Before starting the divorce process, taking a thorough inventory of your financial situation is crucial for safeguarding your assets. Understanding what you own, what you owe, and how to protect your interests will help you navigate the legal complexities. Here’s a breakdown of the key accounts and assets you should review.
Joint and Individual Bank Accounts
Start by reviewing both your joint and individual bank accounts. Identify any shared checking, savings, or money market accounts and evaluate the balances. You’ll also want to assess your individual accounts to ensure they remain solely in your name.
- Joint Checking and Savings Accounts
- Individual Checking and Savings Accounts
- Money Market Accounts
Investment Portfolios
Take a detailed look at your investment portfolios. Make an inventory of all stocks, bonds, mutual funds, and any other securities you hold. Whether held jointly or individually, these investments could be subject to division in the divorce.
- Stocks
- Bonds
- Mutual Funds
- ETFs (Exchange-Traded Funds)
- Certificates of Deposit (CDs)
Retirement Accounts
Retirement savings often represent a significant portion of a couple’s wealth. List all relevant accounts, including employer-sponsored plans and individual retirement accounts. Understanding how these accounts are classified (whether they were accrued during the marriage or before) is essential for determining how they might be divided.
- 401(k)s
- IRAs (Traditional and Roth)
- Pensions
- SEP IRAs
- Annuities
Real Estate Holdings
Your real estate holdings can be a complex issue in divorce proceedings. You need to distinguish between separate and community property. Any property acquired before the marriage is typically considered separate, while real estate purchased during the marriage is usually seen as community property, subject to division.
- Primary Residence
- Vacation Homes
- Rental Properties
- Commercial Real Estate
- Land and Lots
Business Interests
If you or your spouse have business interests, they need to be carefully evaluated. This could include various types of businesses where you hold ownership, whether partially or wholly. Depending on how your business was formed and its growth during the marriage, its value might be subject to division.
- Sole Proprietorships
- Partnerships
- LLCs (Limited Liability Companies)
- Corporations (C-Corp, S-Corp)
- Family Businesses
Personal Property
Personal property items, particularly high-value possessions, should not be overlooked. While they may not seem as significant as bank accounts or real estate, they can still represent a substantial portion of your total wealth.
- Vehicles (Cars, Motorcycles, Boats)
- Jewelry (Watches, Rings, Necklaces)
- Art Collections
- Antiques
- High-Value Gifts
Debt Obligations
Divorce is not just about dividing assets—it’s also about dividing debt. Take stock of all outstanding debt obligations, whether they’re jointly held or individually owned. Knowing what’s owed will help you avoid unexpected financial responsibilities later.
- Credit Card Balances
- Mortgages
- Car Loans
- Personal Loans
- Business Loans
By reviewing these key accounts and assets before initiating the divorce process, you can ensure that your financial interests are properly protected. Each of these categories has the potential to impact the outcome of your divorce, so taking the time to organize this information in advance will serve you well in the negotiations ahead.
