In order to successfully negotiate a fair alimony or child support settlement, it is important to have important financial documents in your possession. These documents include things like your mortgage agreement, business tax returns, and monthly expenses. Verification of income can be done through various different resources. Having copies of your important financial documents will give you insight into your spouse’s financial situation and make brokering a fair settlement much more effective.
There are several important financial documents that are relevant to the division of assets and liabilities in a divorce case. Among them are: credit card statements, bank accounts, income tax returns, inventory lists, real estate records, insurance policies, utility bills, and home equity loans. All of these items are used to divide the assets and liabilities of a couple during a divorce.
How do we know what are important financial documents? There are several ways to determine the relevancy of any particular document. The first thing to look at in your divorce process is whether or not there are any genuine financial issues to take up in the negotiations. For example, if you want to separate your debts, and your ex-spouse has no mortgage, or no automobiles, and has only a few pieces of real estate, and maybe no retirement savings, how can you ever know that you have a valid case of financial mismanagement? On the other hand, if you think your spouse may be cheating on you with someone else, how can you prove that? Without access to important financial documents, you can never know.
In a standard divorce situation, there are two basic parties in a divorce: the spouse filing the divorce, and their spouse (called the respondent). The spouse filing the divorce will need to prove that they have a reasonable degree of financial responsibility to their spouse and their dependent children, which usually mean that they have a monthly income. They will need to divide their marital debts into an account that is controlled by them, and they will need to divide their debt responsibility equally. If neither party can prove that they have a reasonable level of income or debt responsibility, the court will usually appoint an alternate person to act as the respondent, who is simply the person who took out the loan(s) or the credit card(s) while the marriage was legally dissolved.
Now, the question becomes, how do you go about dividing marital assets during a divorce settlement? The spouse filing for divorce must make sure that all of their property and marital assets are put under control before the divorce settlement. This involves figuring out how much of each asset they have, and how many are actually their fault, and how much of the property and marital assets is “inalienable”, which means it cannot be seized by the creditor. Again, this will depend on each individual situation, and there are several different resources that can be used to help a spouse with these questions. They include, courts, lawyers, financial planners, property appraisals, and more.
Once the property and money are divided, the process of getting divorced is over. There are actually a few other steps to be taken after getting divorced. Most importantly, once the assets are divided, there are several post-divorce proceedings that will need to be taken care of. One of the main post-divorce items is getting a custody order. Courts often require that both parties submit their financial information and proof of the division of their assets to the court, in order to determine what should be in custody.
Another common proceeding after getting divorced is dividing up the marital property. This involves figuring out who retains that asset, if any, and who should get what. Typically, the court will divide the marital property equally, with each party receiving one third of the value. However, there can be a bit of a gray area when it comes to dividing up real property like the house, since it was obtained during the marriage. The courts will take into consideration the length of time you were married to determine what percentage will be allotted to each party, as well as the financial details of the property.
Another important detail to be aware of is alimony. Alimony is often a highly contested subject, especially in the case of the husband. If the wife has lost her job or is unable to make the requisite payments to cover the husband’s living expenses, alimony can be awarded to the Husband. It is highly recommended that you hire a lawyer to represent you on the legal side, prior to going ahead and obtaining your divorce documents.