Divorce Assets List: An Overview

Dividing assets during a divorce can be a complicated process. Spouses must determine which assets are considered separate property, which is marital or community property that must be divided, and the value of all marital assets.

Having a comprehensive divorce asset list is crucial for navigating this complex financial split.

What is Separate Property

Separate property refers to assets owned by one spouse prior to the marriage, as well as some assets received individually during the marriage.

Separate property is not subject to division in divorce except under certain circumstances.

Typical separate property includes:

• Assets owned by either spouse prior to marriage
• Inheritances received by either spouse
• Gifts given to one spouse during the marriage
• Compensation for personal injury to one spouse during marriage
• Property designated as individual property in a prenuptial agreement

Some key considerations for separate property:

• The asset must have been acquired before marriage or the inheritance/gift during marriage must be traceable.
• Appreciation in value of separate property may be considered marital property.
• Separate property may lose its status if it becomes commingled with marital assets.

Marital (Community) Property

Marital or community property refers to most assets acquired by either spouse during the marriage.

This property is eligible for equitable distribution upon divorce.

Common marital assets include:

• Income earned by either spouse during marriage
• Assets purchased with marital income
• Retirement accounts like 401(k)s and pensions
• Appreciation of premarital assets during the marriage
• Primary home if purchased during marriage
• Vehicles purchased during marriage
• Bank accounts opened during marriage

Additional considerations for marital property:

• Gifts and inheritances are generally excluded even if acquired during marriage.
• In community property states, spouses have equal ownership rights.
• Non-community property states divide marital property equitably, not necessarily equally.

Valuing Assets

A key component of the divorce asset list in a divorce process is determining accurate valuations of all marital property to be divided.

Some tips for valuation include:

Financial Accounts – Use current account statements to determine values for bank accounts, investment accounts, retirement accounts, and pensions.

Real Estate – Hire professional appraisers to value real property including the marital home, investment properties, and land/vacation properties. Get appraisals done as close to the divorce date as possible.

Business Interests – Valuing businesses can be complex. Business valuations often require hiring a professional CPA or business valuation expert. Recent tax returns can help provide estimates.

Personal Property – Catalog all household items, collectibles, jewelry, and vehicles. The research estimated values online or get professional appraisals.

Debts – List mortgage loans, credit cards, taxes owed, and other debts. Include current balances owed.

Accurate asset valuations help ensure the property division is equitable. Keep detailed records throughout the divorce process.

Marital Property: What to Know

Marital property, also known as community property in some states, refers to most assets and debts acquired during the marriage by either spouse. How marital property is defined and divided in divorce depends on state law.

Some key principles regarding marital property:

• Income earned by either spouse during marriage is generally marital property. The exception is separate property agreements.
• Assets purchased using marital income are typically deemed joint property. This includes real estate, vehicles, investments, etc.
• Appreciation in the value of the separate property during marriage may be considered joint property.
• Gifts and inheritances are usually excluded as individual property, even if received during marriage.
• Personal injury settlements are generally separate property, but medical expenses may be marital.
• Property acquired while living separately before divorce is usually still marital property.
• Debt incurred during a marriage is typically viewed as a shared liability.
• Business interests started during marriage often require professional valuation.

Your divorce asset list should focus heavily on identifying and valuing all marital property accumulated during the marriage. Understand how your state classifies marital assets to ensure your list is thorough and accurate. Discuss all marital property with your divorce attorney.

Common Marital Assets to Divide

Some of the most common marital assets that must be divided in a divorce include:

Marital Home – For most couples, the marital home is the most substantial asset. Determine if it was acquired before or during marriage, mortgage balances, and current market value. In community property states, equity is usually split 50/50.

Bank Accounts – All accounts opened during marriage are joint property regardless of whose name is listed. Check current balances.

Investments – Stocks, bonds, and mutual funds purchased during marriage should be divided equitably. Value investment portfolios as close to the divorce date as possible.

Retirement Funds – Pensions, 401(k)s, and IRAs are common marital assets. A QDRO can divide pensions; other accounts are split using QDRO-like orders.

Vehicles – Cars, trucks, and motorcycles bought during marriage are joint assets. Research resale values.

Furniture and Household Items – Compile a detailed list of all major furniture, appliances, electronics, jewelry, collectibles, etc. acquired during the marriage. Estimate fair resale value.

Debt – Mortgages, credit card balances, loans, and debts are shared marital liabilities and impact asset division.

Business Interests – Privately owned companies started during marriage can be one of the most complex assets to value and divide.

Get professional valuations of all substantial marital assets. It’s critical for establishing an equitable distribution.

Developing the Divorce Asset List

Creating a detailed divorce asset list takes time and effort but is worthwhile. Approach it methodically:

• List all separate property first – assets owned before marriage or received by gift/inheritance during. Keep records proving separate status.
• Include all marital property – make a comprehensive list of assets acquired during the marriage by either spouse. Real estate, vehicles, financial accounts, household items, collectibles, etc.
• Research valuations – determine current fair market values for every item. Use account statements, professional appraisals, online pricing guides and other resources.
• List all debts – including mortgages, loans, credit cards, taxes owed, and other shared marital debts. Note balances owed.
• Review and update – revisit your divorce asset list frequently leading up to separation. Update balances, account values, and appraisals.
• Disclose fully – share the full detailed list with your divorce attorney and spouse for discussion of equitable distribution.

Getting your divorce asset list right takes time upfront but avoids major problems down the road. Keep your list organized, complete, and updated throughout the process.

How Assets Are Divided

State laws determine how marital property is divided in divorce. In community property states, assets are often split 50/50.

In equitable distribution states, assets are divided fairly but not always equally.

Some factors courts consider for equitable distribution include:

• Contributions made by each spouse – financial and non-financial – to acquiring assets.
• Future financial needs and earning ability of each spouse.
• Any wasting of assets or damaging of credit by a spouse.
• Tax consequences and legal ramifications of dividing certain assets.
• Custody arrangements for any minor children.
• Any other relevant factors under state law.

The court has final authority but aims to divide all marital property equitably. Negotiating a settlement means you control the division.

Non-monetary contributions are considered in most states.

For example, a spouse may receive a larger share for providing childcare and homemaking during the marriage.

Get legal guidance to help divide assets based on state laws and your specific situation.

Modifying Your Divorce Asset List

Your divorce asset list will likely change frequently during separation and divorce. It’s important to track these changes and modify the list accordingly.

Reasons you may need to adjust your divorce asset list:

• Changed valuations – get updated appraisals of real estate, business interests, or other property before the divorce is final.
• Accounts fluctuate – account balances change. Track shifts in investment and bank accounts up through the divorce date.
• New assets or debts – major purchases or debts taken on during separation must be disclosed.
• Sold assets – any property sold prior to divorce would be removed and value added to other equitably divided assets.
• Incorrect or missing information – may require additions or adjustments to the list.
• Settlement negotiations – asset division is often an ongoing discussion. Keep current.

By maintaining a frequently updated divorce asset list, you can better navigate the complex finances of divorce and reach a satisfactory settlement.

Inform your attorney any time major changes occur.

Using Your Divorce Asset List Efficiently

To make the most of your divorce asset list:

• Use a spreadsheet format that allows sorting and tracking of values.
• Keep digital and hard copies – store them in multiple safe locations.
• Note details like purchase dates, account numbers, and legal descriptions.
• Keep orderly records proving separate property status.
• Work with your attorney to determine division goals.
• Be open to negotiation – flexible division can settle faster.
• Consider tax implications of dividing and selling assets.
• Update values frequently, and keep property appraisals current.

Your divorce asset list serves as the key reference for dividing marital property equitably and avoiding future disputes.

Keep it meticulous and current for a less stressful divorce.

Finding Additional Guidance

Dividing assets in divorce can be overwhelming. Fortunately, you don’t have to navigate it alone. Some additional resources that may help:

• Hire an experienced divorce attorney – legal expertise is strongly recommended for asset division.
• Seek a financial advisor – for valuations, tax planning, and other money-related issues.
• Contact a certified divorce financial analyst – helps with the financial split, retirement funds, etc.
• Collaborate with a real estate agent – if selling your home or other properties.
• Use a mediator – helps facilitate agreements and settlement.
• Check state laws and court resources – statutes affect how property is divided.
• Talk to trusted friends or family – emotional support during the process.

With the help of professionals, your divorce asset list will be your guide to making the best of a difficult situation.

Stay focused, know your options, and keep your eye on your future goals. You’ve got this!

FAQs

What if my spouse tries to hide assets from the divorce asset list?

Unfortunately, some spouses do attempt to conceal assets during divorce.

This is grounds for challenging the division. You and your attorney have the right to request full financial disclosures and accountings to ensure all marital property is identified.

The court can compel disclosure if needed.

Should I change account passwords or close joint accounts during separation?

In general, it’s advisable not to make major changes to joint marital accounts until the divorce is finalized. Closing accounts or withdrawing large sums can backfire financially and legally.

Speak to your attorney before altering jointly owned assets.

What if my spouse wasted marital assets or damaged our credit?

Courts will take into account any wasting of assets or damaging of credit by someone during the marriage.

You can provide records showing misconduct and request a larger property division to compensate.

Do we each need our own divorce asset list?

Yes, you should each develop your own comprehensive divorce asset list with the help of your attorneys. Compare lists once complete. Ideally, this is the starting point for negotiating a fair division.

What if we can’t agree on the value of certain assets?

If you and your spouse dispute the valuations on your divorce asset lists, the court may order professional appraisals.

A judge or arbitrator will have the final say on the value of assets if you remain in disagreement.

How often should I update my divorce asset list?

Aim to update your asset list at least monthly as you near final separation. Any major financial changes should be incorporated right away to keep your list current.

Update final account values just before the divorce is finalized

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