Family Law

Preparing for Divorce: Step 2A - Determine what you own

By Jennifer Rice, Esq.

Here is part of a second post in a series about preparing for divorce. Divorce attorney Michael Sherman of the Alabama Family Law Blog has tips on family finances. I've added my comments in italics.

We are on Step 2 in our series regarding preparing for divorce. Step 2 involves making an accounting of the family finances. This includes determining what you own.

For some, that may be easy. If you have a good handle on the family finances, then you are a step ahead. If not, then it is time to do your homework.

Many of the assets of the marriage will be obvious - the home in which you reside, financial accounts, vehicles, recreational vehicles, etc. Others may not be so obvious - these include things like artwork, bearer bonds, a spouse?s deferred compensation, proceeds from a pending lawsuit, etc.

Then there is the possibility that your spouse is hiding assets (this is more likely if they are the ones initiating the divorce or if divorce has been discussed previously).

See Where's the Money? (Finding the Hidden Assets) and Where's the Money? Part II (Finding the Hidden Assets)

Review all possible assets. Attempt to gather documentation regarding each one including present value, where possible. Especially look for any recent appraisals of real estate.

In Colorado, an asset of a spouse acquired prior to the marriage or by gift or inheritance, is considered only to the extent that its present value exceeds its value at the time of the marriage or at the time of acquisition if acquired after the marriage. So for any separate non-marital property, what is considered marital in Colorado is any appreciation in the separate property.

If your lawyer is charging you hourly, then any of this information that you are able to gather should save you a lot of money. If there are documents you are not able to obtain, your lawyer may have to get them through the discovery process.

Some documents can only be obtained with the authorization of the Party or a Court Order. Someone else?s credit report and an FBI background check can only be obtained with the permission of the individual.

In Colorado, you can also request from the Court an Authorization for Financial Disclosure. The form can be found on the Court's website. If the Court signs the request, you can take the signed Authorization to banks, credit unions, retirement funds, etc. to obtain records.

Full post as published by Colorado Family Law Blog on April 10, 2007 (boomark / email).