While no two divorce cases are the same, all of them involve the allocation and distribution of marital property. So, to avoid any possible complications throughout the divorce proceedings, it is important that you organize a list of all the debts and assets that you and your spouse own. Of course, this list will also include any assets that you owned before the union, which can make differentiating between the two much easier. However, listing all of these assets and debts is not just for your convenience, but it is a requirement of the judicial process.
Why You Need to List All of the Assets and Debts in Your Divorce
Research shows that 31% of individuals who share finances are deceitful about their money. One of the most important reasons why you need to list all of the assets and liabilities that you and your spouse own is because it is an essential part of the judicial process. If you fail to mention any assets as part of your divorce proceedings or falsify information, then you could face very serious consequences. You could be found in contempt of court or could even face jail time on account of perjury and fraud. In the best case, you would have to pay a fine.
Furthermore, by providing complete information to your Henderson Divorce Lawyer, they can ensure a more equitable distribution of your funds. By being honest about your assets, you can even avoid a situation where your spouse could possibly claim your assets as theirs.
Exceptions for Assets During a Divorce
Assets that are relocated during a divorce are ones that you and your spouse obtained after marriage. So even though you will have to mention assets that you obtained before the marriage, they are not subject to distribution. It is also worth mentioning that gifts that either of the spouses receive during their marriage are not subject to this allocation. The list of exceptions also extends to any inheritance either spouses have received or assets that they acquired from a previous divorce. There are other exceptions as well, and you should read them thoroughly to start budgeting better.
Listing Your Assets
Before you can go to your divorce lawyer for help with the proceedings, it is important that you first compile a list of all your assets. Assets can include investments, businesses, houses, properties, and accounts. If something has cash value and was bought during the marriage, then it needs to be included in the list of assets.
You should also create your list according to categories. Categorizing the list ensures that you avoid adding certain assets to the list, and generally makes finding things a lot easier. You also want to add a small note next to any assets that you include, to answer questions that your spouse or their family lawyer might have.
Your list of assets should include:
These can include any personal, shared, or retirement accounts. Remember, if you bought a joint retirement account during the marriage, that also needs to be distributed. Any credit cards that the couple has will also have to be distributed accordingly.
Your properties will include any land, income properties, and vacation homes. The home that you are currently living in will also be included in the list of properties up for distribution. If you have any properties for rent or purchased land as an investment, they will have to be part of the allocation.
You will have to declare any vehicles that you have bought during the marriage, as they can all be allocated as well. These vehicles can include cars, trailers, boats, and motorcycles. Private jets will also be a part of that list.
If you have made any investments during your marriage, you will have to tell your lawyer so that they can effectively distribute them. These can include bonds, IPs, stocks, annuities, retirement funds, and even life insurance accounts.
High-Value Personal Belongings
These high-value personal belongings can include miscellaneous items in your home, such as jewelry, art, and antiques. It can also include furniture and other household accessories that were bought during the marriage.
It is essential that you are able to add all of your assets to a list before the divorce proceeding begins, as it will ensure that the right assets are being distributed. Not only are they being better distributed, but you can also tell if those assets are from your inheritance, a gift, or something that you actually purchased.
Listing your Debts
Once you have compiled all of your assets into a single list, it’s time to move on to your debts. You want to make sure that you get all of your debts right to ensure effective distribution. Your list of debts can include:
- Student loans
- Credit card debt
- Medical Bills
- Auto loans
- Personal loans
Hopefully, you and your spouse do not have a lot of liabilities, so the list will be short. However, in some cases, you will need to provide more explicit details about your debts and how they were accrued. You need to make sure that your family attorney is in the mix for all of the debts that you are listing. Talking to your divorce attorney will also ensure that you do not end up taking on your spouse’s debt in the process of the divorce.
Getting the help you Need
Going through a divorce can be difficult. Along with having to handle a lot of complicated emotions, you also have to manage a series of complicated tasks like documenting all of the assets and debts that you own. While this can take time and a lot of mental fortitude, you need to power through it to ensure that you do not get anything less than what you deserve.
Finally, you need to get the help of an experienced divorce lawyers to make sure you do not miss anything. By staying in contact with them, you will be able to get updates on your situation, and you can easily go through the divorce proceedings.