One of the most contentious aspects of many divorces is the property division process, partly because it’s unlikely that both parties will agree to the same allocation of assets and debts. Financial records can help during this process because they show what property exists.
If you’re going through a divorce, you should start thinking about the property division process now. Before sitting down to work through the property division process, you have to ensure that you have a complete picture of the finances.
What documents are important?
Bank, retirement, investment and credit card statements are a start. You should also have copies of all loan documents, including mortgages and motor vehicle loans. Having copies of titles, deeds and other ownership documents for all assets is critical. Payroll documentation is also important, especially if it includes things like stock options or bonuses.
Ideally, you and your ex will both have access to the most recent copies of these documents. Together, all of these documents provide information about what’s part of the property division and whose name each asset or debt is in.
Why does documentation matter?
Documentation can clear up a lot of misunderstandings about assets and debts. For example, paperwork can make it clear if the property was owned by one party prior to the marriage.
Accurate documentation is also important because it’s the basis of the property division process. Neither party can make informed decisions if they don’t have all the information about the situation.
Working through a divorce can be complicated, so it’s usually best to have someone on your side who can assist. This is especially true as you begin working through the property division matter that can impact your finances.