Is tracking assets necessary when divorcing?

On Behalf of | Sep 9, 2021 | Divorce

A divorce settlement involves both spouses negotiating on several financial matters. Things could go wrong in a North Carolina family courtroom if one or both parties did not perform a full accounting of all assets. Mistakes made from poor bookkeeping or rushing to finish the divorce may cause problems when additional assets come to light at a later point in settlement negotiations. A deliberate approach to logging all assets may help bring the proceedings to a faster and less stressful conclusion.

Itemizing all assets

Assets could include all financial accounts, both joint and individual ones. Checking, savings, money market, and brokerage accounts might be the ones that come to mind first. However, additional assets such as bonds and precious metals could be in a safety deposit box. Both parties should perform an audit of sorts to determine how many financial accounts exist.

Numerous other assets may have value. Cars, boats, and, of course, real estate properties are worth something. The belongings in a storage unit might include some valuables worth examining, too. A complete accounting of all assets might be worth the time investment.

Figuring out the worth

Knowing what the assets are worth could help spouses negotiate a settlement faster. A professional assessment may give a better idea about the family home’s value. For example, the artwork inside the house might require an appraisal, and so might other assets.

Performing a full audit of assets may reduce the chances that one party attempts to hide things. Attempts to hide assets from the divorce court could get a spouse in significant trouble, but some individuals still try.

It is also beneficial to get a complete picture of any debts and obligations owed when reviewing assets. Settling debts could become an essential part of the settlement process and might even leave one spouse free from obligations after signing the divorce papers. Only after all a couple’s assets and liabilities are accounted for can the settlement be finalized.

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