When thinking about divorce or entering the divorce process, organizing your financial documents is a smart way to be prepared and help the process move along smoothly. The first step is to compile a marital balance sheet. This document shows the assets and liabilities owed by the couple, whether individually or jointly.
Typical assets include the money in savings and checking accounts; retirement; vehicles and equipment; investments; and principal residences, vacation homes and other property. The balance sheet will also show 401(k) accounts, IRAs, pensions and other retirement savings, as well as marketable securities. In addition, jewelry, artwork, furniture and other personal assets will be listed. If either of the couple (or both) own private business interests, those will be reflected as well.
Examples of marital liabilities include:
- Credit card debt
- Student loans
- Home mortgages
- Lines of credit
- Vehicle loans
- Retirement account loans
Values must be assigned to the assets and liabilities cataloged. The value of bank accounts, retirement accounts and debts can be taken from the latest account statement. But other items, such as real estate, collectibles and private business interests, may require an independent outside appraisal.
If the parties own an interest in a closely held business, selling usually isn’t an option. Instead, a business valuation expert should be used to determine its “fair value.” Any value not attributable to net tangible assets and identifiable intangible assets is considered “goodwill.” The treatment of goodwill in divorce varies from state to state.
It is important to talk to an experienced divorce attorney to help you determine what should and shouldn’t be included in a marital estate. Contact Alan Plevy or Kyung (Kathryn) Dickerson today.
About the Authors
Alan Plevy
Alan Plevy is a recognized force in family law, mediation and litigation, with more than 40 years as one of the most experienced divorce lawyers in Virginia. Mr. Plevy is known for being a tenacious litigator and negotiator who is zealously devoted to his clients. A top legal publication, Virginia Lawyer Weekly, noted Mr. Plevy’s impact on the law when it named two cases he litigated among its Top Five Landmark Family Law Cases in Virginia. Those two cases, which date back to the 1980s, are still regularly cited by attorneys and courts.
Kyung (Kathryn) Dickerson
Kyung (Kathryn) Dickerson is a principal at SmolenPlevy in Vienna, Virginia. She is a graduate of the University of Virginia and George Mason University School of Law, where she served on the Board of Editors for the Journal of International Legal Studies. Ms. Dickerson is also presently General Counsel for the Asian Pacific American Bar Association of Virginia and has served as President of the organization and on its Board of Directors. She has also served on the Board of Directors of the Virginia Women Attorneys Association and served as its President. She has served on numerous committees of the Fairfax Bar Association and as President of its Young Lawyers Section and as Co-Chair of the Revenue Development Committee.
