While preparing for divorce, gathering information about family finances is a critical step. Frequently, people focus so much on financial records, such as income tax returns and credit card statements, that they fail to properly address smaller assets.
Creating a thorough inventory or catalog of assets requires patience and appropriate documentation. A spouse might walk through the house recording video footage and then create a written list based on all of the assets captured in the video. Evidence of the extent of personal property can play a critical role in the asset distribution process in a high-asset divorce.
Personal property could be worth thousands
The personal property acquired by either spouse during the marriage could affect the final property division terms. For example, one spouse may have a much more valuable wardrobe than the other. They may have designer, tailored suits or valuable jewelry acquired during the marriage.
Home furnishings, equipment for hobbies and other resources purchased during the marriage can represent tens of thousands of dollars in marital income diverted for personal purchases. The value of those assets can affect the distribution of other property and marital debts.
Creating an accurate inventory of the totality of property acquired during the marriage makes it easier to then estimate what those assets are worth and reach a fair settlement regarding the distribution of marital property. The larger and more valuable the marital estate becomes, the more critical it may be to pay attention to details to ensure a reasonable settlement.
Cataloging household resources and personal property can be an important component of preparing for a high-asset divorce. Spouses who accurately identify marital property are in a strong position to negotiate for an appropriate property settlement.