One of the major tasks that has to be handled during a divorce is dividing the assets. This requires having a clear picture of the martial finances, including assets, debts, expenses, income and anything else that’s important for the division.
Financial transparency means more than just sharing bank account balances with each other. It includes providing insurance policies, pay stubs, retirement statements, valuable personal property and anything else that might need to be divided.
Why is hidden information a problem?
When financial details are incomplete, the spouse who doesn’t have the missing information can’t make an informed decision about how to proceed. If new information is found during the property division process, it may mean that the entire process has to start over, which can delay the finalization of the divorce.
How can you increase transparency?
Organizing all financial documents is one of the most important ways you can increase transparency. Providing a list of all assets and debts is important, but it’s even better if you have copies of the most recent statements or documents associated with them all. It may even help for each party to check their credit report to find out if they forgot about any debts.
Full financial transparency doesn’t mean that there won’t be disputes about property division. It’s possible that issues like challenges about fair market values or responsibility for debts could be contentious.
The property division process is just one reason why it’s critical to have sound legal guidance throughout your divorce. It’s imperative that you make decisions that are in your best interests so you can start your new life on the best footing possible.
