The more thoroughly people prepare before initiating the divorce process, the easier divorce may become. While spouses do have an obligation to provide records to one another during the discovery process of divorce litigation, discovery can be lengthy and relatively expensive.
There’s also the possibility of one party withholding information or intentionally altering financial records in an attempt to manipulate the legal process. People preparing for divorce often begin by collecting financial records long before they file any paperwork in court.
What documents are the most important to have direct copies of before filing or serving a spouse?
1. Income tax returns
Even though spouses often file joint returns, only one spouse may manage the tax return preparation process. Reviewing tax returns can help people find discrepancies between actual income and the amount deposited into shared accounts or signs of hidden assets.
2. Bank and investment statements
Detailed monthly statements from financial institutions can help people track not just income but also spending habits. Monthly statements can help people identify attempts to divert income. They can also help establish a standard of living during the marriage.
3. Credit card statements
People use their credit cards so frequently that monthly statements can be pages long. There can be important information buried in those transactions. People may find evidence of a spouse moving money to acquire digital investments that are hard to track or warning signs of the dissipation of marital assets.
Financial records often play an important role in establishing what is fair and reasonable for the purposes of property division and financial support. Securing copies of key records can help people understand their circumstances and determine the best way to approach an upcoming divorce.