Spreadsheeting marital assets and debt is an important part of any divorce matter. In a collaborative divorce, the parties have to divide marital property and debt in a just manner when considering all relevant factors. This is why out of the gates it is important to take an inventory of what is at stake.
For many parties, this can be a cumbersome task that causes them figurative headaches. Trying to determine what marital assets and debts there are, and their value, is not very easy. It can feel like a scavenger hunt where they are going to various institutions, trying to get up-to-date statements and account information.
Locking Down the Financial Information
To get these statements, many may have to create an online login to get the information. They also might have to request paper statements. This can take considerable time and energy. The more assets and debts there are, the longer this can take.
Some parties may pay careful attention to their finances and know what they have. Other parties might not pay careful attention. It might be that their spouse took care of the finances during the marriage. These parties can find this task particularly difficult. However, the hope is that the other spouse should be assisting willingly in the collaborative process.
Helpful to the Collaborative Lawyer and Financial Neutral
Engaging in this task right out of the gate is very helpful to the collaborative lawyers in the case. They then know what is out there in terms of property and debt. If there are question marks, they can then request or retrieve this information in the collaborative process.
Knowing what is out there also helps the financial neutral. The financial neutral can then get to analyzing the financial matters involved in the case. They can also determine whether valuations might be needed.
In the collaborative process, the hope is that the parties can work together in an amicable manner to lock down this financial information. Locking down the financial information is the first step in terms of marital property and debt division. In other words, the parties cannot agree on a just division if they do not know what is out there.
Parties can also isolate what either party may have brought into the marriage. Property that is brought into the marriage is typically deemed separate property unless it has been transmuted or commingled to the extent that the character has changed to marital property.
If you are going through a collaborative matter where there are significant financial assets, Stange Law Firm PC can help. You can contact us at 55-805-0595.
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