For those contemplating divorce, concerns about finances often hold them back from filing. They worry about hidden assets and diverted income. They expect their spouses to try to deny them a fair share of the marital estate or diminish how much support they must provide.
The months leading up to a divorce filing offer an opportunity to prepare. That process often requires collecting key financial records. All three of the documents below can help to better ensure a fair outcome during high-asset divorce proceedings.
1. Credit card statements
Monthly statements outlining the charges made help establish a marital standard of living. They can also be crucial for a forensic analysis of marital finances. Especially if one spouse suspects dissipation, reviewing spending history is an important step to take.
2. Bank records
The deposits each spouse made into checking and savings accounts, as well as withdrawal habits, can influence property division and support decisions. Professionals with access to bank records can track income and look for habits that may indicate attempts to hide or dissipate marital property.
3. Tax returns
Income tax returns can validate how much people actually earned. The figures included on an income tax return may not align with the amounts deposited into joint checking accounts during the marriage. Income tax returns can provide insight into offshore assets and income that one spouse may have hidden from the other but still needed to disclose to tax authorities.
Gathering documents in advance can provide a better foundation for financial proceedings during divorce. Especially in a high-asset divorce scenario, taking time to collect records before filing for divorce or discussing the idea with a spouse can help people to better ensure a fair outcome.