Many of the most challenging aspects of divorce relate to property division. Therefore, it is critical that people have appropriate records regarding their financial circumstances during the marriage.
Technically, spouses have an obligation to provide accurate financial records and inventories of assets to each other and the courts during divorce. However, some people drag that process out for as long as possible or even try to manipulate records.
Obtaining copies of critical records before filing for divorce or leaving the marital home can help people prepare. What records do people generally need?
Account statements
Monthly account statements from banks and credit card companies, as well as lenders who provided mortgages or car loans, can be critical during divorce proceedings. Those records help establish how spouses use their money during marriage. They can also raise questions about certain financial activities that may have been inappropriate, such as wasting money on an affair.
Income tax returns
Sometimes, spouses are not honest about their income throughout the marriage. They may hide what they earn by transferring a portion of their wages to a hidden account every time they receive a paycheck. Income tax returns can provide insight into discrepancies between what someone earned and the money in joint accounts.
People may also need ownership records for key assets and any paperwork showing that they owned certain assets before marriage. Discussing marital circumstances with a legal professional can help people identify what other records and documents they need to gather before filing for divorce. Appropriate preparation can significantly reduce the risk of unfair outcomes.