The Joy of an Ex - Financial Documents and Information Needed

Copyright (c) 2011 Jackie Ramler

What You Need, In General Terms

In order to negotiate a financial settlement with your spouse, it is important to have an inventory of your assets and liabilities as of three dates: marriage, separation and today. Assets are all the things of value that you own or are entitled to, like pensions. Liabilities are what you owe, like mortgages, credit card balances, other outstanding bills and loans. And, if child support or alimony is an issue, it is also important to have information on each spouse's income and living expenses.

Why You Need All That Information

The basic premise is that what was yours before marriage, both assets and liabilities including credits towards a pension, is not split with a spouse. The matrimonial home is an exception. The assets and liabilities either spouse acquired during the marriage are generally split equally. Assets and liabilities legally registered in only one spouse's name are generally valued on the date of separation, so any gains or losses after that are not split. Assets or debts held in joint name are valued as of the settlement date. Inheritances are generally excluded if the inherited assets have been kept separate.

Child support is affected by custody arrangements, income, and significant unusual expenses such as orthodontics or tuition. Alimony is usually based on the disparity between the spouses' incomes, each spouse's cost of living and several non-financial issues such as length of marriage and employability. Data on income and living expenses therefore plays a big role in the determination of child support and alimony.

Gathering the Information

Before Separation - Although each spouse is responsible for fully disclosing his or her assets and liabilities, many spouses, intentionally or otherwise, fail to disclose all assets. Therefore it is wise to gather all the information you can on the financial situation of both you and your spouse. Gather the information before separation, if possible, since access to information like bank or investment statements may be restricted by the time the physical separation occurs. If you suspect assets may be being hidden from you, go through any financial files and records that you can find to look for statements, deeds, expenditures etc. that have been kept from you. If you have not yet separated, you are probably still in a good position to gather or make copies of financial records and take photographs of valuable possessions.

At Time of Separation - If separation has already occurred, gather the most recent financial documents on hand and make sure you keep a file of all bills and statements of assets and liabilities which are received after, especially right after, the separation. Later, getting past bank, utility, investment and credit card statements may be possible, but you may be charged a fee for them.

Make a list of any of your spouse's assets of which you don't have paper proof before you forget them. Also, make a list of any valuable household or personal assets, and who physically has them, while they are still fresh in your memory. On an Ongoing Basis Until a Separation Agreement is Reached - Keep track of your spending so you will be able to figure out later how much it costs you to live and how much you are spending on your children. Also, if you do any major repairs or improvements to the matrimonial home, like replacing a roof, keep track of what you spent. When family assets are split, you may get credit for what you spent beyond day-to-day costs to maintain or improve the value of the home. Keep track of, and proof of, any payments you make on debts that existed at the time of the marriage. When the split of the assets is done, you may get credit for the debt you cleared.


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