This is the fifth installment of “Divorce. What You Need to Think About from a Financial Perspective”, which can be downloaded for FREE from makara-assoc.com.
One of the primary goals of the divorce process is the separation of your “legal agreements” and shared property.
When emotions are involved, it may be difficult to view divorce as a business arrangement. However, that is exactly what it is.
The goal is to make an equitable distribution of marital assets and debts. In order to ensure that this distribution is fair, it is imperative that you understand what is owned and what is owed.
When considering your marital assets, some may be obvious joint assets, such as houses, vehicles and bank accounts.
However, others may be a little less clear. These are often the source of debate in contested divorces. Some of these may include things like:
- Pension plans
- Inheritances
- Belongings that were brought into the marriage
- Artwork or collectables
Assets will be identified during the “discovery phase” of a divorce. This should be handled by your accountant, or a professional with knowledge of the subject. This person can help you gather and review all of the required financial documentation you will need to present (reference the list in Tip #2, “Gather Financial Documents”).
The most common way to receive this information is through interviews and depositions. However, a good professional will conduct an internet search of property records and court documents.
If you are concerned that your spouse is not honestly disclosing income and assets, a lifestyle review may be conducted. Lifestyle reviews of your spouse, is another way to receive valuable information as to income and assets that may be hidden away and unknown to the other spouse.
In a lifestyle review, a professional will review spending habits verses income reported on tax returns. This will help to determine if there are additional income source supporting spending habits.
When it comes to assessing and dividing your finances, you may also want to contact a Certified Public Accountant or other professional to assist you with the financial aspects of divorce.
To learn more about planning for a divorce, click the eBook on the right to download it FREE!
Also, please feel free to contact us online or call (239) 384-9688 in Naples or (239) 768-5008 in Fort Myers if you have further questions.
-Mark
