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When a divorcing spouse is receiving a
considerable amount of financial assets as part of the property
division, then it is often expected that maintenance will not need to be
paid because there is sufficient capital for the individual to live at
the requisite standard of living.
A Capital Sufficiency Analysis is used to
determine if there is, in fact, sufficient capital being received by the
spouse to provide for his/her standard of living. This analysis
may include the expected growth from the assets under various investment
scenarios, the amount of income that can be expected from the portfolio
over time, the impact that withdrawals from the principal will have on
the value of the portfolio, and the tax impact (including both income
and capital gains taxes).
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