Family Law Software Report - Divorce Financial Help in ... · Newtown, PA 19323 Phone: 610-333-2222...

4/4/2011

Prepared by Carrie D. Wilson, CFP ®, CDFA 4/4/2011 George J Jones & Marianne P Jones

Financial Planfor

George J Jones

and

Marianne P Jones

4/4/2011


Financial Plan

Husband: George J JonesWife: Marianne P JonesDate: 04/04/2011 - 10:20amCase: 44-32323 Harold J Jones vs. Marianne P JonesJudge: Marion Winslet, phone: 610-333-2323Court: Family Court

333 Monroe StCourt address 222Newtown, PA 19323Phone: 610-333-2222 Fax: 222-333-4444

Prepared by: Carrie D. Wilson, CFP ®, CDFATXPhone: 972.444.9944 Email: [email protected]

Contact & Background Information

George J Jones SSN: 444-55-3333Birth Date: 4/5/1971State where George J Jones lives: TXAddress: 17 Merion Ln, Merion, TX 19333Phone: 610-444-5555E-mail: [email protected]

Marianne P Jones SSN: 222-33-4444Birth Date: 11/20/1974State where Marianne P Jones lives: TXAddress: 40 Winding Way, Berwyn, TX 19434Phone: 610-333-2222E-mail: [email protected]

Children

Tiffany Birth Date: 4/5/1999Tiffany is a child of this relationship.Tiffany is young enough to be eligible for child support.George J Jones will claim the tax exemption.Tiffany will be a tax exemption until 21.

Amber Birth Date: 12/2/2003Amber is a child of this relationship.Amber is young enough to be eligible for child support.George J Jones will claim the tax exemption.Amber will be a tax exemption until 21.

mailto:[email protected]



4/4/2011


Table Of Contents

Key Reports(1) One-Page Summary(2) Division of Marital Property(3) Projected After-Tax Cash Flow(4) Projected Net Worth(5) Summary Totals Spreadsheet(6) Budget Report(7) View/Edit Taxes(8) After-Tax Cash Flow Spreadsheet(9) Liquidations to Cover Negative Cash Flow(10) Accumulated Savings(11) Net Worth Spreadsheet(12) Key Entries and Assumptions(13) Observations

General Backup(14) Total Property Division (Marital plus Separate)(15) Marital and Separate Property(16) Marital Property Division on an After-Tax Basis(17) Tax Calculation(18) Five Year Projection(19) Property Statement(20) Property Valuations(21) Combined Income(22) Budget Report for Children(23) Sale of Real Estate(24) Pension Valuation(25) Pension Audit Trail(26) Child Support & Spousal Maintenance Summary

Backup Reports for Liquidations(27) Financial Investment Liquidation(28) IRA / 401(k) Liquidation

Backup Reports for Tax Calculations(29) Tax Detail (part 1 - AGI)(30) Tax Detail (part 2 - Deductions)(31) Tax Detail (part 3 - Bottom Line)(32) Taxable Investment Income Report(33) Alternative Minimum Tax Audit Trail(34) State Taxes(35) FICA, Medicare and Self-Employment Taxes(36) Unearned Income Medicare Contribution Tax

Backup Reports for Income Line Items(37) Wages and Salary(38) Non-Wage Income(39) Business Income(40) Business Income and Expense Detail(41) Financial Investment Income(42) Real Estate Income(43) Social Security Income(44) IRA/401(k) Payouts(45) Defined Benefit Plan Payouts(46) Child Support Received

4/4/2011

Table of Contents (cont.)


(47) Spousal Maintenance Received

Backup Reports for Expense Line Items(48) Income on Accumulated Savings(49) Living Expenses(50) Life Insurance Premiums(51) Major Expenses(52) Spousal Maintenance Paid(53) Child Support Paid(54) Debt Payments

Backup Reports for Net Worth / Property Line Items(55) Investment Assets(56) Cars and Personal Effects(57) Equity in Real Estate(58) Life Insurance Assets(59) Business Assets(60) IRA / 401(k) Assets(61) Defined Benefit Pension(62) Note (Debt) Between Spouses

4/4/2011


One-Page Summary

Monthly totals for George J Jones or Marianne P Jones.

Total Income George MarianneWages and Salary $14,583 $4,117Child Support Received 0 1,875Spousal Maintenance Received 0 1,000All Other Income 667 208TOTAL INCOME 15,250 7,200

Total ExpensesChild Support Paid 1,875 0Spousal Maintenance Paid 1,000 0All Other Expenses 6,539 6,869TOTAL EXPENSES 9,414 6,869

TaxesFederal Income Tax 3,579 291State Income Tax 0 0Local Tax on Wages 0 0FICA/Medicare Tax 595 233TOTAL TAXES 4,174 523

Budget Net IncomeBUDGET NET INCOME 1,662 -192

PropertyMarital Property 130,402 72,426Separate Property 0 83,644TOTAL PROPERTY $130,402 $156,070

MiscellaneousNumber of Dependents 2 0Filing Status Filing Separate Head HsldSpousal Maintenance paid, % of gross income 7 0Child Support paid, % of gross income 12 0Combined pmts, % of gross income 19 0

4/4/2011


Division of Marital Property

Property division report for George J Jones and Marianne P Jones.

George Marianne TotalAmount Pct Amount Pct Amount

Real Estate Equity40 Winding Way (1) $40,000 $40,000 $80,000

Total Value $450,0001st Mortgage $320,000Equity $130,000

Vacation Home $81,250 $0 $81,250Total Value $100,0001st Mortgage $18,750Equity $81,250

Total Real Estate Equity $121,250 75% $40,000 25% $161,250

Cash & InvestmentsCash-Equivalent Investments:

First Union -- -- $1,875Bank of America (2) -- -- $0Bank of America -- -- $3,292Total Cash-Equivalent $0 0% $0 0% $5,167

Other Investments:Vanguard Index 500 -- -- $12,755Nuveen Bond Fund -- -- $10,000Municipal Bonds -- -- $20,000Total Other Investments $0 0% $0 0% $42,755

Total Investments $0 0% $0 0% $47,922

BusinessesMary Kay franchise $0 $0 $0Total Businesses $0 0% $0 0% $0

Cars and Personal EffectsJewelry $1,500 $0 $1,500Paintings (3) $700 $0 $700Honda civic -- -- $21,000Toyota Corolla -- -- $24,000Total Personal Items $2,200 100% $0 0% $47,200

Subtotal Non-Retirement $123,450 76% $40,000 24% $256,372

IRAs and 401(k)sVanguard IRA $12,555 $0 $12,555Total IRAs and 401(k)s $12,555 100% $0 0% $12,555

4/4/2011

Division of Marital Property (cont.)




Defined Benefit PensionsSchool district $0 $38,029 $38,029Total Pensions $0 0% $38,029 100% $38,029

Subtotal Retirement $12,555 25% $38,029 75% $50,584

Total Assets $136,005 64% $78,029 36% $306,956

DebtsMasterCard Bank Two ($1,728) ($1,728) ($3,456)VISA Country Card ($3,875) ($3,875) ($7,750)Total Debt ($5,603) 50% ($5,603) 50% ($11,206)

Total Debts ($5,603) 50% ($5,603) 50% ($11,206)

Total Assets $136,005 64% $78,029 36% $306,956Total Debts ($5,603) 50% ($5,603) 50% ($11,206)Total Marital Property $130,402 64% $72,426 36% $295,750

Equalization Payment ($28,988) $28,988Total Marital After Equalization $101,414 50% $101,414 50%

Note: $92,922 is unallocated. Also, "Total Amount" column may not add due to rounding.

Footnotes:(1) 40 Winding Way - Marianne will remain in the marital home.(2) Bank of America - Funds from Inheritance, kept separate. Value is as of most recent bank statement.(3) Paintings - Paintings have sentimental value to Marianne

4/4/2011

Division of Marital Property (cont.)


Division of Marital Property:

George property after payment$101,414 - (50.0%).

Marianneproperty before payment$72,426 - (35.7%).

Equalization Payment $28,988 - (14.3%).

George

Marianne

Equalization Payment

4/4/2011


Projected After-Tax Cash Flow

Projected After-Tax Cash Flow for George J Jones or Marianne P Jones for 10 years.

George Marianne George Marianne2011 $ 19,946 ($ 2,305) 2016 $ 31,366 ($ 10,366)2012 $ 25,421 ($ 3,427) 2017 $ 35,635 ($ 48,015)2013 $ 22,512 ($ 4,961) 2018 $ 38,428 ($ 55,220)2014 $ 23,975 ($ 5,158) 2019 $ 43,850 ($ 66,500)2015 $ 25,404 ($ 5,390) 2020 $ 45,473 ($ 73,308)

George Marianne

$-20,000

$-40,000

$-60,000

$-80,000

$0

$20,000

$40,000

$60,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Projected Net Worth

Projected Net Worth for George J Jones or Marianne P Jones for 10 years.

George Marianne George Marianne2011 $ 160,180 $ 170,170 2016 $ 385,743 $ 292,8822012 $ 201,177 $ 194,616 2017 $ 446,967 $ 280,0582013 $ 241,149 $ 218,619 2018 $ 513,788 $ 262,0122014 $ 284,451 $ 243,780 2019 $ 589,091 $ 234,8132015 $ 331,210 $ 270,160 2020 $ 669,379 $ 202,912

George Marianne

$0

$200,000

$400,000

$600,000

$800,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Summary Totals Spreadsheet

George Summary Totals Spreadsheet

INCOME ASSETS & DEBTYear Age Total Total Total After Tax Accum. Fin Equity in IRA / Other Net

Income Expenses Taxes Cash Savings Assets Real Est. 401(k) Assets/Debt Worth2011 40 183,000 112,962 50,092 19,946 19,946 0 130,009 13,183 (2,958) 160,1802012 41 186,922 114,432 47,069 25,421 46,165 0 143,621 13,842 (2,451) 201,1772013 42 191,099 115,925 52,662 22,512 70,524 0 157,966 14,534 (1,875) 241,1492014 43 195,281 117,451 53,855 23,975 97,320 0 173,091 15,261 (1,221) 284,4512015 44 199,603 119,006 55,193 25,404 126,617 0 189,046 16,024 (477) 331,2102016 45 204,067 114,217 58,484 31,366 163,048 0 205,891 16,825 (21) 385,7432017 46 208,812 112,753 60,424 35,635 205,205 0 223,680 17,666 416 446,9672018 47 213,801 112,895 62,478 38,428 251,841 0 242,480 18,549 918 513,7882019 48 218,992 108,577 66,565 43,850 305,765 0 262,356 19,476 1,494 589,0912020 49 224,477 110,281 68,723 45,473 363,469 0 283,303 20,450 2,157 669,379

Marianne Summary Totals Spreadsheet

INCOME ASSETS & DEBTYear Age Total Total Total After Tax Accum. Fin Equity in IRA / Other Net

Income Expenses Taxes Cash Savings Assets Real Est. 401(k) Assets/Debt Worth2011 37 86,400 82,428 6,277 (2,305) 0 23,291 105,362 0 41,517 170,1702012 38 87,405 83,073 7,759 (3,427) 0 20,324 128,090 0 46,202 194,6162013 39 88,406 83,727 9,640 (4,961) 0 15,481 152,182 0 50,956 218,6192014 40 89,395 84,396 10,157 (5,158) 0 10,256 177,734 0 55,790 243,7802015 41 90,399 85,076 10,713 (5,390) 0 4,598 204,849 0 60,713 270,1602016 42 85,420 85,397 10,389 (10,366) (6,101) 0 233,635 0 65,348 292,8822017 43 83,486 120,017 11,484 (48,015) (54,116) 0 264,211 0 69,963 280,0582018 44 83,171 126,253 12,138 (55,220) (109,336) 0 296,704 0 74,644 262,0122019 45 78,383 133,167 11,716 (66,500) (175,836) 0 331,249 0 79,400 234,8132020 46 79,622 140,825 12,105 (73,308) (249,144) 0 367,815 0 84,241 202,912

4/4/2011


Budget Report for 2011

Budget Report for George J Jones and Marianne P Jones for 2011

This report shows George's and Marianne's income, taxes, expenses, including spousal maintenance incomeand child support income, including spousal maintenance expenses and child support expenses.

George Marianne Monthly Monthly

IncomeRed Rock, LLC $14,583.33 $0.00

School district 0.00 4,116.67Bonuses 666.67 0.00

Total Wage and Non-Wage Income $15,250.00 $4,116.67

Investment IncomeBank of America $0.00 $41.67

Total Investment Income $0.00 $41.67

Business IncomeMary Kay franchise $0.00 $166.67

Total Business Income $0.00 $166.67

Support ReceivedChild Support Received $0.00 $1,875.00

Spousal Maintenance Received $0.00 $1,000.00Total Support Received $0.00 $2,875.00

TOTAL INCOME $15,250.00 $7,200.00

Mortgage Payments40 Winding Way $0.00 (1) $3,750.00 (1)

Vacation Home 0.00 200.00Total Mortgage Payments $0.00 $3,950.00

Living ExpensesUnion Dues $0.00 $20.00

Rent 1,200.00 900.00Homeowners' Insurance 66.67 0.00

Real Estate Tax 0.00 250.00Cable TV 40.00 50.00

Internet Access 80.00 0.00Painting/Wallpapering 50.00 0.00

Household Supplies 70.00 0.00Maid/Cleaning Service 325.00 0.00

Lawn Service 0.00 100.00Utilities - Electricity 75.00 100.00

Utilities - Oil Heat 100.00 66.67Car Payments 500.00 350.00Car Insurance 1,200.00 41.67

Car Gasoline/Oil 130.00 0.00Car Maintenance and Repair 75.00 0.00

Car License/Stickers 50.00 0.00Parking 43.33 0.00

4/4/2011

Budget Report (cont.)



Public/Alt. Transportation 43.33 0.00Child Care - Day Care 0.00 476.67

Child Education Lunches 100.00 0.00Bank Fees 4.17 0.00Cell Phone 90.00 70.00

Clothes 400.00 0.00Charitable 83.33 0.00

Church/Synagogue/Mosque etc 83.33 0.00Dues/Clubs 83.33 0.00

Entertainment 86.67 0.00Food/Groceries 216.67 346.67

Gifts 41.67 0.00Hair 30.00 0.00

Laundry 3.00 0.00Legal and Accounting 200.00 0.00

Previous Relship Child Support 200.00 0.00Restaurants 130.00 0.00

Subscriptions, Books 80.00 0.00Toiletries/Grooming/Drug Store 86.67 0.00

Vacations 166.67 0.00Health Insurance 120.00 0.00

Medical/Doctor 0.00 50.00Dental 100.00 0.00

Drug & Prescription 87.00 0.00Total Living Expenses $6,440.83 $2,821.67

Payments on DebtMasterCard Bank Two $37.58 $37.42

VISA Country Card 60.08 59.92Total Payments on Debt $97.67 $97.33

Support PaidChild Support Paid $1,875.00 $0.00

Spousal Maintenance Paid 1,000.00 0.00Total Support Paid $2,875.00 $0.00

TOTAL EXPENSES $9,413.50 $6,869.00

TaxesFederal Taxes $3,579.33 $290.50

FICA & Medicare $595.00 $232.58State Taxes (estimate only) $0.00 $0.00

Local Wage Tax $0.00 $0.00

TOTAL TAXES $4,174.33 $523.08

4/4/2011

Budget Report (cont.)



Total Income $15,250.00 $7,200.00Minus Total Expenses (9,413.50) (6,869.00)

Minus Total Taxes (4,174.33) (523.08)

BUDGET NET INCOME $1,662.17 $(192.08)

Footnotes:(1) 40 Winding Way - Marianne will remain in the marital home.

4/4/2011


View/Edit Taxes for 2013

George Marianne Single Head Hsld Filing Status in 2013

3 1 Number of exemptions

Income:181,713 51,295 Wages and salary.

462 Taxable interest income.462 406 Taxable dividend income.

12,000 Spousal Maintenance income.2,205 Business and farm income.

462 Capital gain taxable.Other gains and losses.Taxable IRA and pension income.Rent, royalty, partnership, S corporation.Social Security taxable.

8,000 Other income.

191,099 65,906 Taxable gross income.

Adjustments:Payroll deductions for health, etc.IRA/401k deduction.Moving expenses.

156 Deduction of 1/2 of self-employment tax.Part of health insurance for self-employed people.

12,000 Spousal Maintenance paid.Interest on education loans.Other deductions.

12,000 156 Total adjustments.

179,099 65,750 Adjusted Gross Income ("AGI") = gross income - total adjustments).

Itemized Deductions:3,825 623 Total medical expenditures.

10.0 10.0 Info only: Medical expense threshold % (7.5% or 10.0%, depending on year and age).17,910 6,575 Info only: Medical expense threshold = Medical expense threshold % * AGI

Deductible medical (= medical expenses in excess of threshold).0 0 State income taxes.

Local income taxes.3,115 Real estate taxes.

19,612 Mortgage interest.2,076 Charitable contributions.

52 249 Miscellaneous, subject to 2% AGI threshold.miscellaneous, after 2% AGI threshold.Miscellaneous, not subject to 2% AGI threshold.

2,076 22,727 Itemized deductions before phase-out.2,036 22,727 Itemized deductions after phase-out.6,000 8,800 Compare: standard deduction.

4/4/2011

View/Edit Taxes (cont.)


George Marianne

Exemptions:11,400 3,800 Deduction for exemptions before phase-out.11,172 3,800 Deduction for exemptions after phase-out.

Tax Before Credits and Other Taxes:161,927 39,223 Taxable Income

= AGI - greater of itemized or standard deductions - exemptions.43,035 5,884 Tax before credits and other taxes (from tax table or formula).

31 15 Marginal federal tax bracket (%)

Non-refundable Credits:480 Child care credit.

Hope education credit.Lifetime learning credit.Child credit, after phase-out, non-refundable portion.

480 Total non-refundable credits (reduce tax, but not below zero).

Refundable Credits:Child credit, after phase-out, refundable portion.Earned income credit.Making work pay credit.Hope credit, refundable portion.

Total refundable credits (can reduce tax below zero and generate a payment from the IRS).

Other Taxes on Form 1040:Tax on retirement plan premature distribution.

0 0 Alternative minimum tax.Lump-sum distribution 5- or 10- year averaging.

312 Self-employment tax.0 Unearned Income Medicare Contribution.

Total Federal Income Tax: = tax before credits and other taxes - total nonrefundable credits (down to zero) - total refundable credits + other taxes on Form 1040

43,035 5,716 Total Federal Income Tax.23 9 Average federal tax rate (= Fed Tax / Gross Income) (%)

Taxes Not on Form 1040:6,876 3,180 FICA Taxes.2,751 744 Medicare Taxes.

0 0 State Income Tax (estimate only)Local Wage Tax.

Total Taxes:52,662 9,640 Total taxes.

4/4/2011

View/Edit Taxes (cont.)


4/4/2011


After-Tax Cash Flow Spreadsheet

George After-Tax Cash Flow Spreadsheet

Year Age Wages & Non-Wage Income on Total Living Spousal Child Payments Total Pre-tax Salary Income Accum Svg Income Expenses Maint. Pd. Supt Pd on Debt Expenses Cash flow

2011 40 175,000 8,000 0 183,000 77,290 12,000 22,500 1,172 112,962 70,0382012 41 178,325 8,000 597 186,922 78,761 12,000 22,500 1,171 114,432 72,4902013 42 181,713 8,000 1,386 191,099 80,254 12,000 22,500 1,171 115,925 75,1742014 43 185,166 8,000 2,115 195,281 81,780 12,000 22,500 1,171 117,451 77,8302015 44 188,684 8,000 2,919 199,603 83,334 12,000 22,500 1,172 119,006 80,5972016 45 192,269 8,000 3,798 204,067 84,919 6,000 22,500 798 114,217 89,8502017 46 195,922 8,000 4,890 208,812 86,532 6,000 19,500 721 112,753 96,0592018 47 199,645 8,000 6,156 213,801 88,174 6,000 18,000 721 112,895 100,9062019 48 203,438 8,000 7,554 218,992 89,856 0 18,000 721 108,577 110,4152020 49 207,303 8,000 9,174 224,477 91,560 0 18,000 721 110,281 114,196

George After-Tax Cash Flow Spreadsheet

Year Age Federal FICA / Total After-tax Inc Tax Soc Sec Taxes Cash

2011 40 42,952 7,140 50,092 19,9462012 41 37,620 9,449 47,069 25,4212013 42 43,035 9,627 52,662 22,5122014 43 44,048 9,807 53,855 23,9752015 44 45,202 9,991 55,193 25,4042016 45 48,303 10,181 58,484 31,3662017 46 50,019 10,405 60,424 35,6352018 47 51,844 10,634 62,478 38,4282019 48 55,698 10,867 66,565 43,8502020 49 57,619 11,104 68,723 45,473

4/4/2011

After-Tax Cash Flow Spreadsheet (cont.)


Marianne After-Tax Cash Flow Spreadsheet

Year Age Wages & Business Fin. Child Spousal Total Living Major Mortgage Payments Salary Income Invest. Support Maint. Income Expenses Expenses Payments on Debt

2011 37 49,400 2,000 500 22,500 12,000 86,400 33,860 0 47,400 1,1682012 38 50,339 2,100 466 22,500 12,000 87,405 34,504 0 47,400 1,1692013 39 51,295 2,205 406 22,500 12,000 88,406 35,158 0 47,400 1,1692014 40 52,270 2,315 310 22,500 12,000 89,395 35,827 0 47,400 1,1692015 41 53,263 2,431 205 22,500 12,000 90,399 36,508 0 47,400 1,1682016 42 54,275 2,553 92 22,500 6,000 85,420 37,200 0 47,400 7972017 43 55,306 2,680 0 19,500 6,000 83,486 37,908 33,502 47,400 7192018 44 56,357 2,814 0 18,000 6,000 83,171 38,627 35,178 47,400 7192019 45 57,428 2,955 0 18,000 0 78,383 39,365 36,936 47,400 7192020 46 58,519 3,103 0 18,000 0 79,622 40,112 38,783 47,144 719

Marianne After-Tax Cash Flow Spreadsheet

Year Age Accum Debt Total Pre-tax Federal FICA / Total After-tax Interest Expenses Cash flow Inc Tax Soc Sec Taxes Cash

2011 37 0 82,428 3,972 3,486 2,791 6,277 (2,305)2012 38 0 83,073 4,332 3,908 3,851 7,759 (3,427)2013 39 0 83,727 4,679 5,716 3,924 9,640 (4,961)2014 40 0 84,396 4,999 6,158 3,999 10,157 (5,158)2015 41 0 85,076 5,323 6,639 4,074 10,713 (5,390)2016 42 0 85,397 23 6,237 4,152 10,389 (10,366)2017 43 488 120,017 (36,531) 7,253 4,231 11,484 (48,015)2018 44 4,329 126,253 (43,082) 7,827 4,311 12,138 (55,220)2019 45 8,747 133,167 (54,784) 7,322 4,394 11,716 (66,500)2020 46 14,067 140,825 (61,203) 7,628 4,477 12,105 (73,308)

4/4/2011


Liquidations to Cover Negative Cash Flow

Liquidations to Cover Negative Cash Flow report for George J Jones or Marianne P Jones.

The "liquidation" amount is the amount of investments and IRA/401(k) thatis used to cover negative cash flow (expenses in excess of income) and downpaymentson homes to be purchased in the future.

The software first sells securities, then distributes from the IRA/401(k) plan(s).

Upon each liquidation sale, the software sells a bit extra to pay for taxes on the sales.

Data Entries:YES Distribute accumulated savings to cover downpayment?YES Sell securities to cover downpayment?YES Distribute accumulated savings to cover negative cash flow?YES Sell securities to cover negative cash flow?YES Distribute from IRA/401(k) to cover negative cash flow?

Liquidations of Securities and IRA/401(k):

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Accumulated savings distributed

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Securities soldGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 2,459 3,666 5,453 5,689 5,966 4,736 0 0 0 0Plus: IRA/401(k) distributed

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Total LiquidationsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 2,459 3,666 5,453 5,689 5,966 4,736 0 0 0 0Less: Incremental federal and state tax (including penalties)

George 0 0 0 0 0 0 0 0 0 0Marianne 154 239 492 531 576 471 0 0 0 0

Equals: Liquidation Available for Negative Cash FlowGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 2,305 3,427 4,961 5,158 5,390 4,265 0 0 0 0

4/4/2011

Liquidations to Cover Negative Cash Flow (cont.)


Assets Used to Cover Negative Cash Flow

George Marianne

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Accumulated Savings

Accumulated Savings report for George J Jones or Marianne P Jones.

Accumulated Savings is the account for reinvested earnings that are not spent, and also fordeficits (negative Accumulated Savings), which reflect borrowing to cover expenses and taxes.

Real Estate sale and refinance proceeds and downpayments affect Net Worth through additionsto or subtractions from the Accumulated Savings account.

Liquidations of assets increase the Accumulated Savings account by offsetting deficits whichwould otherwise have to be covered by borrowing.

Accumulated Savings are also appreciating at 4.00% (George) / 4.00% (Marianne).

Accumulated Savings:Accumulated savings at end of the previous year

George 0 19,946 46,165 70,524 97,320 126,617 163,048 205,205 251,841 305,765Marianne 0 0 0 0 0 0 (6,101) (54,116) (109,336) (175,836)

Plus: Appreciation on previous accumulated savings at (4.00% (George) and 4.00% (Marianne)).George 0 798 1,847 2,821 3,893 5,065 6,522 8,208 10,074 12,231

Marianne 0 0 0 0 0 0 0 0 0 0Plus or Minus: Current year after-tax cash

George 19,946 25,421 22,512 23,975 25,404 31,366 35,635 38,428 43,850 45,473Marianne (2,305) (3,427) (4,961) (5,158) (5,390) (10,366) (48,015) (55,220) (66,500) (73,308)

Plus: Real estate sale or refinance proceedsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Minus: Current year down payment on real estate

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Minus: Tax paid when accumulated savings are liquidated to cover negative cash flow and downpaymentsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Plus: Investment assets transferred in to cover negative cash flow (net of tax on sale of investments)

George 0 0 0 0 0 0 0 0 0 0Marianne 2,305 3,427 4,961 5,158 5,390 4,265 0 0 0 0

Plus: IRA assets transferred in to cover negative cash flow (net of tax on IRA distribution)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Equals: End of year accumulated savings

George 19,946 46,165 70,524 97,320 126,617 163,048 205,205 251,841 305,765 363,469Marianne 0 0 0 0 0 (6,101) (54,116) (109,336) (175,836) (249,144)

Calculating Untaxed Appreciation on Accumulated Savings at End Of Year Before Liquidations:Untaxed appreciation at end of prior year, after liquidations (see below)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Appreciation on previous accumulated savings at 4.00% (George) and 4.00% (Marianne)).George 0 798 1,847 2,821 3,893 5,065 6,522 8,208 10,074 12,231

Marianne 0 0 0 0 0 0 0 0 0 0Equals: Untaxed appreciation at the end of the current year, before liquidations

George 0 798 1,847 2,821 3,893 5,065 6,522 8,208 10,074 12,231

4/4/2011

Accumulated Savings (cont.)


Marianne 0 0 0 0 0 0 0 0 0 0

Calculating Untaxed Appreciation at End of Year After Liquidations, and Tax Paid:(a) Accumulated savings at end of the previous year (see above)

George 0 19,946 46,165 70,524 97,320 126,617 163,048 205,205 251,841 305,765Marianne 0 0 0 0 0 0 (6,101) (54,116) (109,336) (175,836)

(b) Untaxed appreciation at the end of the current year, before liquidations (see above)George 0 798 1,847 2,821 3,893 5,065 6,522 8,208 10,074 12,231

Marianne 0 0 0 0 0 0 0 0 0 0(c) Accumulated savings liquidated to cover after-tax cash deficit and downpayments

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(d) Percent of accumulated savings liquidated: (c) / (a) (rounded here)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(e) Untaxed appreciation used (sold) in the liquidation: (d)*(b)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(f) Untaxed appreciation at end of year, after liquidations: (b)-(e)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(g) Tax paid on liquidation: (e) * (KG rate + state tax rate) = (e) * (e.g., 15.00% (George) and 15.00% (Marianne) in 2011)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Figuring Amount of Accumulated Savings Used to Cover Negative Cash Flow:(a) Amount liquidated

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(b) Less: Tax paid on liquidation of accumulated savings (see above)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(c) Equals: Amount of accumulated savings used to cover negative cash flow and downpayments

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Net Worth Spreadsheet

George Net Worth Spreadsheet

Year Age Fin. Cars / Equity in IRA / Defined Accum. Net Assets Furn. Real Est. 401(k) Benefit Debt Savings Worth

2011 40 0 2,200 130,009 13,183 0 (5,158) 19,946 160,1802012 41 0 2,200 143,621 13,842 0 (4,651) 46,165 201,1772013 42 0 2,200 157,966 14,534 0 (4,075) 70,524 241,1492014 43 0 2,200 173,091 15,261 0 (3,421) 97,320 284,4512015 44 0 2,200 189,046 16,024 0 (2,677) 126,617 331,2102016 45 0 2,200 205,891 16,825 0 (2,221) 163,048 385,7432017 46 0 2,200 223,680 17,666 0 (1,784) 205,205 446,9672018 47 0 2,200 242,480 18,549 0 (1,282) 251,841 513,7882019 48 0 2,200 262,356 19,476 0 (706) 305,765 589,0912020 49 0 2,200 283,303 20,450 0 (43) 363,469 669,379

Note: Numbers are all as of "end of year."

4/4/2011

Net Worth Spreadsheet (cont.)


Marianne Net Worth Spreadsheet

Year Age Fin. Cars / Equity in IRA / Defined Accum. Net Assets Furn. Real Est. 401(k) Benefit Debt Savings Worth

2011 37 23,291 0 105,362 0 46,673 (5,156) 0 170,1702012 38 20,324 0 128,090 0 50,852 (4,650) 0 194,6162013 39 15,481 0 152,182 0 55,031 (4,075) 0 218,6192014 40 10,256 0 177,734 0 59,210 (3,420) 0 243,7802015 41 4,598 0 204,849 0 63,389 (2,676) 0 270,1602016 42 0 0 233,635 0 67,568 (2,220) (6,101) 292,8822017 43 0 0 264,211 0 71,747 (1,784) (54,116) 280,0582018 44 0 0 296,704 0 75,926 (1,282) (109,336) 262,0122019 45 0 0 331,249 0 80,105 (705) (175,836) 234,8132020 46 0 0 367,815 0 84,284 (43) (249,144) 202,912

Note: Numbers are all as of "end of year."

4/4/2011


Key Entries and Assumptions

This report presents the key assumptions behind the income and asset projections for George J Jones and Marianne P Jones.

Key Rates

1. Inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 %

2. George - Interest rate of return on accumulated (re-invested) savings. . . . . . . . . . . . . . . . 1.00 %3. George - Dividend rate of return on accumulated (re-invested) savings. . . . . . . . . . . . . . . 1.00 %4. George - Capital Gain income rate on accumulated (re-invested) savings. . . . . . . . . . . . . 1.00 %5. George - Tax-free income rate of return on accumulated (re-invested) savings. . . . . . . . . 0.00 %6. George - Appreciation on accumulated (re-invested) savings. . . . . . . . . . . . . . . . . . . . . . . . 4.00 %7. George - Interest rate on borrowing to cover excess spending . . . . . . . . . . . . . . . . . . . . . . 8.00 %8. Marianne - Interest rate of return on accumulated (re-invested) savings. . . . . . . . . . . . . . . 1.00 %9. Marianne - Dividend rate of return on accumulated (re-invested) savings. . . . . . . . . . . . . . 1.00 %10. Marianne - Capital Gain income rate on accumulated (re-invested) savings. . . . . . . . . . . . 1.00 %11. Marianne - Tax-free income rate of return on accumulated (re-invested) savings. . . . . . . . 0.00 %12. Marianne - Appreciation on accumulated (re-invested) savings. . . . . . . . . . . . . . . . . . . . . . 4.00 %13. Marianne - Interest rate on borrowing to cover excess spending . . . . . . . . . . . . . . . . . . . . . 8.00 %

Taxes

1. Federal taxes are calculated on a detailed basis using the tax laws for each year, including Earned Income Credit, Alternative Minimum tax, and phase-outs currently enacted.

2. Taxes for George J JonesFederal and state filing status for 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Married Filing SeparatelyFiling status for subsequent years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SingleState taxes are estimated by applying the current tax table to gross income.

3. Taxes for Marianne P JonesFederal and state filing status for 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Head of HouseholdFiling status for subsequent years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Head of HouseholdState taxes are estimated by applying the current tax table to gross income.

Assumptions Relating to ChildrenCustody Tax Exemption

1. Tiffany.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marianne George2. Amber.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marianne George

Assumptions Relating to Child Support

1. George paying child support through 4/2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,875 per month2. Then, child support through 12/2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500 per month

Assumptions Relating to Spousal Maintenance

1. George paying spousal maintenance through 12/2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 per month2. Then, spousal maintenance through 12/2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500 per month

Real Estate Assumptions - 40 Winding Way

1. Market Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $450,0002. Rate of appreciation of property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . With Inflation3. This property will not be sold in the time frame under consideration.4. There is a first mortgage with a current mortgage balance of $320,000.5. This mortgage will be paid by Marianne.

4/4/2011

Key Entries and Assumptions (cont.)


Real Estate Assumptions - Vacation Home

1. Market Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,0002. Rate of appreciation of property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . With Inflation3. This property will not be sold in the time frame under consideration.4. There is a first mortgage with a current mortgage balance of $18,750.5. This mortgage will be paid by Marianne.

Assumptions Relating to Wages

George

Red Rock, LLC:1. Wage amount and period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175,000 / year2. Rate of increase of wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . With Inflation3. Retirement age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Marianne

School district:1. Wage amount and period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $950 / week2. Rate of increase of wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . With Inflation3. Retirement age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Assumptions Relating to Major Expenses

1. Tiffany's college expense will start on 1/1/2017, run for 4 years.The annual cost is $25,000 in present dollars, and will increase at a rate of 5.0%.Marianne P Jones will pay 100% of this expense.

2. Amber's college expense will start on 1/1/2021, run for 4 years.The annual cost is $25,000 in present dollars, and will increase at a rate of 5.0%.Marianne P Jones will pay 100% of this expense.

Assumptions Relating to Cash & Investments

1. First Union [Checking]: The current market value is $1,875.The annual income from this asset is $0. The annual rate of appreciation is 0.0%.

2. Vanguard Index 500 [Mutual fund]: The current market value is $12,755.The annual income from this asset is $1,000. The annual rate of appreciation is 8.0%.

3. Bank of America [Checking]: The current market value is $25,000.The annual rate of return is 2.0%. The annual rate of appreciation is 3.0%.

4. Nuveen Bond Fund [Bond fund]: The current market value is $10,000.The annual rate of return is 4.6%. The annual rate of appreciation is 0.0%.

5. Municipal Bonds [Tax-exempt]: The current market value is $20,000.The annual rate of return is 2.2%. The annual rate of appreciation is 0.0%.

6. Bank of America [Checking]: The current market value is $3,292.

Assumptions Relating to IRAs and 401(k) Plans

1. Vanguard IRA. The current value is $12,555, and the growth rate is 5.0%.The age at which distributions will start for George J Jones is 65.George J Jones will take minimum distributions at retirement.

Assumptions Relating to Defined Benefit Pensions

1. School district.

4/4/2011

Key Entries and Assumptions (cont.)


The plan is owned by Marianne P Jones.The monthly benefit is $945.This assumes the participant works until the cut-off date and begins receiving payments at age 65.The discount rate is 4.32%.We are using mortality table RP-2000.

Assumptions Relating to Debts

1. MasterCard Bank Two. The current balance is $3,456. The current rate is 12.000%.The monthly payment is $75.00.

2. VISA Country Card. The current balance is $7,750. The current rate is 14.000%.The monthly payment is $120.00.

4/4/2011


Observations

** High Priority Issues

Tax

Alternative Minimum Tax The Alternative Minimum Tax (AMT) applies for George in 2011. Thesoftware is using the statutory AMT threshold, which calls for a jump up in AMT thisyear and in future years. Every year, though, in December, Congress has lowered the tax-- but just for the year then ending. On the "View/Edit Taxes" Report, at theAlternative Minimum Tax line, you may "X" a box to indicate that you think Congress willcontinue to lower the tax each year. This may dramatically affect the AlternativeMinimum Tax computation. This is a hard call: you are predicting the future. We have norecommendation either way.

** Other Observations

Tax

Exemptions May Not Benefit Party The Alternative Minimum Tax (AMT) applies for George in2011. One effect of the Alternative Minimum Tax may be to offset the tax benefit ofclaiming the exemption for children. If you see that a party's tax does not change whenyou give that party the exemption for a child, the AMT may be the reason. The same thingapplies also to state taxes, property taxes, medical deductions, and the standarddeduction.

Cash Flow / Budget Report

Accumulated Debt Interest Expense Marianne has "Accumulated Debt Interest Expense" in atleast one year in the cash flow projections. This note explains what that is and, if youwish, how to remove it. In a nutshell, "Accumulated Debt Interest Expense" is borrowingto cover negative cash flow. When expenses and taxes are more than income, a party hasnegative cash flow. In the software, as in real life, when there is negative cash flow,we first spend down prior Accumulated Savings (if any), then we sell Cash & Investments,then we liquidate IRAs and 401ks. If we have exhausted those assets, we borrow. Thisborrowing results in negative Accumulated Savings. The interest on this borrowingresults in "Accumulated Debt Interest Expense." You may change the rate of thisinterest on the Assumptions screen. If you change the rate of this interest to zero,there will be no interest on the borrowing, and this column will disappear.

4/4/2011


Total Property Division (Marital plus Separate)



Real Estate Equity40 Winding Way (1) $40,000 $90,000 $130,000

Total Value $450,0001st Mortgage $320,000Equity $130,000

Vacation Home $81,250 $0 $81,250Total Value $100,0001st Mortgage $18,750Equity $81,250

Total Real Estate Equity $121,250 57% $90,000 43% $211,250


First Union -- -- $1,875Bank of America (2) -- $25,000 $25,000Bank of America -- -- $3,292Total Cash-Equivalent $0 0% $25,000 100% $30,167


Total Investments $0 0% $25,000 100% $72,922


Personal ItemsJewelry $1,500 $0 $1,500Paintings (3) $700 $0 $700Honda civic -- -- $21,000Toyota Corolla -- -- $24,000Total Personal Items $2,200 100% $0 0% $47,200

Subtotal Non-Retirement $123,450 52% $115,000 48% $331,372


4/4/2011

Total Property Division (Marital plus Separate) (cont.)


Property Statement report for George J Jones and Marianne P Jones.



Subtotal Retirement $12,555 21% $46,673 79% $59,228

Total Assets $136,005 46% $161,673 54% $390,600

DebtsMasterCard Bank Two ($1,728) ($1,728) ($3,456)VISA Country Card ($3,875) ($3,875) ($7,750)Total Debt ($5,603) 50% ($5,603) 50% ($11,206)

Total Debts ($5,603) 50% ($5,603) 50% ($11,206)

Total Assets $136,005 46% $161,673 54% $390,600Total Debts ($5,603) 50% ($5,603) 50% ($11,206)Total Property $130,402 46% $156,070 54% $379,394

Note: $92,922 is unallocated. Also, "Total Amount" column may not add due to rounding.


4/4/2011

Total Property Division (Marital plus Separate) (cont.)


Property Division:

George - $130,402 - (45.5%).

Marianne - $156,070 - (54.5%).

George

Marianne

4/4/2011


Marital and Separate Property

This report shows for George J Jones and Marianne P Jones, each item of property, its current value, allocation between marital and separate, and who is keeping it. It also shows totals for each propertytype.

Total Total Total George Marianne Equity Marital Separate Total Total

Real Estate Equity (*)40 Winding Way (1) $130,000 $80,000 $50,000 $40,000 $90,000Vacation Home $81,250 $81,250 $0 $81,250 $0Real Estate Equity (*) $211,250 $161,250 $50,000 $121,250 $90,000

InvestmentsFirst Union $1,875 $1,875 -- -- --Vanguard Index 500 $12,755 $12,755 -- -- --Bank of America (2) $25,000 $0 $25,000 -- $25,000Nuveen Bond Fund $10,000 $10,000 -- -- --Municipal Bonds $20,000 $20,000 -- -- --Bank of America $3,292 $3,292 -- -- --Investments $72,922 $47,922 $25,000 $0 $25,000

BusinessesMary Kay franchise $0 $0 $0 $0 $0

Personal ItemsJewelry $1,500 $1,500 $0 $1,500 $0Paintings (3) $700 $700 $0 $700 $0Honda civic $21,000 $21,000 -- -- --Toyota Corolla $24,000 $24,000 -- -- --Personal Items $47,200 $47,200 $0 $2,200 $0

IRA/401(k)Vanguard IRA $12,555 $12,555 $0 $12,555 $0

Defined Benefit PensionSchool district $46,673 $38,029 $8,644 $0 $46,673

DebtsMasterCard Bank Two ($3,456) ($3,456) $0 ($1,728) ($1,728)VISA Country Card ($7,750) ($7,750) $0 ($3,875) ($3,875)Debts ($11,206) ($11,206) $0 ($5,603) ($5,603)

TotalsTotals $379,394 $295,750 $83,644 $130,402 $156,070% of Total Equity 100% 78% 22% 34% 41%% of Total Allocated 132% 103% 29% 46% 54%% of Marital Equity 100%

Total allocated (George J Jones total plus Marianne P Jones total): $286,472.Total unallocated: $92,922.Total equity (Total allocated + Total unallocated): $379,394.

4/4/2011

Marital and Separate Property (cont.)


Sep Prop Sep Prop George George To + / From - Marianne Marianne To + / From - Marital Separate George Marital Separate Marianne

Real Estate Equity (*)40 Winding Way (1) $40,000 $0 $0 $40,000 $50,000 $0Vacation Home $81,250 $0 $0 $0 $0 $0Real Estate Equity (*) $121,250 $0 $0 $40,000 $50,000 $0

InvestmentsFirst Union -- -- -- -- -- --Vanguard Index 500 -- -- -- -- -- --Bank of America (2) -- -- -- -- $25,000 --Nuveen Bond Fund -- -- -- -- -- --Municipal Bonds -- -- -- -- -- --Bank of America -- -- -- -- -- --Investments $0 $0 $0 $0 $25,000 $0

BusinessesMary Kay franchise $0 $0 $0 $0 $0 $0

Personal ItemsJewelry $1,500 $0 $0 $0 $0 $0Paintings (3) $700 $0 $0 $0 $0 $0Honda civic -- -- -- -- -- --Toyota Corolla -- -- -- -- -- --Personal Items $2,200 $0 $0 $0 $0 $0

IRA/401(k)Vanguard IRA $12,555 $0 $0 $0 $0 $0

Defined Benefit PensionSchool district $0 $0 $0 $38,029 $8,644 $0

DebtsMasterCard Bank Two ($1,728) $0 $0 ($1,728) $0 $0VISA Country Card ($3,875) $0 $0 ($3,875) $0 $0Debts ($5,603) $0 $0 ($5,603) $0 $0

TotalsTotals $130,402 $0 $0 $72,426 $83,644 $0% of Total Equity 34% 0% 0% 19% 22% 0%% of Total Allocated 46% 0% 0% 25% 29% 0%% of Marital Equity 44% 24%

Total allocated (George J Jones total plus Marianne P Jones total): $286,472.Total unallocated: $92,922.Total equity (Total allocated + Total unallocated): $379,394.

(*) Real Estate Footnotes:(1) 40 Winding Way: Equity of $130,000 equals: current value of $450,000, less first mortgage of $320,000.(2) Vacation Home: Equity of $81,250 equals: current value of $100,000, less first mortgage of $18,750.

4/4/2011

Marital and Separate Property (cont.)



4/4/2011


Marital Property Division on an After-Tax Basis

Total Marital Property After Tax:George $ 125,882 (67.1%)Marianne $ 61,778 (32.9%)

(a) (b) (c) (d) (e) (f) (g)Pre-tax --------- George ------------- --------- Marianne-------------Marital % % After Tax % % After Tax

Description Equity Kept Paid Equity Kept Paid EquityIn Tax (a*b*(1-c)) In Tax (a*e*(1-f))

Real Estate40 Winding Way 80,000 50 0.00 40,000 50 0.00 40,000Vacation Home 81,250 100 0.00 81,250 0 0.00 0Total Real Estate 121,250 40,000

Cash & InvestmentsFirst Union 1,875 0.00 0 0.00 0Vanguard Index 500 12,755 0.00 0 0.00 0Bank of America 0 0.00 0 0.00 0Nuveen Bond Fund 10,000 0.00 0 0.00 0Municipal Bonds 20,000 0.00 0 0.00 0Bank of America 3,292 0.00 0 0.00 0Total Cash & Investments 0 0

BusinessesMary Kay franchise 0 0 0.00 0 100 0.00 0Total Businesses 0 0

Personal ItemsJewelry 1,500 100 0.00 1,500 0 0.00 0Paintings 700 100 0.00 700 0 0.00 0Honda civic 21,000 0.00 0 0.00 0Toyota Corolla 24,000 0.00 0 0.00 0Total Personal Items 2,200 0

IRAs and 401(k)sVanguard IRA 12,555 100 0.36 8,035 0 0.00 0Total IRAs and 401(k)s 8,035 0

Defined Benefit PensionSchool district 38,029 0 0.28 0 100 0.28 27,381Total Defined Benefit Pension 0 27,381

DebtsMasterCard Bank Two 3,456 50 0.00 1,728 50 0.00 1,728VISA Country Card 7,750 50 0.00 3,875 50 0.00 3,875Total Debts 5,603 5,603

Total Marital Property After Tax 125,882 61,778

4/4/2011


Tax Calculation

Taxes for George J Jones in 2011 are $50,092, and taxes for Marianne P Jones are $6,277.

George Marianne Filing Separate Head Hsld Filing Status in 2011

3 1 Number of exemptions

Income:175,000 49,400 Wages and salary.

0 0 Taxable interest income.0 500 Taxable dividend income.0 12,000 Spousal Maintenance income.0 2,000 Business and farm income.0 0 Capital gain taxable.0 0 Other gains and losses.0 0 Taxable IRA and pension income.0 0 Rent, royalty, partnership, S corporation.0 0 Social Security taxable.

8,000 0 Other income.

183,000 63,900 Taxable gross income.

Adjustments:0 0 Payroll deductions for health, etc.0 0 IRA/401k deduction.0 0 Moving expenses.0 123 Deduction of 1/2 of self-employment tax.0 0 Part of health insurance for self-employed people.

12,000 0 Spousal Maintenance paid.0 0 Interest on education loans.0 0 Other deductions.

12,000 123 Total adjustments.

171,000 63,777 Adjusted Gross Income ("AGI") = gross income - total adjustments).

Itemized Deductions:3,684 600 Total medical expenditures.

75 75 Info only: Medical expense threshold % (7.5% or 10.0%, depending on year and age).12,825 4,783 Info only: Medical expense threshold = Medical expense threshold % * AGI

0 0 Deductible medical (= medical expenses in excess of threshold).0 0 State income taxes.0 0 Local income taxes.0 3,000 Real estate taxes.0 23,279 Mortgage interest.

2,000 0 Charitable contributions.50 240 Miscellaneous, subject to 2% AGI threshold.

0 0 miscellaneous, after 2% AGI threshold.0 0 Miscellaneous, not subject to 2% AGI threshold.

2,000 26,279 Itemized deductions before phase-out.2,000 26,279 Itemized deductions after phase-out.5,800 8,500 Compare: standard deduction.

4/4/2011

Tax Calculation (cont.)


George Marianne

Exemptions:11,100 3,700 Deduction for exemptions before phase-out.11,100 3,700 Deduction for exemptions after phase-out.

Tax Before Credits and Other Taxes:154,100 33,798 Taxable Income

= AGI - greater of itemized or standard deductions - exemptions.

39,580 4,384 Tax before credits and other taxes (from tax table or formula).

33 15 Marginal federal tax bracket (%)

Non-refundable Credits:0 1,144 Child care credit.0 0 Hope education credit.0 0 Lifetime learning credit.0 0 Child credit, after phase-out, non-refundable portion.

0 1,144 Total non-refundable credits (reduce tax, but not below zero).

Refundable Credits:0 0 Child credit, after phase-out, refundable portion.0 0 Earned income credit.0 0 Making work pay credit.0 0 Hope credit, refundable portion.

0 0 Total refundable credits (can reduce tax below zero and generate a payment from the IRS).

Other Taxes on Form 1040:0 0 Tax on retirement plan premature distribution.

3,372 0 Alternative minimum tax.0 0 Lump-sum distribution 5- or 10- year averaging.0 246 Self-employment tax.0 0 Unearned Income Medicare Contribution.

Total Federal Income Tax: = tax before credits and other taxes - total nonrefundable credits (down to zero) - total refundable credits + other taxes on Form 1040

42,952 3,486 Total Federal Income Tax.23 5 Average federal tax rate (= Fed Tax / Gross Income) (%)

Taxes Not on Form 1040:4,486 2,075 FICA Taxes.2,654 716 Medicare Taxes.

0 0 State Income Tax (estimate only)0 0 Local Wage Tax.

Total Taxes:

4/4/2011

Tax Calculation (cont.)


50,092 6,277 Total taxes.

4/4/2011


Five Year Projection

Projections for George J Jones or Marianne P Jones.

This table shows key income, expense and tax results projected for years, 1, 2, 3, 4, and 5.The graph below shows net worth projected for 10 years.

# Years 1 2 3 4 5Year 2011 2012 2013 2014 2015

Total IncomeGeorge $183,000 $186,922 $191,099 $195,281 $199,603

Marianne $86,400 $87,405 $88,406 $89,395 $90,399Total Expenses

George $112,962 $114,432 $115,925 $117,451 $119,006Marianne $82,428 $83,073 $83,727 $84,396 $85,076

Total TaxesGeorge $50,092 $47,069 $52,662 $53,855 $55,193

Marianne $6,277 $7,759 $9,640 $10,157 $10,713After-Tax Cash Flow

George $19,946 $25,421 $22,512 $23,975 $25,404Marianne ($2,305) ($3,427) ($4,961) ($5,158) ($5,390)

Year-End Net WorthGeorge $160,180 $201,177 $241,149 $284,451 $331,210

Marianne $170,170 $194,616 $218,619 $243,780 $270,160

Net Worth Projected 10 Years

George Marianne

$0

$200,000

$400,000

$600,000

$800,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Property Statement


This report shows the combined assets and debts for George J Jones and Marianne P Jones,without any division of property.

AmountReal Estate Equity

40 Winding Way (1) $130,000Total Value $450,0001st Mortgage $320,000Equity $130,000

Vacation Home $81,250Total Value $100,0001st Mortgage $18,750Equity $81,250

Total Real Estate Equity $211,250


First Union $1,875Bank of America (2) $25,000Bank of America $3,292Total Cash-Equivalent $30,167

Other Investments:Vanguard Index 500 $12,755Nuveen Bond Fund $10,000Municipal Bonds $20,000Total Other Investments $42,755

Total Investments $72,922

BusinessesMary Kay franchise $0Total Businesses $0

Personal ItemsJewelry $1,500Paintings (3) $700Honda civic $21,000Toyota Corolla $24,000Total Personal Items $47,200

Subtotal Non-Retirement $331,372

4/4/2011

Property Statement (cont.)



AmountIRAs and 401(k)s

Vanguard IRA $12,555Total IRAs and 401(k)s $12,555

Defined Benefit PensionsSchool district $46,673

Total Pensions $46,673

Subtotal Retirement $59,228

Total Assets $390,600

DebtsMasterCard Bank Two ($3,456)VISA Country Card ($7,750)Total Debt ($11,206)

Total Debts ($11,206)

Total Assets $390,600Total Debts ($11,206)Total Property $379,394


4/4/2011


Property Valuations Report

Property Valuations report for George J Jones and Marianne P Jones.

Real Estate and Mortgages:George's Marianne's Value

Description Value Date Value Date To Use40 Winding Way 400,000 3/10/2011 480,000 1/20/2011 450,000Vacation Home 120,000 1/20/2011 85,000 3/10/2011 100,000

Investments, Checking Accounts etc.:George's Marianne's Value

Description Value Date Value Date To UseFirst Union 1,875Vanguard Index 500 12,755Bank of America 25,000Nuveen Bond Fund 10,000Municipal Bonds 20,000Bank of America 3,292

Business:George's Marianne's Value

Description Value Date Value Date To UseMary Kay franchise 0

Personal Effects:George's Marianne's Value

Description Value Date Value Date To UseJewelry 1,500Paintings 700Honda civic 21,000Toyota Corolla 24,000

Life Insurance:

IRA / 401k:George's Marianne's Value

Description Value Date Value Date To UseVanguard IRA 12,555

Defined Benefit Pension:George's Marianne's Value

Description Value Date Value Date To UseSchool district 46,673

Debts:George's Marianne's Value

Description Value Date Value Date To UseMasterCard Bank Two 3,456VISA Country Card 7,750

4/4/2011

Property Valuations (cont.)


Totals: 520,000 565,000 718,144

4/4/2011


Combined Income

This report shows the combined after-tax cash flow of George and Marianne for 2011.

Income or Expense 2011

Wages & Salary 224,400Non-Wage Income 8,000

Business Income 2,000Fin. Invest. 500

Income on Accum Svg 0

Total Income 234,900

Living Expenses 111,150Major Expenses 0

Mortgage Payments 47,400Payments on Debt 2,340

Accum Debt Interest 0

Total Expenses 160,890

Pre-tax Cash flow 74,010

Federal Inc Tax 40,782FICA / Soc Sec 9,931

Total Taxes 50,713

After-tax Cash 23,297

4/4/2011


Budget Report for Children for 2011

The budget report for children lists all the living expenses for the children as well as any major expensessuch as private schools or college which are for the children.

George Marianne Total Expenses for Children per month per month per month Child Care - Day Care. . . . . . . . . . . . . . . . . . . . . $0.00 $476.67 $476.67 Child Education Lunches. . . . . . . . . . . . . . . . . . 100.00 0.00 100.00

Total of Expenses for Children . . . . . . . . . . . . $100.00 $476.67 $576.67

4/4/2011


Sale of Real Estate - Property

No real estate properties are indicated as being sold.

To indicate a property as being sold, enter a year of sale with the real estate information.

4/4/2011


Pension Valuation

This valuation is for Marianne P Jones's plan with School district.

This report values the plan as of the valuation date, which is: 2/10/2011.

Based on the information entered (see below), the value of the pension as of the valuation date is:$46,673, using the RP-2000 mortality tables and a gender-specific approach.

As of 2/10/2011, 81.48% of this pension is so-called 'marital property.'

Using a gender-specific approach, the marital amount of the pension plan is $38,029 (that is, 81.48% of $46,673).

____________________________________________________________Value of Pension at Retirement:

The value of the pension is $166,911 (gender-specific approach) as of regular retirement age.

This is typically more than the value as of the valuation date because, like moneyin a bank account, a pension's value increases over time.

____________________________________________________________This report is based on the following data entered:

Key Dates:11/20/1974 Participant's birth date.

3/7/1998 Date the participant was married.4,693 Number of days from marriage to separation.4,693 Numerator of Coverture Fraction.5,760 Denominator of Coverture Fraction.

4/5/1995 Date the participant started in the plan.1/11/2011 Date the employment stopped being 'marital.'

(This is usually the separation date).2/10/2011 Date to evaluate the plan.

(This should be the date on the pension benefits administrator's statement).65 Participant's regular retirement age.62 Participant's earliest retirement age.NO Is the participant already retired and receiving benefits?

The Plan:$945 Estimated monthly benefit (actual benefit if already retired).1.0% Cost of living adjustment (COLA) percent.

4.32% Interest rate (also known as the "discount rate").

____________________________________________________________Calculation Options Selected:

The pension benefit and marital portion are calculated "as if" the participant works until the cut-off date.

"Cut-off" means the date after which the plan is no longer marital. This is typically the separation date.

The pension's value is calculated assuming the participant retired or will retire on the regular retirement date.The participant is a female.

4/4/2011

(25) Pension Audit Trail


Pension Audit Trail14:57:51 2/21/2011Calculating present value of pension assuming employment through

retirement.Monthly benefit as of Earliest Retirement Age is $985

Using benefit as of EARLIEST retirement age.

Calculating pension value assuming employment through retirement:Number of years to earliest retirement date is 26.8822.Number of years to regular retirement date is 29.8795.Using 26.8822 as the number of years to retirement.Using 62 as the retirement age.

Calculating the present value factors for an annual benefit payment of $1 as of retirement:

Calculating for gender MALE, using the RP-2000 Mortality Table, adjusted for projected declines in mortality.

The initial discount (interest) rate is 5.00%.The cost of living adjustment ("COLA") is 1.00%.Participant's age at retirement is 62.Year 1: Age 62.PV = Present value of $1 payment made at the end of year 1 = 1/(1+r),

where r =0.0500. This is 1/1.0500, which equals 0.9524.

Calculating the present value of $1 payment discounted also for mortality, assuming the participant was alive at retirement:

This equals: PV * (1 - Probability of dying during the year for male gender, assuming the participant lived to retirement).

The probability is derived from the RP-2000 tables, adjusted for projected generational improvements in mortality (Scale AA).

From RP-2000, the probability of living to age 63, given that the participant lived to age 62 (retirement) is 1 - 0.0049 = 0.9951.

For year 1, age 62, the $1 payment discounted also for mortality is PV * 0.9951 = 0.9524 * 0.9951 = 0.9477.

The mortality-weighted present value of $1 paid in the n'th year is thus:B * D * (1 - E) * F, where:B = COLA adjusted benefit = previous year's COLA adjusted benefit * (1 +

COLA percent).D = the cumulative discount rate. This is: 1/(1+r1) * 1/(1+r2) * 1/(1+r3) etc.

Note that, for example, the 5th year's cumulative discount rate = (the cumulative discount rate through year 4) * (1/(1+r) of the 5th year) This is how it is represented below. In the two columns of Time Discount D, the first column is cumulative discount of prior years, and the second column is the (1/1+r) of the current year. This allows us to show variable discount rates. If you are using a single rate, this is the same as the standard 1/(1+r)^n

n = # years since retirement computed so far.E = Probability of dying during current year given that participant lived

through previous year. This value comes from the RP-2000 table. Note: (1 - E) = Probability of living through current year given that participant lived through previous year.

F = Probability of living through previous year given that participant lived through retirement.

4/4/2011



Note: For a given year, F = Previous year's (1-E) * Previous year's F.

Applying this formula, the present value of $1 of pension payment for each year is as follows (notice how little the later years add to the PV):

($1+COLA) * (TIME DISCOUNT D) * (1 - PROB E) *(PROB F) = PVAge 62: 1.0000 * 1.0000 * (1/1+0.0500) * (1 - 0.0049) * 1.0000) = 0.9477.Age 63: 1.0100 * 0.9524 * (1/1+0.0500) * (1 - 0.0058) * 0.9951) = 0.9063.Age 64: 1.0201 * 0.9070 * (1/1+0.0500) * (1 - 0.0064) * 0.9893) = 0.8662.Age 65: 1.0303 * 0.8638 * (1/1+0.0500) * (1 - 0.0071) * 0.9830) = 0.8272.Age 66: 1.0406 * 0.8227 * (1/1+0.0500) * (1 - 0.0083) * 0.9759) = 0.7891.Age 67: 1.0510 * 0.7835 * (1/1+0.0500) * (1 - 0.0092) * 0.9678) = 0.7521.Age 68: 1.0615 * 0.7462 * (1/1+0.0500) * (1 - 0.0096) * 0.9590) = 0.7165.Age 69: 1.0721 * 0.7107 * (1/1+0.0500) * (1 - 0.0105) * 0.9498) = 0.6820.Age 70: 1.0829 * 0.6768 * (1/1+0.0500) * (1 - 0.0111) * 0.9398) = 0.6487.Age 71: 1.0937 * 0.6446 * (1/1+0.0500) * (1 - 0.0121) * 0.9294) = 0.6165.Age 72: 1.1046 * 0.6139 * (1/1+0.0500) * (1 - 0.0132) * 0.9181) = 0.5852.Age 73: 1.1157 * 0.5847 * (1/1+0.0500) * (1 - 0.0145) * 0.9060) = 0.5547.Age 74: 1.1268 * 0.5568 * (1/1+0.0500) * (1 - 0.0159) * 0.8929) = 0.5251.Age 75: 1.1381 * 0.5303 * (1/1+0.0500) * (1 - 0.0184) * 0.8787) = 0.4958.Age 76: 1.1495 * 0.5051 * (1/1+0.0500) * (1 - 0.0203) * 0.8625) = 0.4672.Age 77: 1.1610 * 0.4810 * (1/1+0.0500) * (1 - 0.0234) * 0.8450) = 0.4389.Age 78: 1.1726 * 0.4581 * (1/1+0.0500) * (1 - 0.0272) * 0.8252) = 0.4107.Age 79: 1.1843 * 0.4363 * (1/1+0.0500) * (1 - 0.0315) * 0.8028) = 0.3826.Age 80: 1.1961 * 0.4155 * (1/1+0.0500) * (1 - 0.0367) * 0.7775) = 0.3545.Age 81: 1.2081 * 0.3957 * (1/1+0.0500) * (1 - 0.0430) * 0.7490) = 0.3263.Age 82: 1.2202 * 0.3769 * (1/1+0.0500) * (1 - 0.0505) * 0.7167) = 0.2981.Age 83: 1.2324 * 0.3589 * (1/1+0.0500) * (1 - 0.0559) * 0.6805) = 0.2707.Age 84: 1.2447 * 0.3418 * (1/1+0.0500) * (1 - 0.0655) * 0.6425) = 0.2433.Age 85: 1.2572 * 0.3256 * (1/1+0.0500) * (1 - 0.0722) * 0.6005) = 0.2172.Age 86: 1.2697 * 0.3101 * (1/1+0.0500) * (1 - 0.0794) * 0.5571) = 0.1923.Age 87: 1.2824 * 0.2953 * (1/1+0.0500) * (1 - 0.0931) * 0.5129) = 0.1678.Age 88: 1.2953 * 0.2812 * (1/1+0.0500) * (1 - 0.1093) * 0.4651) = 0.1437.Age 89: 1.3082 * 0.2678 * (1/1+0.0500) * (1 - 0.1201) * 0.4143) = 0.1216.Age 90: 1.3213 * 0.2551 * (1/1+0.0500) * (1 - 0.1408) * 0.3645) = 0.1005.Age 91: 1.3345 * 0.2429 * (1/1+0.0500) * (1 - 0.1527) * 0.3132) = 0.0819.Age 92: 1.3478 * 0.2314 * (1/1+0.0500) * (1 - 0.1766) * 0.2654) = 0.0649.Age 93: 1.3613 * 0.2204 * (1/1+0.0500) * (1 - 0.1899) * 0.2185) = 0.0506.Age 94: 1.3749 * 0.2099 * (1/1+0.0500) * (1 - 0.2031) * 0.1770) = 0.0388.Age 95: 1.3887 * 0.1999 * (1/1+0.0500) * (1 - 0.2320) * 0.1411) = 0.0286.Age 96: 1.4026 * 0.1904 * (1/1+0.0500) * (1 - 0.2458) * 0.1083) = 0.0208.Age 97: 1.4166 * 0.1813 * (1/1+0.0500) * (1 - 0.2591) * 0.0817) = 0.0148.Age 98: 1.4308 * 0.1727 * (1/1+0.0500) * (1 - 0.2928) * 0.0605) = 0.0101.Age 99: 1.4451 * 0.1644 * (1/1+0.0500) * (1 - 0.3063) * 0.0428) = 0.0067.Age 100: 1.4595 * 0.1566 * (1/1+0.0500) * (1 - 0.3193) * 0.0297) = 0.0044.Age 101: 1.4741 * 0.1491 * (1/1+0.0500) * (1 - 0.3586) * 0.0202) = 0.0027.Age 102: 1.4889 * 0.1420 * (1/1+0.0500) * (1 - 0.3717) * 0.0130) = 0.0016.Age 103: 1.5038 * 0.1353 * (1/1+0.0500) * (1 - 0.3830) * 0.0081) = 0.0010.Age 104: 1.5188 * 0.1288 * (1/1+0.0500) * (1 - 0.3920) * 0.0050) = 0.0006.Age 105: 1.5340 * 0.1227 * (1/1+0.0500) * (1 - 0.3979) * 0.0031) = 0.0003.Age 106: 1.5493 * 0.1169 * (1/1+0.0500) * (1 - 0.4000) * 0.0018) = 0.0002.Age 107: 1.5648 * 0.1113 * (1/1+0.0500) * (1 - 0.4000) * 0.0011) = 0.0001.Age 108: 1.5805 * 0.1060 * (1/1+0.0500) * (1 - 0.4000) * 0.0007) = 0.0001.Age 109: 1.5963 * 0.1009 * (1/1+0.0500) * (1 - 0.4000) * 0.0004) = 0.0000.Age 110: 1.6122 * 0.0961 * (1/1+0.0500) * (1 - 0.4000) * 0.0002) = 0.0000.Age 111: 1.6283 * 0.0916 * (1/1+0.0500) * (1 - 0.4000) * 0.0001) = 0.0000.

4/4/2011



Age 112: 1.6446 * 0.0872 * (1/1+0.0500) * (1 - 0.4000) * 0.0001) = 0.0000.Age 113: 1.6611 * 0.0831 * (1/1+0.0500) * (1 - 0.4000) * 0.0001) = 0.0000.Age 114: 1.6777 * 0.0791 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 115: 1.6945 * 0.0753 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 116: 1.7114 * 0.0717 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 117: 1.7285 * 0.0683 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 118: 1.7458 * 0.0651 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 119: 1.7633 * 0.0620 * (1/1+0.0500) * (1 - 0.4000) * 0.0000) = 0.0000.Age 120: 1.7809 * 0.0590 * (1/1+0.0500) * (1 - 1.0000) * 0.0000) = 0.0000.

Thus, the mortality-weighted present value of a $1 payment starting at retirement, as of retirement,

for gender male is the sum of these numbers, which is $14.3768.

Present value of actual annual benefit as of retirement for this gender = Value of $1 * Monthly Benefit * 12 months. = $14.3768 * $985.00 * 12 = $169,933.36.

Note: The result of this multiplication will not equal the Present Value exactly, because of rounding.

Discounting back to the Valuation Date:

Calculating mortality-weighted present value discount factor retirement back to the valuation date.

Calculating for gender MALE, using the RP-2000 Mortality Table, adjusted for projected declines in mortality.

Participant's age at valuation date is 35.12 years .The number of full years to discount is the age at retirement (62) minus age

at valuation date (35) minus 1, which equals 26.The fractional year from the valuation date to the participant's next

birthday is 35.12 - 35 = 0.88.The discount rate (interest rate) is 5.00%.Calculating present value (not accounting for mortality):The present value of a $1 payment made at age 62) discounted the number of full years is calculated as: 1/(1+r)^n,

where r=discount rate and n=# of full years. The ^ symbol means "raised to the power of." This calculates to 1/(1+0.0500)^26 = 0.2812.

Discounting this value for the fractional year to the next birthday, we get 0.2812 * 1 / (1+0.0500)^0.88 = 0.2694.

Calculating the further discount for mortality:Start with the probability that participant lives to his or her next birthday.

This is (1 - the probability that he or she dies before the next birthday). The probability that he or she dies before the next birthday is, approximately: fraction of year remaining to next birthday * probability he or she dies during this year given that he or she was alive at the beginning of the year. The probability of dying during the year if alive at the beginning for a person of gender male age 35 is (from the RP-2000 mortality tables) 0.0007.

The probability that participant lives to his or her next birthday is thus 1 - (0.88 * 0.0007) = 0.9994.

Continue through retirement: The probability of living through a particular year given that one is alive today is calculated as:

4/4/2011



the probability of living through the previous year * (1 - probability of dying during the particular year given that one lived through the previous year).

Probability of living to age 36 = 0.9994 * (1 - 0.0008) = 0.9986.Probability of living to age 37 = 0.9986 * (1 - 0.0008) = 0.9977.Probability of living to age 38 = 0.9977 * (1 - 0.0009) = 0.9968.Probability of living to age 39 = 0.9968 * (1 - 0.0009) = 0.9959.Probability of living to age 40 = 0.9959 * (1 - 0.0009) = 0.9950.Probability of living to age 41 = 0.9950 * (1 - 0.0010) = 0.9940.Probability of living to age 42 = 0.9940 * (1 - 0.0010) = 0.9930.Probability of living to age 43 = 0.9930 * (1 - 0.0011) = 0.9919.Probability of living to age 44 = 0.9919 * (1 - 0.0011) = 0.9909.Probability of living to age 45 = 0.9909 * (1 - 0.0011) = 0.9897.Probability of living to age 46 = 0.9897 * (1 - 0.0012) = 0.9886.Probability of living to age 47 = 0.9886 * (1 - 0.0012) = 0.9873.Probability of living to age 48 = 0.9873 * (1 - 0.0013) = 0.9861.Probability of living to age 49 = 0.9861 * (1 - 0.0013) = 0.9848.Probability of living to age 50 = 0.9848 * (1 - 0.0013) = 0.9835.Probability of living to age 51 = 0.9835 * (1 - 0.0015) = 0.9821.Probability of living to age 52 = 0.9821 * (1 - 0.0015) = 0.9806.Probability of living to age 53 = 0.9806 * (1 - 0.0016) = 0.9790.Probability of living to age 54 = 0.9790 * (1 - 0.0017) = 0.9773.Probability of living to age 55 = 0.9773 * (1 - 0.0020) = 0.9753.Probability of living to age 56 = 0.9753 * (1 - 0.0023) = 0.9730.Probability of living to age 57 = 0.9730 * (1 - 0.0027) = 0.9704.Probability of living to age 58 = 0.9704 * (1 - 0.0030) = 0.9675.Probability of living to age 59 = 0.9675 * (1 - 0.0034) = 0.9642.Probability of living to age 60 = 0.9642 * (1 - 0.0038) = 0.9606.Probability of living to age 61 = 0.9606 * (1 - 0.0044) = 0.9564.The probability of living to retirement, given thatthe participant is alive at the valuation date is thus 0.9564.To obtain the mortality-weighted present value discount factor, multiply

the non-mortality present value factor * the probability of living to retirement, given that the participant is alive at the valuation date.

The mortality-weighted present value discount factor from retirement back to Valuation Date is thus 0.2694 * 0.9564

= 0.2577.

Calculating the mortality-weighted present value as of the Evaluation Date.

To get this, multiply present value as of Retirement Date * the mortality-weighted factor that discounts from the Retirement Date back to the present (the Valuation Date).

Thus, the present value, weighted for mortality, is: $169,933.36 * 0.2577 = $43,787.

Computing the coverture fraction for pension value being computed assuming employment as of retirement:

Coverture is the fraction of the pension's value that accrued during the marriage.

The numerator is the number of days the participant was employed during the marriage.

The denominator is usually the total number of days employed to retirement.The coverture numerator is the number of days (MM/DD/YYYY format) from

5/5/1992 to 5/9/2005, which is 4,752.

4/4/2011



The coverture denominator is the number of days (MM/DD/YYYY format) from 3/11/1990 to 3/2/2032, which is 15,332.

The coverture fraction is 4,752 / 15,332 = 0.3099.

Computing the marital portion:The marital portion is the present value of the portion of the pension

accrued during the marriage.This is the present value as of valuation date * the coverture fraction.

= $43,787.00 * 30.99% = $13,570.

4/4/2011


Child Support & Spousal Maintenance Summary

Child support and spousal maintenance summary report for George J Jones and Marianne P Jones.

Child Support$22,500 Annual child support payment in current year by George

$1,875 Monthly payment.12% Percent of George's gross income (current year).

Spousal Maintenance$12,000 Annual payment in current year by George

$1,000 Monthly payment.

Child Support + Spousal Maintenance19% Percent of George's gross income (current year).

Filing StatusesFiling Status in Year of Divorce:

George: Married Filing JointlyMarianne: Married Filing Jointly

Filing Status After Divorce:George: Married Filing JointlyMarianne: Married Filing Jointly

ExemptionsNumber of Exemptions (including self) for George: 3Number of Exemptions (including self) for Marianne: 1

4/4/2011


Financial Investment Liquidation

This report shows each asset that is being liquidated.

For each asset, it shows the amount liquidated, the tax basis of the amount liquidated, the gain on theliquidation sale, the tax paid on that gain, and the after-tax amount available to cover the cash flowdeficit.

The tax rate used is a federal capital gains rate of 15.0% plus a state tax rate of 0.00%, for a combinedtax rate of 15.00%.

First Union

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020(a) Year End Value Before Liquidation

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(b) Amount LiquidatedGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(c) Year End Value After Liquidation = (a) - (b)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(d) Party's Basis at Start of YearGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(e) Basis Sold in Liquidation Sale = (d) * ((b) / (a))

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(f) Taxable Gain Or Loss Realized On Liquidation Sale = (b) - (e)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(g) Gain or Loss Allowed for Tax on This Security (based on line (f) and prior security's lines (g)(2) or (g)(3); see Note at bottom of report) (*)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(g) (1) Cumulative Gain or Loss Realized in Liquidations So Far This Year (Prev Security (g)(1) + (f)) (Information Only)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(g) (2) Cumulative Gain or Loss Allowed in Liquidations So Far This Year (Prev security (g)(2) + (g), Not Less Than -3000) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(g) (3) Cumulative Loss *Not* Allowed in Liquidations So Far This Year ((g)(1)-(g)(2)) (Information Only)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(h) Tax on Liquidation Sale = (g) * (capital gain + state tax rate) = (g) * 15.00%

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(i) Amount of Liquidation Sale Used to Fund Negative After-Tax Cash = (b) - (h)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Vanguard Index 500

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011

Financial Investment Liquidation (cont.)


(a) Year End Value Before LiquidationGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(b) Amount Liquidated

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(c) Year End Value After Liquidation = (a) - (b)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(d) Party's Basis at Start of Year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(e) Basis Sold in Liquidation Sale = (d) * ((b) / (a))George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(f) Taxable Gain Or Loss Realized On Liquidation Sale = (b) - (e)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(g) Gain or Loss Allowed for Tax on This Security (based on line (f) and prior security's lines (g)(2) or (g)(3); see Note at bottom of report) (*)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(g) (1) Cumulative Gain or Loss Realized in Liquidations So Far This Year (Prev Security (g)(1) + (f)) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(g) (2) Cumulative Gain or Loss Allowed in Liquidations So Far This Year (Prev security (g)(2) + (g), Not Less Than -3000) (Information Only)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(g) (3) Cumulative Loss *Not* Allowed in Liquidations So Far This Year ((g)(1)-(g)(2)) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(h) Tax on Liquidation Sale = (g) * (capital gain + state tax rate) = (g) * 15.00%George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0(i) Amount of Liquidation Sale Used to Fund Negative After-Tax Cash = (b) - (h)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Bank of America


George 0 0 0 0 0 0 0 0 0 0Marianne 25,750 0 0 0 0 0 0 0 0 0


Marianne 25,750 0 0 0 0 0 0 0 0 0(c) Year End Value After Liquidation = (a) - (b)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 15,000 0 0 0 0 0 0 0 0 0

4/4/2011



(e) Basis Sold in Liquidation Sale = (d) * ((b) / (a))George 0 0 0 0 0 0 0 0 0 0

Marianne 15,000 0 0 0 0 0 0 0 0 0(f) Taxable Gain Or Loss Realized On Liquidation Sale = (b) - (e)

George 0 0 0 0 0 0 0 0 0 0Marianne 10,750 0 0 0 0 0 0 0 0 0

(g) Gain or Loss Allowed for Tax on This Security (based on line (f) and prior security's lines (g)(2) or (g)(3); see Note at bottom of report) (*)George 0 0 0 0 0 0 0 0 0 0

Marianne 10,750 0 0 0 0 0 0 0 0 0(g) (1) Cumulative Gain or Loss Realized in Liquidations So Far This Year (Prev Security (g)(1) + (f)) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 10,750 0 0 0 0 0 0 0 0 0


Marianne 10,750 0 0 0 0 0 0 0 0 0(g) (3) Cumulative Loss *Not* Allowed in Liquidations So Far This Year ((g)(1)-(g)(2)) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 1,613 0 0 0 0 0 0 0 0 0(i) Amount of Liquidation Sale Used to Fund Negative After-Tax Cash = (b) - (h)

George 0 0 0 0 0 0 0 0 0 0Marianne 24,138 0 0 0 0 0 0 0 0 0

Nuveen Bond Fund


George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011




Marianne 0 0 0 0 0 0 0 0 0 0(g) (3) Cumulative Loss *Not* Allowed in Liquidations So Far This Year ((g)(1)-(g)(2)) (Information Only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 0 0 0 0 0 0 0 0 0 0(i) Amount of Liquidation Sale Used to Fund Negative After-Tax Cash = (b) - (h)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Municipal Bonds


George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 0 0 0 0 0 0 0 0 0 0

Bank of America

4/4/2011




George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


Marianne 0 0 0 0 0 0 0 0 0 0

(a) Total Amount of Securities LiquidatedGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 25,750 0 0 0 0 0 0 0 0 0(b) Total Basis Sold In Liquidation Sale

George 0 0 0 0 0 0 0 0 0 0Marianne 15,000 0 0 0 0 0 0 0 0 0

(c) Total Taxable Gain Or Loss On Liquidation Sale = (a) - (b). (Also equals (g)(1) from last security above.)George 0 0 0 0 0 0 0 0 0 0

Marianne 10,750 0 0 0 0 0 0 0 0 0(d) Total Taxable Gain Or Loss Allowed (totals of row (g) above). (Also equals (g)(2) from last security above.)

George 0 0 0 0 0 0 0 0 0 0

4/4/2011



Marianne 10,750 0 0 0 0 0 0 0 0 0(e) Total Taxable Loss *Not* Allowed (equals (g)(3) from last security above). (Info only.)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

(f) Total Tax on Liquidation Sale (tax rate applied to line (d). (Also equals totals of lines (h) above.)George 0 0 0 0 0 0 0 0 0 0

Marianne 1,613 0 0 0 0 0 0 0 0 0(g) Total Amount of Liquidation Sale Used to Fund Negative After-Tax Cash = (a) - (f)

George 0 0 0 0 0 0 0 0 0 0Marianne 24,138 0 0 0 0 0 0 0 0 0

(*) Note: Calculation of line (g), Gain or Loss Recognized for Tax Purposes on this Security, is as follows:If line (f) > 0 (i.e., gain on this security)...- If the Previous Security's line (g)(2) > 0, then line (f).- If the Previous Security's line (g)(2) <= 0, then Previous Security (g)(3)+(f). But this amount is limited so that cumulative loss does not exceed $3,000/yr.If line (f) < 0 (i.e., loss on this security)...- If the Previous Security's line (g)(2) > 0, then line (f), but not more than Previous Security's line (g)(2) + $3,000- If the Previous Security's line (g)(2) < 0, then line (f), but only up to the gap, if any, between prev line (g)(2) and $3,000 of loss.

4/4/2011


IRA / 401(k) Liquidation

There are no IRA/401(k) accounts that are being liquidated.

4/4/2011


Tax Detail (part 1 - AGI)

Tax report for George J Jones or Marianne P Jones.

State and federal taxes are automatically calculated.

Federal taxes are calcluated based on the rules detailed in the Internal Revenue Code.

TX state taxes are estimated as 0.0% of gross income.

Data Entries:

Filing StatusesFiling Status in 2011

George: Married Filing JointlyMarianne: Married Filing Jointly

Filing Status in later years:George: Married Filing JointlyMarianne: Married Filing Jointly

Tax Calculation Detail:

EXEMPTIONS

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Exemptions

George 3 4 4 4 4 4 4 4 4 3Marianne 1 2 2 2 2 2 2 2 2 2

INCOMEWages and salary

George 175,000 178,325 181,713 185,166 188,684 192,269 195,922 199,645 203,438 207,303Marianne 49,400 50,339 51,295 52,270 53,263 54,275 55,306 56,357 57,428 58,519

Taxable interest incomeGeorge 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

Marianne 0 0 0 0 0 0 0 0 0 0Taxable dividend income

George 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377Marianne 500 0 0 0 0 0 0 0 0 0

Spousal Maintenance incomeGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 12,000 12,000 12,000 12,000 12,000 6,000 6,000 6,000 0 0Business and farm income

George 0 0 0 0 0 0 0 0 0 0Marianne 2,000 2,100 2,205 2,315 2,431 2,553 2,680 2,814 2,955 3,103

Capital gain taxableGeorge 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

Marianne 0 0 0 0 0 0 0 0 0 0Other gains and losses

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Taxable IRA and pension incomeGeorge 0 0 0 0 0 0 0 0 0 0

4/4/2011

Tax Detail (part 1 - AGI) (cont.)


Marianne 0 0 0 0 0 0 0 0 0 0Rent, royalty, partnership, S Corporation

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Social Security taxableGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Non-Wage income

George 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000Marianne 0 0 0 0 0 0 0 0 0 0

Taxable gross incomeGeorge 183,000 188,212 192,719 197,192 201,811 206,584 211,650 216,984 222,553 228,434

Marianne 63,900 64,439 65,500 66,585 67,694 62,828 63,986 65,171 60,383 61,622

ADJUSTMENTSPayroll deductions for health, etc.

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

IRA/401k deductionGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Moving expenses

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

1/2 of Self-Employment TaxGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 123 149 156 164 172 181 190 199 209 219Part of Health Insurance for Self-Employed People

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Spousal Maintenance PaidGeorge 12,000 12,000 12,000 12,000 12,000 6,000 6,000 6,000 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Interest on Education Loans

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Other DeductionsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Total AdjustmentsGeorge 12,000 12,000 12,000 12,000 12,000 6,000 6,000 6,000 0 0

Marianne 123 149 156 164 172 181 190 199 209 219

ADJUSTED GROSS INCOME

Adjusted Gross Income (i.e., Gross Income - Total Adjustments)George 171,000 176,212 180,719 185,192 189,811 200,584 205,650 210,984 222,553 228,434

Marianne 63,777 64,290 65,344 66,421 67,522 62,647 63,796 64,972 60,174 61,403

4/4/2011


Tax Detail (part 2 - Deductions)

ITEMIZED DEDUCTIONS:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Total medical expenses

George 3,684 3,754 3,825 3,899 3,973 4,047 4,124 4,203 4,283 4,365Marianne 600 611 623 635 647 659 672 684 698 711

Info only: Medical expense threshold % (7.5% or 10.0%, depending on year and age).George 75 75 100 100 100 100 100 100 100 100

Marianne 75 75 100 100 100 100 100 100 100 100Info only: Medical expense threshold = % shown above * AGI.

George 12,825 13,216 18,072 18,519 18,981 20,058 20,565 21,098 22,255 22,843Marianne 4,783 4,822 6,534 6,642 6,752 6,265 6,380 6,497 6,017 6,140

Deductible Medical (= Medical Expense in Excess of Threshold)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0State Income Taxes

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Real Estate TaxesGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 3,000 3,057 3,115 3,174 3,235 3,296 3,359 3,422 3,488 3,554Local Income Taxes

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Mortgage InterestGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 23,279 21,510 19,612 17,574 15,387 13,037 10,515 7,808 4,900 1,779Charitable Contributions

George 2,000 2,038 2,076 2,116 2,156 2,198 2,240 2,282 2,326 2,370Marianne 0 0 0 0 0 0 0 0 0 0

Miscellaneous, Subject to 2% AGI ThresholdGeorge 50 51 52 53 54 55 56 57 58 59

Marianne 240 245 249 254 259 264 269 274 279 284Miscellaneous, After 2% AGI Threshold

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Miscellaneous, Not Subject to 2% AGI ThresholdGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

PHASE OUT:Itemized Deductions Before Phase-Out

George 2,000 2,038 2,076 2,116 2,156 2,198 2,240 2,282 2,326 2,370Marianne 26,279 24,567 22,727 20,748 18,622 16,333 13,874 11,230 8,388 5,333

Itemized Deductions After Phase-OutGeorge 2,000 2,038 1,987 1,994 1,999 1,823 1,820 1,812 1,620 1,601

Marianne 26,279 24,567 22,727 20,748 18,622 16,333 13,874 11,230 8,388 5,333Compare: Standard Deduction

George 11,600 11,800 12,000 12,250 12,500 12,700 12,950 13,200 13,450 13,700Marianne 11,600 11,800 12,000 12,250 12,500 12,700 12,950 13,200 13,450 13,700

4/4/2011

Tax Detail (part 2 - Deductions) (cont.)


EXEMPTIONS:Deduction for Exemptions Before Phase-Out

George 11,100 15,000 15,200 15,600 15,800 16,200 16,400 16,800 17,200 13,050Marianne 3,700 7,500 7,600 7,800 7,900 8,100 8,200 8,400 8,600 8,700

Deduction for Exemptions After Phase-OutGeorge 11,100 15,000 15,200 15,600 15,800 16,200 16,400 16,800 17,200 13,050

Marianne 3,700 7,500 7,600 7,800 7,900 8,100 8,200 8,400 8,600 8,700Taxable Income = AGI - greater of Itemized or Standard Deduction - Exemptions

George 148,300 149,412 153,519 157,342 161,511 171,684 176,300 180,984 191,903 201,684Marianne 33,798 32,223 35,017 37,873 41,000 38,214 41,722 43,372 38,124 39,003

Tax Before Credits and Other Taxes (from tax table or formula)George 29,594 29,515 35,608 36,530 37,553 40,429 41,569 42,720 45,791 48,496

Marianne 4,141 3,968 5,254 5,681 6,154 5,734 6,259 6,506 5,719 5,854Marginal federal tax bracket (%)

George 28 28 31 31 31 31 31 31 31 31Marianne 15 15 15 15 15 15 15 15 15 15

NON-REFUNDABLE CREDITS (reduce tax, but not below zero):Child Care Credit

George 0 0 0 0 0 0 0 0 0 0Marianne 1,144 1,166 480 480 480 480 0 0 0 0

Hope Education CreditGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Lifetime Learning Credit

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Child Credit, after phase-out, non-refundable portionGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Total Non-refundable CreditsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 1,144 1,166 480 480 480 480 0 0 0 0

REFUNDABLE CREDITS (can reduce tax below zero and generate a payment from the IRS):Child Credit, after phase-out, refundable portion

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Earned Income CreditGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Hope Credit - refundable portion

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Making Work Pay CreditGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011

Tax Detail (part 2 - Deductions) (cont.)


Total Refundable CreditsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

OTHER TAXES on Form 1040:Tax on Early Plan Distribution

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Alternative Minimum TaxGeorge 0 0 1,586 2,087 2,532 3,063 3,526 4,111 4,959 4,236

Marianne 0 0 0 0 0 0 0 0 0 0Lump-Sum Distribution 5- or 10- Year Averaging

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Self-Employment TaxGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 246 297 312 327 343 361 379 398 418 438Unearned Income Medicare Contribution

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Tax Detail (part 3 - Bottom Line)

TOTAL FEDERAL INCOME TAX = Tax Before Credits And Other Taxes - Total Nonrefundable Credits (down to zero)- Total Refundable Credits + Other Taxes on Form 1040

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Total Federal Income Tax

George 0 29,515 37,194 38,617 40,085 43,492 45,095 46,831 50,750 52,732Marianne 40,782 3,099 5,086 5,528 6,017 5,615 6,638 6,904 6,137 6,292

Avg federal tax rate (= Tot fed inc tax / gross inc) (%)George 16 16 19 20 20 21 21 22 23 23

Marianne 5 5 8 8 9 9 10 11 10 10

TAXES NOT ON FORM 1040:FICA Taxes

George 4,486 6,747 6,876 7,006 7,139 7,275 7,413 7,554 7,698 7,844Marianne 2,075 3,121 3,180 3,241 3,302 3,365 3,429 3,494 3,561 3,628

Medicare TaxesGeorge 2,654 2,702 2,751 2,801 2,852 2,904 2,957 3,011 3,066 3,122

Marianne 716 730 744 758 772 787 802 817 833 849State Income Tax (estimate only)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Local wage taxGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

TOTAL TAXES = Total Federal Income Tax + Taxes Not On Form 1040

Total TaxesGeorge 7,140 38,964 46,821 48,424 50,076 53,671 55,465 57,396 61,514 63,698

Marianne 43,819 6,950 9,010 9,527 10,091 9,767 10,869 11,215 10,531 10,769

4/4/2011


Taxable Investment Income Report

Taxable Investment Income Report for George J Jones or Marianne P Jones.

This report shows the numbers leading up to each component of taxable investment income.

The components are taxable interest, dividends, and capital gains.

For details on financial investment income, please see the report on Financial Investment Income.

Data Entries:

Tax Category George MarianneInterest Income (%) 1.00% 1.00%

Dividend Income (%) 1.00% 1.00%Capital Gain Income (%) 1.00% 1.00%

Tax-Free Income (%) 0.00% 0.00%

Taxable Interest Income:Financial Interest Income

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Business Buyout Interest IncomeGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Interest Income on Mortgage Payments Received

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Interest Income on Accumulated SavingsGeorge 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

Marianne 0 0 0 0 0 0 0 0 0 0Interest Income on Property Settlement

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Taxable Interest IncomeGeorge 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

Marianne 0 0 0 0 0 0 0 0 0 0

Taxable Dividend Income:Financial Investment Dividends

George 0 0 0 0 0 0 0 0 0 0Marianne 500 0 0 0 0 0 0 0 0 0

Plus: Business Corporate DividendsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Plus: Dividends on Accumulated Savings

George 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Taxable Dividend IncomeGeorge 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

4/4/2011

Taxable Investment Income Report (cont.)


Marianne 500 0 0 0 0 0 0 0 0 0

Taxable Capital Gain Income:Financial Investment Capital Gain

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Business Buyout Capital GainGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Plus: Capital gain on Accumulated Savings

George 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Taxable Investment Capital gain (not gain on real estate sale)George 0 629 1,002 1,342 1,709 2,105 2,576 3,113 3,705 4,377

Marianne 0 0 0 0 0 0 0 0 0 0

Tax Free Income (information only -- not shown on tax return):Financial Investment Tax Free Income

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Tax-Free Income on Accumulated SavingsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Equals: Tax Free Investment Income

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Alternative Minimum Tax Audit Trail for 2011

10:20:26 4/4/2011AMT Audit Trail for George and Marianne for 2011.

Overview:

The Alternative Minimum Tax is actually an entire parallel tax system.

It was originally created to prevent high-income taxpayers from reducing their tax "too much" through deductions.

Tax is always computed under both systems. The taxpayer always pays whichever tax is higher: tax under theregular system, or tax calculated under the AMT system.

If the tax calculated under the regular system is higher, then the tax computed under the AMT system remains invisible.You never see it and you never need to know about it.

If the tax calculated under the AMT system is higher, the distance from the regular tax to the Alternative Minimum Tax islabeled on the tax return as "the Alternative Minimum Tax."

It might be more helpful, however, to be aware that actually there are two tax systems, "regular" and "alternative,"and that the taxpayer pays whichever gives the higher tax amount.

The basic structure of the Alternative Minimum Tax system is to apply a flat rate of either 26% or 28% (depending onincome level) to all income over a threshold. There is an exemption, which is phased out for higher income taxpayers.

The income to which this flat tax applies has been stripped of many tax benefits and deductions.

The tax benefits and deductions that may be lost under the AMT system include:

- The deduction for dependents (exemptions).- The deduction for state and local taxes.- The benefit of a lower rate for dividend and capital gain income.- The standard deduction.- Medical deductions.- Miscellaneous itemized deductions (e.g., employee business expenses).

Thus, if the taxpayer has any of these items, he or she may find that the Alternative Minimum Tax computation is higherthan the Regular Tax computation, and that he or she "has" Alternative Minimum Tax.

Details of the Alternative Minimum Tax Computation for George and Marianne for 2011.

__________________________________Standard Deduction

George and Marianne is itemizing, so there is no preference for Standard Deduction.

__________________________________Medical deductions

No preference for medical deductions.

__________________________________State and Local Tax Deductions

4/4/2011

Alternative Minimum Tax Audit Trail (cont.)


All state and local taxes are a preference.The state and local tax preference is $3,000.

__________________________________Miscellaneous Itemized Deductions

All miscellaneous itemized deductions are a preference.The miscellaneous itemized deductions preference is $0.

__________________________________Total Preferences

Total preferences are $3,000.

__________________________________Alternative Minimum Taxable Income ("AMTI")

AMTI = $3,000 (Total Preferences)+ $234,777 (AGI)- $28,279 (Larger of standard or itemized deductions)- $0 (Itemized Deduction Limitation Amount)+ $0 (Net Operating Loss)- $0 (Alt Min Tax Net Operating Loss)= $209,498. This is Alternative Minimum Taxable Income ("AMTI").

__________________________________Exemption Threshold and Baseline.

George and Marianne's filing status is Married Filing Jointly.

The Alternative Minimum Tax Baseline for this filing status for 2011 is $74,450.The Alternative Minimum Tax Exemption Threshold for this filing status for 2011 is $150,000.

__________________________________Exemption Adjustment for Higher Incomes.

If AMTI is more than the exemption threshold ($150,000), the exemption amount is reduced below the Exemption Threshold.That is the case here.The AMT Exemption Amount is: the AMT Baseline minus 25% of the amount by which AMTI exceeds the AMT Exemption Threshold (but not less than zero).AMT Exemption Amount = $74,450 - (0.25 * ($209,498 - $150,000)).The AMT Exemption Amount is $59,575.

The AMTI after Exemption Amount is AMTI - Exemption Amount = $209,498 - $59,575 = $149,923.

__________________________________Line-by-line Calculations.

In the following lines, we use variables A1 through A22 to show the intermediate values in this line-by-line calculation.A1 = AMTI After Exemption = $149,923.A2 = Capital gain from Sch D Amount 1 = $500.A3 = Capital gain from Sch D Amount 2 = $0.A4 = A2 + A3 = $500.A5 = Schedule D Amount 3 = $500.A6 = smaller of A4 or A5 = $500.

4/4/2011

Alternative Minimum Tax Audit Trail (cont.)


A7 = smaller of A1 - A6, not less than zero = $149,423.Now we apply the AMT tax rate to $149,423.The amount to which we are applying the AMT tax rate is not more than $175,000 ($87,500 if filing separately).So the AMT tax amount on this line is 26% of $149,423, or $38,850.A8 = Initial AMT Tax Amount =$38,850.A9 = Schedule D line 36 = $0A10 = The smallest of A1, A2, and A9, that is, the smallest of $149,923, $500, and $0, which is $0.A11 = The AMT capital gains rate specified for 2011 * A10 = 0% of $0 = $0.A12 = the smaller of A1 or A2, which is $500.A13 = A10, which is $0.A14 = A12 - A13, which is $500 - $0 = $500.A15 = The regular capital gains rate for 2011 * A14 = 15% of $500 = $75.A16 = A1 = $149,923.A17 = A7 + A10 + A14 = $149,423 + $0 + $500 = $149,923.A18 = A16 - A17 = $149,923 - $149,923 = $0.A19 = 25% of A18 = 25% of $0 = $0.A20 = A8 + A11 + A15 + A19 = $38,850 + $0 + $75 + $0 = $38,925.Now we apply the AMT tax rate to A1, or $149,923.The amount to which we are applying the AMT tax rate is not more than $175,000 ($87,500 if filing separately).So the AMT tax amount on this line is 26% of $149,923, or $38,980.A21 = AMT Tax on this amount = $38,980.A22 = The smaller of A20 and A21 = the smaller of $38,925 and $38,980 = 38,925.Tentative Minimum Tax Before Foreign Tax Credit is A22, that is, $38,925.The Tentative Minimum Tax = the Tentative Minimum Tax Before Foreign Tax Credit minus Foreign Tax Credit.That is: $38,925 - $0 = $38,925.The Alternative Minimum Tax amount is the Tentative Minimum Tax minus Regular Tax Before Credits and Other Taxes= $38,925 - $41,680 = $0.This is the Alternative Minimum Tax ("AMT") amount.

4/4/2011


State Taxes for 2011

Texas

There is no state income tax in Texas.

George Marianne

0 0 State Tax Amount, no tax.

4/4/2011


FICA, Medicare, and Self-Employment Tax for 2011

FICA Tax for George:175,000 1. Wages and salary for FICA purposes.

8,000 2. Plus: Overtime, Bonus, Commission, and Tips for FICA purposes.3. Less: Payroll Deductions for FICA/Medicare purposes (e.g., Sec 125, FSA, Cafeteria Plan).

183,000 4. Equals: Wages taxable for FICA purposes (line 1 + 2 - 3).106,800 5. Ceiling on amount taxable in 2011.

4.20 6. FICA tax rate on wages (employee portion) (%).4,486 7. FICA Tax. Line 6 * smaller of line 4 or line 5.

Medicare Tax for George:175,000 1. Wage and salary for Medicare purposes.

8,000 2. Plus: Overtime, Bonus, Commission, and Tips for Medicare Tax.3. Less: Payroll Deductions for FICA/Medicare purposes (e.g., Sec 125, FSA, Cafeteria Plan).

183,000 4. Equals: Wages taxable for Medicare tax purposes (line 1 + 2 - 3).0.01 5. Medicare tax rate on wages (employee portion) (%).

2,654 6. Basic Medicare Tax. Line 4 * line 5.0 7. Threshold for high-wage additional Medicare tax (set by statute, based on calendar year)0 8. Income subject to high-wage additional Medicare tax (line 4 - line 7)0 9. Percentage Rate of high-wage additional Medicare tax (10ths of a percent)0 10. Amount of high-wage additional Medicare tax (line 9 * 0.001 * line 8)

2,654 11. Total Medicare Tax (lines 6+10).

Self-Employment Tax for George:1. Self-Employment Income.

92.35 2. Percent of self-employment income that is taxable.3. Income subject to self-employment tax (line 1 * line 2), but not less than zero.4. Wage income subject to FICA.5. Additional wage income subject to FICA tax = $106,800 - line 4.6. FICA component of self-employment tax = 10.4% of the smaller of line 3 or line 5.7. Medicare component of self-employment tax = 2.9% of line 3.8. Basic self-employment tax = line 6 + line 7.

0 9. Threshold for high-wage additional Self-Employment tax (set by statute, based on calendar year)10. Income subject to high-wage additional Self-employment tax (line 1 - line 9 - Medicare line 8)

0 11. Percentage Rate of high-wage additional Self-employment tax (10ths of a percent)12. Amount of high-wage additional self-employment tax (line 9 * 0.001 * line 8)13. Total self-employment tax (lines 6+10).

FICA Tax for Marianne:49,400 1. Wages and salary for FICA purposes.

2. Plus: Overtime, Bonus, Commission, and Tips for FICA purposes.3. Less: Payroll Deductions for FICA/Medicare purposes (e.g., Sec 125, FSA, Cafeteria Plan).

49,400 4. Equals: Wages taxable for FICA purposes (line 1 + 2 - 3).106,800 5. Ceiling on amount taxable in 2011.

4.20 6. FICA tax rate on wages (employee portion) (%).2,075 7. FICA Tax. Line 6 * smaller of line 4 or line 5.

Medicare Tax for Marianne:49,400 1. Wage and salary for Medicare purposes.

2. Plus: Overtime, Bonus, Commission, and Tips for Medicare Tax.3. Less: Payroll Deductions for FICA/Medicare purposes (e.g., Sec 125, FSA, Cafeteria Plan).

49,400 4. Equals: Wages taxable for Medicare tax purposes (line 1 + 2 - 3).

4/4/2011

FICA, Medicare and Self-Employment Taxes (cont.)


0.01 5. Medicare tax rate on wages (employee portion) (%).716 6. Basic Medicare Tax. Line 4 * line 5.

0 7. Threshold for high-wage additional Medicare tax (set by statute, based on calendar year)8. Income subject to high-wage additional Medicare tax (line 4 - line 7)

0 9. Percentage Rate of high-wage additional Medicare tax (10ths of a percent)10. Amount of high-wage additional Medicare tax (line 9 * 0.001 * line 8)

716 11. Total Medicare Tax (lines 6+10).

Self-Employment Tax for Marianne:2,000 1. Self-Employment Income.92.35 2. Percent of self-employment income that is taxable.1,847 3. Income subject to self-employment tax (line 1 * line 2), but not less than zero.

49,400 4. Wage income subject to FICA.57,400 5. Additional wage income subject to FICA tax = $106,800 - line 4.192.09 6. FICA component of self-employment tax = 10.4% of the smaller of line 3 or line 5.

54 7. Medicare component of self-employment tax = 2.9% of line 3.246 8. Basic self-employment tax = line 6 + line 7.

0 9. Threshold for high-wage additional Self-Employment tax (set by statute, based on calendar year)2,000 10. Income subject to high-wage additional Self-employment tax (line 1 - line 9 - Medicare line 8)

0 11. Percentage Rate of high-wage additional Self-employment tax (10ths of a percent)12. Amount of high-wage additional self-employment tax (line 9 * 0.001 * line 8)

246 13. Total self-employment tax (lines 6+10).

4/4/2011


Unearned Income Medicare Contribution Tax for 2011

Unearned Income Medicare Contribution Tax for George:

A. Net Investment Income

0 1. Taxable Interest Income.0 2. Total Dividend Income

3. Less: Excluded dividends (e.g., dividends from corporations where the party actively participates)0 4. Equals: Dividends for this tax (line 2 - line 3)0 5. Taxable Capital Gains

6. Total Rent, Royalty, and Partnership Income7. Less: Rental Income excluded (e.g., from an active-participation rental property).8. Less: Partnership Income excluded (all partnership income).9. Less S Corporation Income excluded (e.g., from an actively particpated trade or business)10. Equals Rent, Royalty and Partnership Income included (lines 6-7-8-9).

0 11. Net investment income (lines 1+4+5+10)

B. Modified AGI over Threshold

171,000 1. Modified Adjusted Gross Income (same as AGI).250,000 2. Threshold (based on filing status and calendar year)

0 3. Modified AGI over Threshold (line 1 - line 2)

C. Calculation of tax

0 1. Smaller of Net Investment Income and Modified AGI over Threshold (smaller of line A.11 and B.3)0.0 2. Unearned Income Medicare Contribution tax rate (%)

0 3. Unearned Income Medicare Contribution Tax (line 1 * line 2)

Unearned Income Medicare Contribution Tax for Marianne:

A. Net Investment Income

1. Taxable Interest Income.500 2. Total Dividend Income

3. Less: Excluded dividends (e.g., dividends from corporations where the party actively participates)500 4. Equals: Dividends for this tax (line 2 - line 3)

5. Taxable Capital Gains6. Total Rent, Royalty, and Partnership Income7. Less: Rental Income excluded (e.g., from an active-participation rental property).8. Less: Partnership Income excluded (all partnership income).9. Less S Corporation Income excluded (e.g., from an actively particpated trade or business)10. Equals Rent, Royalty and Partnership Income included (lines 6-7-8-9).

500 11. Net investment income (lines 1+4+5+10)

B. Modified AGI over Threshold

63,777 1. Modified Adjusted Gross Income (same as AGI).250,000 2. Threshold (based on filing status and calendar year)

4/4/2011

Unearned Income Medicare Contribution Tax (cont.)


3. Modified AGI over Threshold (line 1 - line 2)

C. Calculation of tax

1. Smaller of Net Investment Income and Modified AGI over Threshold (smaller of line A.11 and B.3)0.0 2. Unearned Income Medicare Contribution tax rate (%)

3. Unearned Income Medicare Contribution Tax (line 1 * line 2)

4/4/2011


Wages and Salary

Wages and salary report for George J Jones and Marianne P Jones.

For each party whose wages show level or steady growth, data entries with respect to wages and salaries areannualized, then increased by inflation or other percent specified.

Data Entries:

George's Wage and Salary EntriesRed Rock, LLCGeorge's wages will be level or show steady growth for a period of years.George's wages are $175,000 per year.George's wages will increase with inflation (1.9% per year) until retirement.George will retire at age 65.

Marianne's Wage and Salary EntriesSchool districtMarianne's wages will be level or show steady growth for a period of years.Marianne's wages are $950 per week.Marianne's wages will increase with inflation (1.9% per year) until retirement.Marianne will retire at age 65.

George's Wage and Salary Income

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Red Rock, LLC

175,000 178,325 181,713 185,166 188,684 192,269 195,922 199,645 203,438 207,303

Marianne's Wage and Salary Income

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020School district

49,400 50,339 51,295 52,270 53,263 54,275 55,306 56,357 57,428 58,519

Wage and Salary Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020George 175,000 178,325 181,713 185,166 188,684 192,269 195,922 199,645 203,438 207,303

Marianne 49,400 50,339 51,295 52,270 53,263 54,275 55,306 56,357 57,428 58,519

4/4/2011

Wages and Salary (cont.)


Wages and Salary Graph:

George Marianne

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Non-Wage Income

Non-Wage income report for George J Jones or Marianne P Jones.

Wage-Like and Wage Replacement Income items for George:

Item Start End Weekly Monthly Annual Non-tax?

Wage-Like and Wage Replacement Income items for Marianne:No wage-like income items have been entered for Marianne.

Non-wage income for each of the next 10 years.

For George:

Bonuses8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000

For Marianne:No non-wage income items have been entered for Marianne.

Total Non-Wage IncomeTotal Non-Wage Income - George

8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000Total Non-Wage Income - Marianne

0 0 0 0 0 0 0 0 0 0

Non-Wage Income:

George Marianne

$0

$2,000

$4,000

$6,000

$8,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Business Income

Businesses income report for George J Jones or Marianne P Jones.

The totals in this report are based on data entries of:

1. Partnership/proprietorship net cash flow.2. Corporate dividends.3. Taxable receivables, partnership regular payments, corporate buyouts,proprietorship interest deductions.4. Interest income on buyout notes.5. Non-taxable receivables, one-time cash, and principal on notes.6. Less: buyout payments made (if it is specified to subtract them from the buyer's income).7. Income from sale of the business to an outside party.

Data Entries:

Mary Kay franchise.

1. Partnership / Proprietorship / S Corp net cash flow.$2,000 Current annual net cash flow of the business.0.00% Percent being kept by George.

$0 Current annual amount being kept by George.$2,000 Current annual amount being kept by Marianne.

5.0% Percent by which this increases each year.

2. Corporate Dividends.

3. Taxable receivables, partnership regular payments, corporate buyouts, proprietorship interest.

4. Interest income on buyout notes.

5. Non-taxable receivables, one-time cash, and principal on notes.

6. Subtractions from income: Buyout payments made (if specified).It has been specified that the calculations are NOT deducting business buyout payments from the buyer's income.

7. Income from Sale of the Business to an Outside Party.

Business Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201. Partnership/proprietorship net cash flow

George 0 0 0 0 0 0 0 0 0 0Marianne 2,000 2,100 2,205 2,315 2,431 2,553 2,680 2,814 2,955 3,103

2. Corporate dividendsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 03. Taxable Receivables, Partnership Regular Payments, Corporate Buyouts, Proprietorship Interest Deductions

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4. Interest Income on Buyout NotesGeorge 0 0 0 0 0 0 0 0 0 0

4/4/2011

Business Income (cont.)


Marianne 0 0 0 0 0 0 0 0 0 05. Non-Taxable Receivables, One-Time Cash, And Principal On Notes

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

6. Subtract: buyout payments made (if it is specified to subtract them from the buyer's income.)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 07. Income from sale of business to outside party.

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Total Business Income (Per Year)George 0 0 0 0 0 0 0 0 0 0

Marianne 2,000 2,100 2,205 2,315 2,431 2,553 2,680 2,814 2,955 3,103

Total Business Income Table:

George Marianne

$0

$1,000

$2,000

$3,000

$4,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Business Income and Expense Detail

Income and expense detail has not been entered for any businesses.

4/4/2011


Financial Investment Income

Financial investment report for George J Jones or Marianne P Jones.

Totals in this report are the amount of annual income entered for each financial investment asset,increased by the growth rate for the asset.

The categories are interest, dividends, capital gains, or tax-free, as selected.

If ownership of the asset is divided, the allocation reflects that division.

Data Entries:

Investment Current Rate Pct This year This year Type ofName Value Rtn George Marianne Income

First Union $1,875 0.0% 0% $0.00 $0.00Vanguard Index 500 $12,755 0.0% 0% $0.00 $0.00

Bank of America $25,000 2.0% 0% $0.00 $500.00Nuveen Bond Fund $10,000 4.6% 0% $0.00 $0.00

Municipal Bonds $20,000 2.2% 0% $0.00 $0.00 Tax FreeBank of America $3,292 0.0% 0% $0.00 $0.00

Financial Investment Income For Each Investment:

First UnionValue at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Income during the year, with $0 of cash flow split 0/0 (George/Marianne) -- Dividend income.George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Vanguard Index 500Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Income during the year, with $1,000 of cash flow split 0/0 (George/Marianne) -- Dividend income.George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Bank of AmericaValue at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 25,000 0 0 0 0 0 0 0 0 0

Income during the year, at 2.0% -- Dividend income.George 0 0 0 0 0 0 0 0 0 0

Marianne 500 0 0 0 0 0 0 0 0 0

Nuveen Bond FundValue at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Income during the year, at 4.6% -- Interest income.George 0 0 0 0 0 0 0 0 0 0

4/4/2011

Financial Investment Income (cont.)


Marianne 0 0 0 0 0 0 0 0 0 0

Municipal BondsValue at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Income during the year, at 2.2% -- Tax Free income.George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Bank of AmericaValue at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Income during the year, at 0.0% -- Dividend income.George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Financial Investment Income Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Interest Income

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Dividend IncomeGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 500 0 0 0 0 0 0 0 0 0Capital Gain Income

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Tax Free IncomeGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Equals: Total Investment Income Per YearGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 500 0 0 0 0 0 0 0 0 0

4/4/2011

Financial Investment Income (cont.)


Total Annual Investment Income Graph:

George Marianne

$0

$100

$200

$300

$400

$500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Real Estate Income

Real estate income report for George J Jones or Marianne P Jones.

Real estate income includes income from real estate investments.

Data Entries:

Real Estate Income Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Social Security Income

Social security income report for George J Jones or Marianne P Jones.

Totals in this report are based on the social security benefit entered.

This increases each year by inflation, if it is indicated that benefits should be adjusted for inflation.

If a party retires before regular retirement age, the amount received will be reduced, per formulasspecified by law, from the benefit entered for regular retirement age.

If a party retires after regular retirement age, the amount received will be more than the amount enteredfor regular retirement age, again per formula.

The law specifies that "retirement age" itself varies between 65 and 67, depending on the year and month ofa party's birth.

Data Entries:

George:NO Is George receiving Social Security payments yet?

Regular Best guess retirement age.67 Retirement age used in calculations.

$832 Projected annual benefit if George retires at regular retirement age.NO Does Social Security increase with inflation?

Marianne:NO Is Marianne receiving Social Security payments yet?

Regular Best guess retirement age.67 Retirement age used in calculations.

$650 Projected annual benefit if Marianne retires at regular retirement age.NO Does Social Security increase with inflation?

Social Security Income Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


IRA / 401(k) Payouts

IRA/401(k) payouts report (during the years shown) for George J Jones or Marianne P Jones.

This report describes regular IRA retirement distributions, not liquidating distributions.It covers only the years shown (there may be payouts after these years that are not shown).Liquidating distributions occur when the software automatically distributes from the IRAto cover an income shortfall.

Securities, and IRAs used to cover expenses in excess of income are shown in the reportentitled "Liquidations to Cover Negative Cash Flow."

Totals in this report are calculated as follows:

Start with the current value of the investment.

Calculate self and spouse portions, based on the percent entered.

Subtract any distribution and account fee in 2011.

Increase what is left by the growth rate specified until the age at which distributions are specifiedto begin.

If that is within our 10 year time frame, distributions are shown.

If "minimum distributions" are specified, the minimum allowed by law per year is calculated.

Otherwise, each year the specified amount is distributed. This continues for 10 years, or until the fundis fully distributed.

After each distribution, the remaining balance is increased by the growth rate.

Data Entries:

Vanguard IRA$12,555 Current value of account (dollars).

5.0% Growth rate of account specified (percent).

George:$12,555 Dollar amount allocated to George.

$0 Distribution to George in the current year (dollars).65 Age at which distributions to George should start.

Minimum Desired distribution size for George.

Marianne:$0 Dollar amount allocated to Marianne.

IRA and 401(k) Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Defined Benefit Plan Payouts

Defined benefit plan payouts report for George J Jones or Marianne P Jones.

This amount is calculated as follows:

Both the annual and lump sum values are based on the value of the plan at retirement.

If there is more than one defined benefit plan, these numbers reflect the combined values of allplans.

Data Entries:

There are no distributions from any defined benefit plans for the next 10 years.

Defined Benefit Pension Payout Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Annual Pension Payments

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Lump-Sum Pension PaymentsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Total Pension PaymentsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Child Support Received

Child Support received report for George J Jones or Marianne P Jones.

This amount is the Child Support payment specified, annualized.Child Support increases annually for inflation if so indicated.If modifications in child support occurring at specific times are indicated, those modifications arereflected as well. The first year payment may reflect voluntary or pendente lite payments entered.

Data Entries:

From 1/2011 to 4/2017, child support in the amount of $1,875 per month is specified.

From 5/2017 to 12/2021, child support is $1,500 per month.

These amounts are specified not to increase with inflation.

Child Support is specified to be received by Marianne from George.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Child Support Received

George 0 0 0 0 0 0 0 0 0 0Marianne 22,500 22,500 22,500 22,500 22,500 22,500 19,500 18,000 18,000 18,000

Graph of Child Support Received Per Year:

George Marianne

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Spousal Maintenance Received

Spousal Maintenance received report for George J Jones or Marianne P Jones.

This amount is the Spousal Maintenance payment specified, annualized.Spousal Maintenance increases annually for inflation if so indicated.If modifications in spousal maintenance occurring at specific times are indicated, those modifications arereflected as well. The first year payment may reflect voluntary or pendente lite payments entered.

Data Entries:

From 1/2011 to 12/2015, spousal maintenance in the amount of $1,000 per month is specified.

From 1/2016 to 12/2018, spousal maintenance is $500 per month.


Spousal Maintenance is specified to be received by Marianne from George.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Spousal Maintenance Received

George 0 0 0 0 0 0 0 0 0 0Marianne 12,000 12,000 12,000 12,000 12,000 6,000 6,000 6,000 0 0

Graph of Spousal Maintenance Received Per Year:

George Marianne

$0

$5,000

$10,000

$15,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Income on Accumulated Savings

Income on Accumulated Savings for George J Jones or Marianne P Jones.

This report shows the numbers adding up to current income on Accumulated Savings.

This includes both taxable and tax-free income.

For appreciation on Accumulated Savings, see the Accumulated Savings report.

Data Entries:

Tax Category George MarianneInterest Income (%) 1.00% 1.00%

Dividend Income (%) 1.00% 1.00%Capital Gain Income (%) 1.00% 1.00%

Tax-Free Income (%) 0.00% 0.00%

Income on Accumulated Savings:Interest Income on Accumulated Savings

George 0 199 462 705 973 1,266 1,630 2,052 2,518 3,058Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Dividends on Accumulated SavingsGeorge 0 199 462 705 973 1,266 1,630 2,052 2,518 3,058

Marianne 0 0 0 0 0 0 0 0 0 0Plus: Capital Gain Income on Accumulated Savings

George 0 199 462 705 973 1,266 1,630 2,052 2,518 3,058Marianne 0 0 0 0 0 0 0 0 0 0

Plus: Tax-Free Income on Accumulated SavingsGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Equals: Income on Accumulated Savings

George 0 597 1,386 2,115 2,919 3,798 4,890 6,156 7,554 9,174Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Living Expenses

Living expenses report for George J Jones or Marianne P Jones.

George:

The Detail Method (line by line) of entering living expenses is being used for George.Below are the items of living expenses that have been entered.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Rent

14,400 14,674 14,952 15,236 15,526 15,821 16,122 16,428 16,740 17,058Homeowners' Insurance

800 815 831 846 863 879 896 913 930 948Cable TV

480 489 498 508 518 527 537 548 558 569Internet Access

960 978 997 1,016 1,035 1,055 1,075 1,095 1,116 1,137Painting/Wallpapering

600 611 623 635 647 659 672 684 698 711Household Supplies

840 856 872 889 906 923 940 958 977 995Maid/Cleaning Service

3,900 3,974 4,050 4,127 4,205 4,285 4,366 4,449 4,534 4,620Utilities - Electricity

900 917 935 952 970 989 1,008 1,027 1,046 1,066Utilities - Oil Heat

1,200 1,223 1,246 1,270 1,294 1,318 1,343 1,369 1,395 1,422Car Payments

6,000 6,114 6,230 6,349 6,469 6,592 6,717 6,845 6,975 7,108Car Insurance

14,400 14,674 14,952 15,236 15,526 15,821 16,122 16,428 16,740 17,058Car Gasoline/Oil

1,560 1,590 1,620 1,651 1,682 1,714 1,747 1,780 1,814 1,848Car Maintenance and Repair

900 917 935 952 970 989 1,008 1,027 1,046 1,066Car License/Stickers

600 611 623 635 647 659 672 684 698 711Parking

520 530 540 550 561 571 582 593 605 616Public/Alt. Transportation

520 530 540 550 561 571 582 593 605 616Child Education Lunches

1,200 1,223 1,246 1,270 1,294 1,318 1,343 1,369 1,395 1,422Bank Fees

50 51 52 53 54 55 56 57 58 59Cell Phone

1,080 1,101 1,121 1,143 1,164 1,187 1,209 1,232 1,256 1,279Clothes

4,800 4,891 4,984 5,079 5,175 5,274 5,374 5,476 5,580 5,686Charitable

1,000 1,019 1,038 1,058 1,078 1,099 1,120 1,141 1,163 1,185Church/Synagogue/Mosque etc

1,000 1,019 1,038 1,058 1,078 1,099 1,120 1,141 1,163 1,185Dues/Clubs

1,000 1,019 1,038 1,058 1,078 1,099 1,120 1,141 1,163 1,185

4/4/2011

Living Expenses (cont.)


Entertainment1,040 1,060 1,080 1,100 1,121 1,143 1,164 1,186 1,209 1,232

Food/Groceries2,600 2,649 2,700 2,751 2,803 2,857 2,911 2,966 3,023 3,080

Gifts500 510 519 529 539 549 560 570 581 592

Hair360 367 374 381 388 396 403 411 419 426

Laundry36 37 37 38 39 40 40 41 42 43

Legal and Accounting2,400 2,446 2,492 2,539 2,588 2,637 2,687 2,738 2,790 2,843

Previous Relship Child Support2,400 2,446 2,492 2,539 2,588 2,637 2,687 2,738 2,790 2,843

Restaurants1,560 1,590 1,620 1,651 1,682 1,714 1,747 1,780 1,814 1,848

Subscriptions, Books960 978 997 1,016 1,035 1,055 1,075 1,095 1,116 1,137

Toiletries/Grooming/Drug Store1,040 1,060 1,080 1,100 1,121 1,143 1,164 1,186 1,209 1,232

Vacations2,000 2,038 2,077 2,116 2,156 2,197 2,239 2,282 2,325 2,369

Health Insurance1,440 1,467 1,495 1,524 1,553 1,582 1,612 1,643 1,674 1,706

Dental1,200 1,223 1,246 1,270 1,294 1,318 1,343 1,369 1,395 1,422

Drug & Prescription1,044 1,064 1,084 1,105 1,126 1,147 1,169 1,191 1,214 1,237

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Living Expenses

77,290 78,761 80,254 81,780 83,334 84,919 86,532 88,174 89,856 91,560

Marianne:

The Detail Method (line by line) of entering living expenses is being used for Marianne.Below are the items of living expenses that have been entered.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Union Dues

240 245 249 254 259 264 269 274 279 284Rent

10,800 11,005 11,214 11,427 11,644 11,866 12,091 12,321 12,555 12,794Real Estate Tax

3,000 3,057 3,115 3,174 3,235 3,296 3,359 3,422 3,488 3,554Cable TV

600 611 623 635 647 659 672 684 698 711Lawn Service

1,200 1,223 1,246 1,270 1,294 1,318 1,343 1,369 1,395 1,422Utilities - Electricity

1,200 1,223 1,246 1,270 1,294 1,318 1,343 1,369 1,395 1,422Utilities - Oil Heat

800 815 831 846 863 879 896 913 930 948

4/4/2011

Living Expenses (cont.)


Car Payments4,200 4,280 4,361 4,444 4,528 4,614 4,702 4,791 4,883 4,975

Car Insurance500 510 519 529 539 549 560 570 581 592

Child Care - Day Care5,720 5,829 5,939 6,052 6,167 6,284 6,404 6,526 6,650 6,776

Cell Phone840 856 872 889 906 923 940 958 977 995

Food/Groceries4,160 4,239 4,320 4,402 4,485 4,571 4,657 4,746 4,836 4,928

Medical/Doctor600 611 623 635 647 659 672 684 698 711


33,860 34,504 35,158 35,827 36,508 37,200 37,908 38,627 39,365 40,112

Living Expense Totals:


George 77,290 78,761 80,254 81,780 83,334 84,919 86,532 88,174 89,856 91,560Marianne 33,860 34,504 35,158 35,827 36,508 37,200 37,908 38,627 39,365 40,112

Living Expense Totals Graph:

George Marianne

$0

$20,000

$40,000

$60,000

$80,000

$100,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Life Insurance Premiums

Life insurance premiums report for George J Jones or Marianne P Jones.

The first year's premium is the life insurance premium amount entered.

Premiums continue for the amount of time entered.

Data Entries:

There are no life insurance premiums entered.

4/4/2011


Major Expenses

Major expenses such as schools, camps, etc. for George J Jones or Marianne P Jones.

If so indicated, each expense is increased annually for inflation.

Data Entries:

Present First PctDescription Start Num or Future Year's to Amt to Amt to Pctof Expense Date Yrs Dollars AmountGeorg George Marianne Infl

Tiffany's college 1/1/2017 4 Present $25,000 0% $0 $25,000 5.0Amber's college 1/1/2021 4 Present $25,000 0% $0 $25,000 5.0

Total major expenses for schools, colleges, camps, etc., for George are $0 (0% of the totalspent by both parties).

Total recurring major expenses for schools, colleges and camps, etc., for Marianne are $144,399 (100% of the totalspent by both parties).

Discounting future expenses for inflation (at a rate of 1.9%), the value in today's dollarsof these expenses is $0 (0%) for George and 122,936 (100%) for Marianne.

Projected Expense For Each Item

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Tiffany's college

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 33,502 35,178 36,936 38,783

Total 0 0 0 0 0 0 33,502 35,178 36,936 38,783

Amber's collegeGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0 0 0 0

Major Expense Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Major Expenses

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 33,502 35,178 36,936 38,783

4/4/2011

Major Expenses (cont.)


Major Expense Totals Graph:

George Marianne

$0

$10,000

$20,000

$30,000

$40,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Spousal Maintenance Paid

Spousal Maintenance paid report for George J Jones or Marianne P Jones.

This amount is the Spousal Maintenance payment from this relationship, annualized.Spousal Maintenance is increased annually for inflation if so indicated.If declines in spousal maintenance occurring at specific times are indicated, those declines are reflectedas well. Payments in the first year are pro-rated for the portion of the year remaining and may reflect voluntary orpendente lite payments entered.

Data Entries:

From 1/2011 to 12/2015, spousal maintenance in the amount of $1,000 per month is specified.

From 1/2016 to 12/2018, spousal maintenance is $500 per month.


Spousal Maintenance is specified to be paid by George to Marianne.

Spousal Maintenance Paid Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Spousal Maintenance Paid

George 12,000 12,000 12,000 12,000 12,000 6,000 6,000 6,000 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Spousal Maintenance Paid Graph:

George Marianne

$0

$5,000

$10,000

$15,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Child Support Paid

Child Support paid report for George J Jones or Marianne P Jones.

This amount is the Child Support payment from this relationship, annualized.Child Support is increased annually for inflation if so indicated.If declines in child support occurring at specific times are indicated, those declines are reflected aswell. Payments in the first year are pro-rated for the portion of the year remaining and may reflect voluntary orpendente lite payments entered.

Data Entries:

From 1/2011 to 4/2017, child support in the amount of $1,875 per month is specified.

From 5/2017 to 12/2021, child support is $1,500 per month.


Child Support is specified to be paid by George to Marianne.

Child Support Paid Totals:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Child Support Paid

George 22,500 22,500 22,500 22,500 22,500 22,500 19,500 18,000 18,000 18,000Marianne 0 0 0 0 0 0 0 0 0 0

Child Support Paid Graph:

George Marianne

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Debt Payments

Debt payments report for George J Jones or Marianne P Jones.

Payments are calculated on the debts listed and shown on a "per year" basis.

Data Entries:

Description Debt Pct Amount Interest Monthly Balloonof this Amount to to rate Payment Payoff

debt George George Amount Mo/YrMasterCard Bank Two $3,456 50 1,728 12.000 75.00 [none]

VISA Country Card $7,750 50 3,875 14.000 120.00 [none]

George

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MasterCa 451 450 451 450 451 78 0 0 0 0VISA Cou 721 721 720 721 721 720 721 721 721 721

Total 1,172 1,171 1,171 1,171 1,172 798 721 721 721 721

Marianne

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MasterCa 449 450 449 450 449 77 0 0 0 0VISA Cou 719 719 720 719 719 720 719 719 719 719

Total 1,168 1,169 1,169 1,169 1,168 797 719 719 719 719

Debt Payment Totals:

George 1,172 1,171 1,171 1,171 1,172 798 721 721 721 721Marianne 1,168 1,169 1,169 1,169 1,168 797 719 719 719 719

4/4/2011

Debt Payments (cont.)


Debt Payment Totals Graph:

George Marianne

$0

$500

$1,000

$1,500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Investment Assets

Investments assets report for George J Jones or Marianne P Jones.

The total here is the amount entered as "current market value" of each investment.

The percent each spouse will keep is specified for each investment as well.

The asset values shown in the report reflect increases for growth at the ratespecified for each asset.

If securities are sold to cover negative cash flow (expenses in excess of income) then the value of the securities shown will decrease by the amount sold.

If securities are sold to cover negative cash flow, the software sells them in theorder the securities are listed.

Securities, and IRAs used to cover negative cash flow are shown in the reportentitled "Liquidations to Cover Negative Cash Flow."

Data Entries:George Marianne TotalAmount Pct Amount Pct Amount


First Union -- -- $1,875Bank of America (1) -- $25,000 $25,000Bank of America -- -- $3,292Total Cash-Equivalent $0 0% $25,000 100% $30,167


Total Investments $0 0% $25,000 100% $72,922

Financial Appreciation For Each Investment:

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

First Union (Securities)Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Value after appreciation during the year, appreciating at 0.0% per year.George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Equals: End of Year Value After Appreciation and Liquidation (if any)

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Vanguard Index 500 (Securities)

4/4/2011

Investment Assets (cont.)


Value at start of yearGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Value after appreciation during the year, appreciating at 8.0% per year.

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Equals: End of Year Value After Appreciation and Liquidation (if any)George 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0

Bank of America (Securities)Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 25,000 23,291 20,324 15,481 10,256 4,598 0 0 0 0


Marianne 25,750 23,990 20,934 15,945 10,564 4,736 0 0 0 0Less: Amount liquidated during the year.

George 0 0 0 0 0 0 0 0 0 0Marianne 2,459 3,666 5,453 5,689 5,966 4,736 0 0 0 0

Equals: End of Year Value After Appreciation and Liquidation (if any)George 0 0 0 0 0 0 0 0 0 0

Marianne 23,291 20,324 15,481 10,256 4,598 0 0 0 0 0

Nuveen Bond Fund (Securities)Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Municipal Bonds (Securities)Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Bank of America (Securities)Value at start of year

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0


4/4/2011

Investment Assets (cont.)



George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Totals, End of Year after Growth and Liquidation:Securities

George 0 0 0 0 0 0 0 0 0 0Marianne 23,291 20,324 15,481 10,256 4,598 0 0 0 0 0

Real EstateGeorge 0 0 0 0 0 0 0 0 0 0

Marianne 0 0 0 0 0 0 0 0 0 0Total

George 0 0 0 0 0 0 0 0 0 0Marianne 23,291 20,324 15,481 10,256 4,598 0 0 0 0 0

Total Investment Assets:

George Marianne

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Personal Items

Personal items are listed with the "worth" and allocation for George J Jones or Marianne P Jones.


Personal ItemsJewelry $1,500 $0 $1,500Paintings (2) $700 $0 $700Honda civic -- -- $21,000Toyota Corolla -- -- $24,000Total Personal Items $2,200 100% $0 0% $47,200

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Personal Items

George 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200Marianne 0 0 0 0 0 0 0 0 0 0

Personal Items Graph:

George

4/4/2011


Equity in Real Estate

Report on equity in real estate for George J Jones or Marianne P Jones.

This is the total amount of equity on each home entered.Equity is calculated as: value less current mortgage balances and projected refinancings.

Property Property First Second Equity George MarianneValue Mortgage Mortgage in Prop. Amount Amount

40 Winding Way $450,000 $320,000 $0 $130,000 $40,000 $90,000Vacation Home $100,000 $18,750 $0 $81,250 $81,250 $0

Total Real Estate Equity $550,000 $338,750 $0 $211,250 $121,250 $90,000

The following lines show equity in each property for each spouse projected to future years.Note: Mortgage balances shown are "year end" and may not not exactly match the "current" mortgage numbers.

40 Winding Way

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Property Value

450,000 458,550 467,262 476,140 485,187 494,406 503,799 513,372 523,126 533,065Less: 1st Mortgage Balance

297,301 272,912 246,708 218,554 188,305 155,804 120,884 83,366 43,055 0Less: 2nd Mortgage Balance

0 0 0 0 0 0 0 0 0 0Equals: Equity in property

152,699 185,638 220,554 257,586 296,882 338,602 382,915 430,006 480,071 533,065Amount to George

47,337 57,548 68,372 79,852 92,033 104,967 118,704 133,302 148,822 165,250Amount to Marianne

105,362 128,090 152,182 177,734 204,849 233,635 264,211 296,704 331,249 367,815

Vacation Home

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Property Value

100,000 101,900 103,836 105,809 107,819 109,868 111,955 114,083 116,250 118,459Less: 1st Mortgage Balance

17,328 15,827 14,242 12,570 10,806 8,944 6,979 4,905 2,716 406Less: 2nd Mortgage Balance

0 0 0 0 0 0 0 0 0 0Equals: Equity in property

82,672 86,073 89,594 93,239 97,013 100,924 104,976 109,178 113,534 118,053Amount to George

82,672 86,073 89,594 93,239 97,013 100,924 104,976 109,178 113,534 118,053Amount to Marianne

0 0 0 0 0 0 0 0 0 0

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Real Estate Equity

George 130,009 143,621 157,966 173,091 189,046 205,891 223,680 242,480 262,356 283,303

4/4/2011

Equity in Real Estate (cont.)


Marianne 105,362 128,090 152,182 177,734 204,849 233,635 264,211 296,704 331,249 367,815

Real Estate Equity - All Property

George Marianne

$0

$100,000

$200,000

$300,000

$400,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4/4/2011


Life Insurance Assets

Report on life insurance assets for George J Jones or Marianne P Jones.

If a party has whole/universal/variable life insurance, the cash value is an asset.

The total here reflects the cash value of each policy.

The percents here reflect the percents of value each spouse is keeping.


Life Insurance $0 0% $0 0% $0

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Insurance

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


Business Assets

Businesses report for George J Jones or Marianne P Jones.

The percentages here are the percentages specified that each party will own of the business after thedivorce.

If the business is sold, the proceeds become part of the owners' income in the year of sale.For the year of sale, and afterward, the value of the business is shown in this report as zero.



Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Business Values

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011


IRA / 401(k) Assets

IRA / 401(k) assets report for George J Jones or Marianne P Jones.

If IRA assets are distributed to cover negative cash flow, then the value shown of the IRAswill decline. If a party owns more than one IRA, IRAs are used in the order listed.

The securities and IRAs distributed to cover negative cash flow are detailed in the reportentitled "Liquidations to Cover Negative Cash Flow."



Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

George's share of Vanguard IRA

Starting value:12,555 13,183 13,842 14,534 15,261 16,024 16,825 17,666 18,549 19,476

Plus: Growth for year628 659 692 727 763 801 841 883 927 974

Value after Growth13,183 13,842 14,534 15,261 16,024 16,825 17,666 18,549 19,476 20,450

Year End Value13,183 13,842 14,534 15,261 16,024 16,825 17,666 18,549 19,476 20,450

Total IRAs and 401(k)sGeorge 13,183 13,842 14,534 15,261 16,024 16,825 17,666 18,549 19,476 20,450

Marianne 0 0 0 0 0 0 0 0 0 0

4/4/2011

IRA / 401(k) Assets (cont.)


IRAs and 401(k)s Graph:

George

4/4/2011


Defined Benefit Pension

Defined benefit pension report for George J Jones or Marianne P Jones.

The total value here is the amount shown as the pension value in the Defined Benefit Pension chapter.

However, if it was specified that the calculation should use a value entered directly (such as an actuary'sresult), then the number here is the number entered at that point.

The percentages here are the percentages entered in the Defined Benefit Pension chapter for each spouse.



Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Defined Benefit Pensions

George 0 0 0 0 0 0 0 0 0 0Marianne 46,673 50,852 55,031 59,210 63,389 67,568 71,747 75,926 80,105 84,284

Defined Benefit Pensions Graph:

Marianne

4/4/2011


Notes (Debt) Between Spouses

Report for notes (debt) between George J Jones and Marianne P Jones.

There are two categories of debt between spouses: business debt and debt related to the home.

Business debt between spouses includes the following:

The amount of any buyout note that the selling party will receive.

For sole proprietorships, the amount of receivables that the selling party will receive.

For partnerships and corporations, the amount of any 1-time buyout payment.

For partnerships and corporations, the amount of any buyout note.

For partnerships, the total value of any regular payments.(This is the monthly payment * # months for payout.)

For corporations, the total value of any preferred dividend payments.(This is the annual payment * # of years.)

In the case of partnerships and corporations, there is an option to have payments made by the entity besubtracted from the buyer's income and assets. If this option is selected, then the value of buyout notesand regular payments appear as debt of the buyer as well as an asset of the seller.

Debt related to real estate, between spouses, counts as an asset only if:

There is a mortgage on a property; and

The mortgage is being paid to the other party.

Data Entries:

Mary Kay franchiseSole Proprietorship Business Entity type.

NO Option to deduct payments from buyer selected.


Notes (Debts) btw SpousesMortgage on real estate $0 0% $0 0% $0Notes on businesses $0 0% $0 0% $0Total Notes btw Spouses $0 0% $0 0% $0

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Mortgage notes on Real Estate owed to...

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Notes on Businesses owed to...George 0 0 0 0 0 0 0 0 0 0

4/4/2011

Note (Debt) Between Spouses (cont.)


Marianne 0 0 0 0 0 0 0 0 0 0Total Notes between Spouses

George 0 0 0 0 0 0 0 0 0 0Marianne 0 0 0 0 0 0 0 0 0 0

Family Law Software Report - Divorce Financial Help in ... · Newtown, PA 19323 Phone: 610-333-2222...

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Transcript of Family Law Software Report - Divorce Financial Help in ... · Newtown, PA 19323 Phone: 610-333-2222...