Did You Know...

Family Law Software can calculate child support guideline amounts in 21 states.

Search all help content:

Back to all FAQ's

Question:

I want to show investments appreciating, but not show any current income?

Answer:

On the Financial tab Cash & Investments screen, you can specify current income separately from appreciation.

Current income:

You specify current income –- dollars or percent, and tax category –- as shown below:


Current income will be taxed currently, based on the tax category you specify.

If you enter a dollar amount of current cash flow from the assets, the software converts that to a percentage and uses the percentage in future years.

Typically, for bonds, you would enter a significant component of current income.

Appreciation:

You specify appreciation as shown below:

.
Appreciation is not taxed currently but appears on the Net Worth Spreadsheet reports showing an increase in the value of the asset.

For stocks, you typically enter a much smaller component of current income and specify that most of the return comes in the form of appreciation.

If you want to show investments appreciating but not show any current income, then enter zero in the current income column (or leave it blank), and enter an amount in the Appreciation column.

Allocation:

In order for income or appreciation to appear, you must specify how the asset is allocated between the parties.

You can do this where you enter the asset, and also on the Marital Property Division worksheet.

In the image above, this is labeled as "Pct of Marital Equity kept by George."

The income and appreciation will be divided proportionately to the allocation of the asset.

If there is no allocation, then there will not be any income or appreciation to either party from the investment.