How to Inventory for Asset Division in Divorce
Asset Division is typically one of the most complicated conversation couples must have in divorce. The task of laying out and tallying marital assets and debts can be emotionally simplified by looking at it as a document gathering exercise rather than an argument.
Amidst the volatile emotions of divorce, separating finances is a dollars and cents conversation. The paperwork can be seen as a necessary step to assure calm, fact-based discussion. Seen from this view, the tedious tracking down and gathering of bank statements and other documents can be empowering.
There are typically three financial snapshots that divorcing couples need to assemble for their lawyer or divorce-trained financial planner: the value of any premarital assets as of the marriage date, the value of marital assets and debts as of the date of separation, and a recent accounting of the value of same.
Here’s an annotated list of documents I routinely ask my clients to assemble prior to asset and debt negotiations. Remember: establishing value on three key dates requires pulling financial documents from three different dates for each.
- Real property – The marital house and any properties owned by either or both of the spouses. A recent appraisal is best (and required if there is a dispute as to value), but quick estimates can be obtained online or by agreement.
Mortgage – If any of the above properties have mortgages or other liens on them, you will need to produce proof of the amount of debt at date of separation and a more recent statement.
- Motor vehicles – A list of all vehicles (cars or motorcycles) owned by either or both of you – even if your children or others are driving them – with the make, model and year, and principal driver for each. Kelley Blue Book offers a quick, online value that can be printed out.
Liens – As with above, statements reflecting the amount of car loans owed on both dates is needed.
- Stocks, bonds, securities and options – Statements reflecting the value of brokerage accounts, stock options or any other securities.
- Certificates of deposit – Statements of value as of date of separation and present date.
- Checking accounts, cash – Statements of value as of date of separation and present date.
- Savings accounts, money market and savings certificates – Statements of value as of date of separation and present date.
- Contents of safe deposit boxes – Create a list of everything in the box.
- Trusts – If you are a trustee for or are the recipient of a trust fund, a statement showing the value of same as of date of separation and present date will be required.
- Life insurance policies – Term or whole life policies owned by either spouse; a recent declaration page is ideal as long as it indicates death benefits and cash surrender value.
- Annuities – Whether purchased during the marriage or provided by an employer, a statement or letter from the administrator showing the value of said annuities as of date of separation and present date is needed.
- Gifts – Typically, you only need to list gifts of cash or assets in excess of $500.00. This includes savings bonds, real or personal property or other assets.
- Inheritances – It is not uncommon that one or the other spouse or both may have inherited cash, retirement funds, personal or real property from a relative. These must be accounted for, typically with value listed as of date of inheritance and, if relevant, date of separation.
- Patents, copyrights, inventions, royalties – Any intellectual property that has value or may have value in the future.
- Personal property outside the home – By this I do not mean furniture or clothes, but items jointly or individually owned, but located outside the marital house. Examples might be: jet skis or boats, a trailer, tools, etc.
- Business – list all owners, including percentage of ownership, and officer/director positions held by a party with company.
- Employment termination benefits – If one or both spouses have been terminated or laid off, the value of severance pay, worker’s compensation claim/award, disability payments or unemployment benefits must be disclosed.
- Profit sharing plans – Employer designed plans over and above stock options, retirement savings accounts like 401(k) or 403(b) or pensions (for those, see below).
- Pension plans – Statement showing the value of an employer provided pension as of date of separation.
- Retirement plans, Individual Retirement Accounts – Statements showing the value of 401(k), 403(b), IRA, Roth IRA, or other individualized retirement accounts as of date of separation and present date.
- Disability payments – If a spouse is disabled and receiving disability benefits, the income stream must be verified.
- Litigation claims (matured and unmatured) – Pending litigation related to personal injury or other claims that may result in a future payout must be disclosed – even if it is anticipated that a settlement will be received post divorce.
- Military/V.A. benefits – Statements showing the value of military or V.A. pensions or other benefits.
- Education benefits – If your employer pays for your education, it must be disclosed.
- Debts due, including loans, mortgages held – This encompasses ALL debts owed by either or both parties, and can include: credit card debt, mortgages, liens, car loans, education loans, pension or retirement fund loans, tax debt, business debt and personal loans. Statements showing the amount of debt owed at date of separation as well as present balance, including proof of payments made post separation.
- Household furnishings and personalty – Here is where you list furniture, electronics, clothes, lawn and home equipment and any specialty items. You can estimate a total value of same, but I recommend you attach a list showing which party will retain which item, particularly if such items are in dispute.
- Other – Think about anything not listed above that may have value worth considering, such as time shares, purchase options or other such agreements.
Call my office at 215-345-5259 to schedule a free consult; I can help you begin the process of separating assets.
– Elissa C. Goldberg, Esquire
Law Office of Elissa C. Goldberg
107 North Broad Street, Suite 211
Doylestown, PA 18901