain assets from the equitable distribution process. Through a review of bank statements provided, forensic accountants can uncover various hidden assets by analyzing transactions within the account statements, such as the following:

·       Transfers to additional bank/investment accounts not known by one of the parties.

·       Payments to loan institutions uncovering additional assets purchased during the marriage.

·       Transfers of money to corporations or entities for investment in their business.

·       Uncovering hidden assets is essential to ensure a fair and equitable division of property during a divorce. Even though parties are required to be transparent in their financial disclosure, a thorough lifestyle analysis is an essential step in ensuring that all assets are on the table and considered during divorce proceedings.

 

Other Sources of Income / Earning Habits:

The Lifestyle Analysis can also provide insight into additional sources of income that may not have been disclosed, including but not limited to the following:

·       Spending in excess of reported income without accumulating debt can indicate additional, undisclosed sources of income or assets.

·       Review of the income tax returns can identify investment income such as interest, dividends, and capital gains. These income sources can also be identified and confirmed through analysis of bank statements.

·       Direct deposits from additional employment unknown to one party.

 

Once the entirety of income is disclosed there is a clearer picture of the true funds required to support the standard of living of the parties.

The above discussion is a glimpse of why a well-prepared lifestyle analysis can be essential in ensuring all income and expenses are identified during divorce proceedings. It helps to ensure the likelihood of an equitable settlement by revealing any discrepancies between the lifestyle maintained and the income and assets reported. It can also help the court make informed decisions based on the true economic partnership of the marriage, ensuring the dissolution process is not only legally sound but also adheres to the principles of fairness and equity for both individuals as they transition to their new, independent lives.