Waiting on the Economy to Improve for Divorce May Not Be the Best Strategy
Lately, I’ve had some people say to me that they are waiting to move forward with their divorce because of the economic situation. Interest rates are still high, inflation is causing monthly expenses to rise and there is much uncertainty on economic impacts from the impending election.
During this time of contemplation, my suggestion is that you use this time to gather all the financial data you will need to present your case to your spouse. This requires gathering multiple documents. I have put together a list below, but your situation may not warrant all of these documents.
If you find yourself not knowing what some of these documents are, you are not alone. Sometimes it requires going to your attorney, CPA, or your spouse to find these documents. Before you run to your spouse, you may want to find out from a professional if it makes sense at this point in your situation to let them know you were gathering documents. This may be something you need to do privately. If your situation is not amicable, you may need to look in your home office or other places you think your spouse may have these documents. You need to be your own detective! Many people find themselves in this situation and we can help.
The longer you wait, the further you are from realizing your new career and new life. This could be time you use not only gathering documents, but also developing a business plan and/or personal financial plan to move forward. Would you take a trip without your GPS or a map? Why would you embark on the rest of your life’s journey without this as well? A business plan and/or financial plan are your roadmap to your financial future. It is not the role of your CPA or attorney in divorce to help you understand this.
Whether or not you know what these documents are, they are still what is needed by the professionals helping you through this divorce. It may feel easier to put your head in the sand and not think about it right now, but the longer you procrastinate, the harder and more costly it could be, as this is the nature of valuing assets in divorce. Don’t wait! Use this time wisely. Give us a call today for a free consultation.
DOCUMENTS YOU NEED TO GATHER FOR DIVORCE
INCOME AND TAX RETURNS
Payroll stubs
Tax returns (last 3 Years)
W-2’s and 1099s (last 3 Years)
Partnership or Corporate tax returns (last 3 years), if business owner
Amended returns (last 3 Years)
CHECKING AND SAVINGS ACCOUNTS
Checking account Statements
Savings account Statements
Business account Statements
INVESTMENTS AND OTHER ASSETS
HSA account Statements
Employer retirement plans (Pensions, Profit sharing, 401(k), 403(b), 457, & Non- Qualified Deferred Compensation Plans) Statements
Summary Plan Description
Pensions Statements
Benefit estimates (from employer website; monthly benefit estimates)
Benefits Booklet from employer
IRA, Roth IRA, Simple IRA, SEP IRA Statements
Social Security Statements – most recent – available at www.ssa.gov
Stock Options or Grants Statements
Life Insurance Policies (Work and Personal) Statement
Investment Statements (mutual funds, stocks and bonds, brokerage investment accounts, annuities, money markets, CDs etc.)
Real Estate information (Personal & vacation/investment property)
Children’s Bank, Savings, College savings, Insurance and Investment Statements
DEBTS
Mortgage Statements (on all homes & rental properties)
Second Mortgage or HELOC Statements
Credit card Statements
Student loan Statements
Personal loan Statements
Car loan Statements
KBB or Carfax valuation by VIN# for your car if it is owned – not leased
Business loan Statements
Credit Report for each party
The Financial Knot® is another business name for Independent Advisor Alliance, LLC. All financial planning advice is offered through Independent Advisor Alliance, LLC, a registered investment advisor.
