If you decide to divorce, it's natural to turn your immediate attention to your finances. More specifically, you may have concerns about property and debt division.
Since this is likely to be a sticking point during the divorce process, it's critical to maintain a high level of organization at all times. This is where a property division checklist can help.
With the help of a checklist, you'll better understand the following:
- Marital and separate property
- The value of every asset
- If your soon-to-be ex-spouse is attempting to hide assets from the court
No two people will create an identical property division checklist, but there are four categories everyone should consider using:
- Real estate: This typically includes the family home, second home, commercial real estate, undeveloped land and rental properties.
- Personal property: This category is full of assets that you typically keep at home, such as collectibles, antiques, electronics, motor vehicles, artwork, china, jewelry and clothing.
- Financial assets: This commonly includes checking and savings accounts, retirement accounts, educational accounts, pensions, IRAs, 401(k) plans, stocks and bonds, certificates of deposit, annuities and life insurance policy cash values.
- Business assets: If you and/or your spouse are a business owner, business assets may come into play during divorce. For example, if you own commercial real estate, it may be part of the property division process.
What about debts?
Just the same as a property division checklist, you should also make note of all debts and liabilities.
Some of the most common types of joint debt include:
- Credit card accounts
- Car loans
- Personal loans
Don't focus so much attention on property division that you overlook the many types of debt that you share with the other individual.
A property and debt division checklist will help keep you on the right track before, during and after your divorce.
Without this, there's a greater chance of making a mistake or overlooking an asset that should be subject to division.
When you combine a property division checklist with an understanding of your legal rights, you can put yourself in the best position possible.
Visit our website and read our blog for more information on property division, debt division and other family law-related subject matter in California.