1. The Value of Future Projections What does the Financial Divorce Specialists provide for clients and other professionals?

2. Two Perspectives Two Perspectives Here and Now – Present Value of assets (the traditional method) as understood by clients and accepted by the courts as being “fair”. Here and Now – Present Value of assets (the traditional method) as understood by clients and accepted by the courts as being “fair”. Long term considerations – revealing the effects going forward of financial “choices” for better or for worse. Long term considerations – revealing the effects going forward of financial “choices” for better or for worse.

3. Legal Report Shows assets as of separation date (all “property”) Shows assets as of separation date (all “property”) Budgets (both parties) Budgets (both parties) Proposed Equalization Proposed Equalization Maintenance considerations Maintenance considerations

4. “Divorce Mate” Report

12. Assumptions Plan Term 30 Life Expectancy 85 CPI Inflation 2.50% Real Estate Inflation 3.00% Spouse Support Inflation 2.00% Child Support Inflation 2.00% Salary Inflation 2.00% Equity Investment Return 6.00% Interest Investment Return 3.00% Average Tax Rate 17.00%28.00% RRSP Investment Return 6.00% Personal Debt Interest Rate 9.00% -assumptions used to take growth, debt costs & inflation into account

13. NameMinnieMickey Current Age3537 Anticipated Retirement Age60 Income Salary3500078000 Child Support Number of Support Periods20 Support Amount for Period # 1141840Support for both children End Year for Period # 11299Minerva leaves home Support Amount for Period # 270920so support reduces End Year for Period # 21599Mickey Jr leaves home Current Client Details

14. Client Assets for Projections Non-registered AssetsMinnieMickey Cash & Cash Equivalents1320000 Other Investments4912530000 Registered Assets RRSP Value10600085000 Annual Contribution03000 Final Contribution Age60 Pensions Corporate RPP Benefit023850 RPP Increase%0.00%1.00% RPP Start Age6661 OAS Benefit5973.66 OAS Start Age66 CPP Benefit58207654.5 CPP Start Age61

15. Expenses Today & Tomorrow ExpensesMinnieMickey Living Expenses4108028732 Number of Expense Adjustments33 Expense Adjustment # 1 - Value0-4800Debt paid off by Mickey Start Year04 End Year99 Expense Adjustment # 2 - Value-70920Minerva leaves home Start Year120 End Year99 Expense Adjustment # 3 - Value-70920Mickey Jr leaves home Start Year150 End Year99

16. RRSP/RRIF WithdrawalsMinnieMickey Number of Withdrawal Adjustments22 Withdrawal Adjustment # 1 -Value1800012000 Both start to use RSP accts at Age 60 & take more until OAS begins at age 65 Start Year2725 End Year99 Withdrawal Adjustment # 2 -Value120006000 Start Year3029 End Year99 Personal Debts Personal Debt180009000Minnie keeps Suburban loan Number of Lumpsum Payments00 Mickey keeps Credit Card debt Fixed Annual Debt Payment65004800

17. Real Estate Asset Division Real EstateMinnieMickey Property # 1 -Value385000 Family Home stays with Minnie Mortgage Balance1650000 Interest Rate6.00% Payment Amount12670 Payments Per Year12 Amortization10 Year Purchased00 Year Sold99 Property # 2 -Value0255000Cottage stays with Mickey Property # 3 -Value0190000Farm stays with Mickey It is exempt due to inheritance

18. Effects of Choices Years Ahead

19. Mickey’s Cash Flow less while Paying Support but Minnie’s Cash Flow is much less in later Years

20. Academy of Financial Divorce Specialists Questions? Questions? www.afds.ca