Why is it important that I take a complete financial inventory in prep for divorce?

A fundamental step that must be taken when planning for a divorce is to identify everything of value that the divorcing couple owns or owes.  The court is looking to split the assets and liabilities in a fair and equitable allocation between you and your former spouse.  No matter what your situation, your divorce attorney or the domestic relations court is going to need this financial information.  Filling out a Financial Inventory worksheet will help you and/or your advisors assess your financial condition and will provide a basis for recommendations that best fit your overall divorce financial strategy and allow you to preserve and protect your financial assets as you move through the divorce process.

In some marriages, one spouse is the primary caretaker of the financial obligations for the family.  That person may be in charge of paying the bills, setting up the investment accounts, making investment decisions (stocks, bonds, real estate, mutual funds, etc.), buying and maintaining insurances (health, life, disability, long-term care), managing the credit cards, and filing taxes during the marriage.  We understand that if you have not been involved with these activities that they can be daunting to you and it can cause a considerable amount of stress dealing with these issues for the first time.

We can’t stress enough the importance of gaining an understanding of your current financial picture.  You need to understand the areas that you can control as you move towards your new independent financial situation.