A plan for the termination of the financial partnership of the marriage is crucial if you are thinking of divorce. All financial assets and liabilities that have been acquired during the years of marriage will need to be divided. If children play a role, the support that will be paid to the custodial parent in the future should be taken into account.
The time put into organizing this will be worth it in the long run. The following are a few steps to consider:
- Prepare an inventory of your financial situation that will help you in two ways:
1. It will aid in determining how debts accumulated during the marriage will be paid off. (It is best to try and get all the joint debt (credit card debt) paid off before the divorce. To come to an agreement as to the method for paying them off, it is smart to make a list of the debts. )
2. It will give you an introductory look at the information needed to divide the property.
- Prepare a list of all assets, whether joint or separate, that includes:
1. Your residence(s)
2. The value of any brokerage accounts
3. Your valuable antiques, jewelry, luxury items, collections, and furnishings
4. The current balance in all bank accounts
5. Your autos
6. The value of investments, including any IRAs
- Locate copies of the last two or three years' tax returns. These will be beneficial later.
- Know the exact quantity of salary and miscellaneous income brought home by your spouse and you.
- Obtain all papers regarding insurance, life, health, pension, and other retirement benefits.
- Make a list of debts that are owed both separately and jointly, including mortgage, credit card debt, auto loans and other liabilities.
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Source: Thomson Reuters