Navigating the Divorce Asset List: A Guide

Going through a divorce is difficult enough without having to sort through the complex finances. Dividing up assets and property is often one of the most contentious parts of finalizing a divorce settlement.

Having a complete and accurate divorce asset list can make the process smoother when you ultimately have to negotiate who gets what. I recently went through this process myself and learned some valuable tips I wanted to share.

Which Assets are Considered Separate vs. Marital Property

The first step is understanding which assets are deemed "separate property" versus "marital property" in your state. Separate property belongs solely to one spouse - either owned before marriage or received as a gift or inheritance during.

Marital property includes assets acquired by either spouse during the marriage, like your home, vehicles, retirement accounts, and so on. The concepts get more complicated when assets appreciate in value during the marriage. But keeping good records helps establish separate vs. marital property.

Valuing Assets Accurately is Crucial

You'll want to get professional appraisals done for your home, investment properties, businesses, and any other substantial assets. Valuations need to be current as of the date of separation.

For financial accounts, collect the most recent statements. Don't rely on Zillow for home value - get a formal appraisal. Take time to catalog other personal property and research estimated values. Documenting everything in detail now prevents issues later.

Updating (and Comparing) Your Lists

Don't consider your asset list a one-and-done task. You'll need to exchange lists with your spouse and attorneys and negotiate the division. That means continually updating account balances, getting revised appraisals, adding assets purchased after separation, and modifying values.

It can feel like you're obsessing over minor details, but in divorce settlements small discrepancies can turn into huge fights. Stay diligent about record-keeping throughout the process.

Getting Help Valuing Complex Assets

Certain assets like privately held businesses can require hiring valuation experts to determine fair value. Pensions also often need actuaries to calculate present values. And real estate appraisers are a must.

Even if it costs some upfront, getting impartial professional appraisals can prevent thousands in legal fees down the road haggling over figures. Know when to bring in the pros.

Dividing Property Equitably, Not Necessarily Equally

Don't assume every asset will be split 50/50. Courts divide marital property equitably - aiming for fair based on circumstances like income disparity, child custody, etc.

There's room to negotiate creatively - like keeping the home in exchange for retirement account funds. The asset list provides the starting data to have those discussions.

Using Spreadsheets and Keeping Copies

I recommend a spreadsheet format for your divorce asset list. This allowed me to sort entries, add formulas to total categories, and frequently update values. I kept both digital and hard copies stored in multiple places - don't risk losing all your hard work gathering data!

Going through a divorce with all the emotions involved is trying enough. Don't let wrangling over property and assets make it worse. I hope my experience helps you start your divorce asset list on the right foot. Let me know if you have any other tips!