AIP Professional Series · Chapter 6 of 11 · Financial

Financial Analysis and Discovery

Every AI-generated financial figure requires verification before it reaches a client

Equitable DistributionBusiness ValuationHidden Asset Discovery

Characterization First

Equitable Distribution Begins with Separate vs. Marital Property

Equitable distribution analysis begins with characterization — determining which assets are marital and which are separate. Separate property (typically brought into the marriage or received by gift or inheritance during it) generally is not subject to distribution. Marital property is. The characterization of specific assets is often contested and fact-specific.

AI can orient the attorney to the characterization rules in a jurisdiction and identify the factors courts have applied to disputed assets. The specific characterization of specific assets in a specific matter requires attorney analysis and, often, primary source research on the jurisdiction's case law.

Financial figures to clients: AI tools can produce confident, detailed, incorrect child support calculations or property division analysis. Financial figures that reach clients — as estimates, as explanations, as supporting analysis for settlement decisions — shape expectations in ways that are difficult to correct. Every AI-generated financial figure requires verification before it reaches a client.

Business Valuation in Dissolution

A closely held business interest in the marital estate requires valuation. Business valuation in family law involves three standard approaches: income approach (capitalized or discounted earning stream), market approach (comparable sales), and asset approach (net asset value). The method most commonly used varies by jurisdiction and asset type.

AI can orient the attorney to the valuation methodologies and the common disputes in closely held business valuation — goodwill allocation, owner compensation normalization, marketability discounts. The actual valuation requires a qualified expert.

Hidden asset discovery: Prepare comprehensive discovery requests covering all potential asset categories — AI helps ensure no category is overlooked. Tax returns from multiple years reveal income patterns and asset transfers. Business records of a closely held enterprise warrant particular scrutiny — personal expenses run through the business, artificial compensation structures. Expert forensic accountant engagement should be scoped using the AI-assisted analysis of the financial document patterns.

Ready-to-Use Prompts

Adapt these for your practice and jurisdiction. Click Copy to paste into any AI tool.

Equitable Distribution Framework

I am analyzing equitable distribution for a dissolution in [state]. Marital assets include: [list assets with approximate values]. Potentially separate property includes: [list with basis for separate character — premarital ownership, gift, inheritance]. Help me develop: (1) the characterization framework for each asset under [state] law — note what I need to verify against current statute and case law, (2) the equitable distribution factors most relevant to these facts, (3) the financial analysis strategy for the most contested assets, and (4) discovery I should pursue to support characterization and valuation positions.

Hidden Asset Discovery Checklist

I am in discovery in a dissolution matter where I have reason to believe the opposing party may not be fully disclosing assets and income. The opposing party [describe: business owner / employee / professional / etc.]. Help me develop a comprehensive discovery checklist covering all potential asset categories and income sources I should be pursuing through interrogatories, document requests, and subpoenas. Include: business records to request, financial institution subpoenas, tax return analysis, social media and lifestyle evidence, and any red flag patterns I should be alert to in the documents I receive.

Chapter Quiz

Financial Analysis and Discovery

5 questions — no limit on attempts.