SP&H was hired to determine the appropriate level of spousal support in a divorce proceeding. Both parties were self-employed. SP&H analyzed the historical income and expenses of both parties and determined that no spousal support was necessary.

One challenge in this case was to separate the expenses that were required by each party's business activities from those that were discretionary and/or personal.

At first glance, the husband appeared to have significantly more income than the wife: the husband reported $10,000 per month in income and the wife reported $4,000 in monthly income. Based on these amounts, spousal support would be $1,658 per month (husband pays wife).

Upon closer examination, however, many of the "business expenses" reported by both parties should not be included in support calculations.

The following table shows SP&H's adjustments to income:

	Husband	Wife
Reported Monthly Income (After Expenses)	$10,000	$4,000
Personal Expenses:
Non-Cash Expenses (e.g., depreciation)	$400	$1,200
Discretionary Expenses	$200	$2,000
Personal Expenses	$500	$3,000
Adjusted Monthly Income	$11,100	$10,200

Based on the adjusted monthly income, no spousal support was warranted in this case.