One of the most contentious subjects that usually arises during a divorce is the division of marital property. Spouses can come up with their own rules for property division through an enforceable prenuptial agreement or a written settlement agreement. Where there is no prenup or written settlement agreement, the court will divide marital property based on the state’s statutory guidelines.
Financial disclosure is an important component of the marital property division process as it can help a divorcing couple avoid penalties and a protracted divorce procedure. To help ensure transparency during property division, here are important documents you need to provide during the financial disclosure process.
Property valuation document
This document provides a valuation of all the properties you own or are a shareholder in. It is prepared by a certified appraiser within the period of the last six months prior to divorce. If the valuation was done earlier, or if the court or the other party has issues with this document, the court may order a re-valuation through a court-appointed appraiser.
Bank accounts, debts and investments
You will also be required to compile your bank account statements, personal, joint or any other account created for purposes of processing your benefits. Additionally, you will be required to provide a list of all the investments, stocks and funds in your name. You should include a list of your debts in these documents. If you own a business, either as a shareholder or sole proprietor, you will be required to provide evidence of it.
Finally, you will be required to provide a report from your employer indicating your income. If you are self-employed, you will be required to provide copies of your tax returns for the past two years. If you have any other sources of income, you will be required to list them.
Divorce consists of multiple stages that require both parties to produce legal documentation. Financial settlement is one of the most important components as it is used for making rulings on items such as alimony and child support. This is why you need to be as accurate as possible when preparing your financial disclosure documents.