Divorce is often an overwhelming emotional rollercoaster. These feelings usually intensify when substantial assets enter the picture. Knowing which documents to prepare can ease your anxiety and streamline the process.
Below are five essential documents you’ll need at hand for a high-asset divorce.
#1: Tax returns
Think of tax returns as your financial roadmap. Gathering the last three to five years of personal and business returns helps create a clear view of your marital financial health. Make sure to include all schedules and attachments. Tax returns are crucial if you want a fair distribution of marital assets.
#2: Property deeds and mortgages
Your real estate holdings are among your major financial assets. Collect all deeds for your homes and investments, such as vacation properties or rental units. It’s also best to have recent appraisals for each to ensure fair division.
Also, remember to include information on any mortgages or liens associated with the properties.
#3: Investment and retirement account statements
Retirement investing is another major part of people’s total wealth. Gather statements for:
- Individual retirement accounts
- Brokerage accounts
- 401(k)s and pension plans
- Stock options or mutual funds
These documents will help ensure a fair division of your savings and protect your long-term financial security.
#4: Bank and financial statements
Collect bank statements for your checking and savings accounts. Other documents you should prepare if you have them are:
- Credit card histories
- Active loan documents
- Money market accounts
These records provide a clear view of your cash flow, spending habits and liabilities. Aim to gather statements from the past 12 to 24 months for a comprehensive financial picture.
#5: Business valuations
If you or your spouse own a business, get a professional valuation. This document determines the company’s fair market value, considering factors like revenue, assets and future earning potential. The more accurate the valuation, the more you can ensure a fair division of the business.
Preparing for your high-asset divorce
Gathering these five essential documents lays a solid foundation for high-asset divorce proceedings. However, this list only serves as a starting point. A qualified divorce attorney can help you identify other documents specific to your situation, ensuring a smooth process and protecting your interests throughout the divorce.