If you’re a divorce lawyer practicing family law anywhere in the U.S., you probably feel like you need a degree in accounting or tax law.
Figuring out the best financial options for a client going through a divorce involves a decent knowledge of U.S. Tax Code, the know-how to perform present and future value calculations and model various allocation scenarios, and a crystal ball that can predict future tax rates. If that’s not downright over the top, it is often over the heads of you and your smartest associates and paralegals.
Divorce Financial Software makes the job easy. At a basic level, this divorce settlement and planning software does exactly that: it simplifies financial modeling for divorces to facilitate and support your professional advice and counsel.
For one thing, you can see clearly and precisely what the real-world impact of a given settlement will be. The software is smart enough to show you five settlement scenarios simultaneously, and it’s sophisticated enough to only show deductions permitted in a given party’s selected state. Not only will it present favorable alimony v. child support combination for the paying spouse (a huge boon if he or she is your client), it will also show you how the receiving party will fare.
But that’s just the beginning of the power of our divorce planning software. Recent case law has ruled that ‘ability to pay’ and ‘lifestyle needs of the alimony claimant’ are the two primary factors in calculating alimony payments. If you know the alimony claimant’s budget (and many states do not specify a formula for computing alimony), the software is capable of going backwards—and conducting a reverse calculation. The resulting report sets forth 5 alimony scenarios and their affect on taxes, child support payments, and other variables.
Divorce Financial Software also compares a stream of payments with the alternative: a lump sum settlement. With party’s’ current and future tax brackets and the money discount factor, you are able to present side-by-side options for a periodic alimony v. a lump sum amount. Ditto for future pension streams!
This post has been about how necessary Divorce Financial Software is for the divorce lawyer. Our next post will address the advantages your client enjoys when you possess this divorce software.
Click here to learn more and take a tutorial about how easy this software is to use and benefit from.