Determining Marital Standard of Living: Income Only versus the Subtraction (Cheriton) Method
By Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA
The intent behind this article is to provide you a better understanding of two primary methods used in determining marital standard of living (MSOL) called Income Only and Subtraction. In part one, I focused on the Subtraction method through a brief explanation of the determination of marital standard of living in the case of In re the Marriage of David R. and Iris M. Frasier Cheriton.
Here in part two, I focus on the Income Only method, for which In re the Marriage of Boris M. and Ann E. Ackerman provides an ideal example. (For those of you who missed Part One, I encourage you to visit our website page where you can download a PDF version of Newsletter 41.