In case of a divorce, you should prepare a Worksheet to be used as the basis for your asset division. An example of this is the Worksheet to determine the child support if the couple has more than one child or the Medical Expense Worksheet to determine how much each spouse will pay in medical expenses. A worksheet like this can be a valuable tool in divorce proceedings. Here are some guidelines on what it should include:
The basic information should include how much each spouse is required to pay in support money, the number of children they have, how many times they have been married, and any other questions that you may have. You can also add how much the children will have with any children they may have, if there are any of them who will live with their dad or mom. On the first page, you should also write the current address of both parents so you can see where the payments will be made.
You should also include all of the expenses for the children or medical expense in which either party will be covered. If there are other assets, such as retirement accounts, it should be mentioned in the Worksheet too. It is not necessary to include property that is not included in the asset division, such as inheritances.
If the divorce is uncontested, you can include the amount of assets owned by the parties at the time of the marriage or ownership through the marriage, but you cannot claim an asset as yours if you cannot prove you had it before the divorce. If the divorce is contested, you must prove that you owned the asset before the marriage.
After you have figured out your financial information and get it in a file that you can refer to, divide the amount you estimated for assets and liabilities into three categories. These are assets, liabilities, and assets minus liabilities. Divide them equally, then divide the difference between the two.
Assets include all items you owned before you got married, such as jewelry, investments, cars, and any furniture. Assets not included in this category are the property that belongs to both of you like the home.
Liabilities are items that you own and were acquired after the marriage. Liabilities do not include assets. Items like student loans, a mortgage, car payments, and credit cards are all considered liability. Liability cannot be paid by one party and must be paid by the other party.
Finally, divide assets minus liabilities. This is your final sum, minus the total you have calculated, which is your net worth after taking into account all the deductions and subtracting the portion you deducted for expenses. You can use this figure to figure out the value of assets to avoid any disputes later. Once you have this figure, you can add up assets and liabilities, then subtract the difference, and you have your final Divison of Assets and Liabilities Worksheet.