Preparing for divorce often requires that people take stock of their lives. Spouses need to evaluate their situation to decide if divorce is necessary or if they can repair their damaged relationship. They also need to look at their personal circumstances and household finances to establish realistic goals for their upcoming divorce proceedings.
Particularly in scenarios where people expect to face conflict with their spouses or have complex marital estates, establishing a thorough inventory of marital assets and debts is an important part of the divorce process. How can spouses create accurate and useful inventories reflecting their financial circumstances?
Copy and review financial records
The first step toward establishing a reasonable inventory of assets and debts is to review household financial records. Bank statements, credit card invoices and ownership documents for assets such as real property can help people identify their biggest assets and most pressing financial obligations.
Those records can also prove important as they evaluate disclosures made by their spouses for signs of intentional omissions or other inaccuracies. Spouses may need to go over records related to when they acquired specific assets, as certain resources might be separate property.
The same could be true for certain financial obligations. Debts assumed prior to marriage and debts taken on for purposes that damage the marital relationship may not ultimately be part of the marital estate but instead separate property.
Perform a physical walkthrough
The marital home, any vacation properties and even storage units may contain resources that people acquired years ago and might not recall without a visual reminder. Taking the time to walk through properties and record video footage while doing so can allow people to then go back slowly over the video to identify various assets.
People may need to pay special attention to locations where they store collections, such as a downstairs room that houses all of their wine. That way, they have a thorough record of the assets they owned before beginning the divorce, regardless of whether their spouse attempts to move and hide certain assets.
Confirm fair market values
High-value resources including businesses, fine art, collectibles, real estate and vehicles can be difficult to assess and value. Spouses may need professional assistance as they seek to determine what those assets are realistically worth. Specialists can potentially help value assets when the fair market value isn’t easy to determine independently.
People preparing to inventory their assets may need assistance throughout that process, and that’s okay. Having proper guidance and insight into property division proceedings can make it easier for people to obtain fair outcomes when they decide to divorce.
