Law

Divorce-related financial information you need to gather

People are seldom ready for divorce, which rarely occurs overnight. Even if you take the social and emotional effects of divorce into account, you might not give the financial consequences any thought. Although it may seem trivial, maintaining your financial stability is equally as crucial as sifting through your emotional debris. Because of this, specialists advise that you consider your finances before divorcing your spouse.

Tax returns

Make sure you obtain all of the W-2s, 1099s, and K-1s, as well as all the paperwork that accompanied them used to prepare your tax returns for the past three years. 

Ensure that you make copies of all of these documents, whether they are digital or printed, and give them to your contested divorce lawyer Huntsville.

Access to your returns isn’t available? It’s not a problem. You can obtain a copy via Form 4508 from the IRS, or you can speak with your accountant about it.

Analyses of income and expenses

Analyzing your income and expenses enables you to compare your monthly and annual costs to your income. Make no assumptions or educated guesses. It is suggested that you check three years’ worth of bank and credit card statements to ensure you didn’t overspend. 

Some expenses might become less important after your divorce, while others might rise or be added. It is crucial that you estimate future expenditures as well as past expenditures.

An overview of net worth

Your long-term liabilities and all of your assets are listed on your net worth statement. Obtain statements for your liquid assets, including retirement accounts, annuities, long-term health insurance, real estate holdings, and checking, savings, and investment accounts.

Additionally, you should acquire statements for all outstanding debt, such as credit cards, auto loans, student loans, and mortgage bills. You and your ex might be responsible for dividing joint debts during divorce proceedings. However, in most cases, whatever debt you had prior to the marriage will remain your obligation after the divorce.

Credit Report

Running a credit report is one of the finest ways to ensure you’ve considered all of your debt obligations. Verify the accuracy of the data and make any necessary corrections while reading your credit history.

A reporting error could negatively affect your credit score (which might then impact your ability to get a loan or get low-interest rates.) In addition, you may use the report to determine which joint accounts need to be closed.

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