Checklist for Financial Documents You Need for Divorce

Divorce is an emotionally charged process and even the most amicable divorces can feel stressful and messy. Untangling finances and deciding how you will divide up assets and debts is a required part of every divorce. You may need other financial documentation related to the children if you have minor children. If you are thinking about a divorce, or are in the early stages, you can start to gather financial documents. This preparation and organization can help reduce stress.

Below is a checklist of common financial documents you may need.

But first, a story. A tale of two divorces.

Divorce Scenario #1: Jim and Sally were married for over 30 years. Jim managed most of the finances and has access to retirement statements and brokerage accounts. They have a sizeable estate to divide with multiple accounts to work through. Sally hasn’t been involved as much with the finances. Both Jim and Sally expressed they want an amicable divorce and to work together to reach resolution. They have attorneys and are not contesting the divorce, however, they still are in a divorce process where they follow the traditional court-based timeline and procedures for divorce. Sally’s attorney is more cooperative in spirit and communication than Jim’s - despite the clients expressing they want to be cooperative with one another.

Sally would like some documents related to the finances so she can make informed decisions about division of assets. Sally reached out to Jim directly and asked him to send her copies of the most recent statements. Jim’s response: “My attorney advised me not to share those. “ The next step for Sally to get information related to financial accounts that are part of her marital property is for each side to send the other time-consuming, stress-inducing interrogatories (a long list of questions each client must answer to determine facts) and formally request documents in the discovery process.

Divorce Scenario #2: John and Julie were married for 25 years. John managed all of the finances and they have multiple properties, retirement, stock, a business, and other assets in the portfolio. John and Julie chose the collaborative divorce process. As part of the standard process, John willingly produced documents related to any financial asset. These documents were then shared openly with Julie’s attorney and the other professional team members. Julie and her attorney openly asked John and his attorney questions about the finances in team meetings.

Which one of these two scenarios sounds like a better way to divorce - which one would you want? As we say often on this website, choosing the attorneys you work with and the legal process for how you get divorce is crucial for the experience you have during the divorce.

Now, back to the checklist.

Financial Records and Assets

• Income Documentation: Pay stubs, W-2s, 1099s, proof of any other income sources (investment properties, rental agreements, dividends, interest, lottery winnings, etc.) for the past few years - or at least since your last tax return.

• Bank Statements: Checking, savings, and any other account statements covering a similar timeframe.

• Retirement Accounts: Statements for 401(k)s, IRAs, pensions, 403(b), IRA, Roth IRA, military, and any other retirement plans.

• Investment Statements: Records from brokerage accounts, mutual funds, etc.

• Certificates: for any other stocks, bonds, and mutual funds.

• Tax Returns: Federal and state tax returns (including W-2s, 1099s, K-1s) for the past few years.

• Property Deeds: Documentation for any jointly owned real estate.

• Vehicle Titles: Titles for all owned vehicles (cars, boats, airplanes, etc.) and any financing documents.

• Life Insurance Policies: Documentation on policies for both spouses.

• Appraisals: Recent appraisals for any valuable assets (jewelry, artwork, etc.).

• Business Documents: If applicable, partnership agreements, financial statements, stock redemption/buy-sell agreements, and tax returns for any jointly owned businesses.

• Prenuptial Agreement (if applicable): This document can significantly impact asset and debt division.

• HSA account balances

• 529 plans

Debts

Gather statements related to:

• Mortgages for all properties

• HELOC loans

• Personal loans

• Credit Cards

• Student loans

• Tax Debt

• Promissory Notes

• Lawsuits pending or previously filed in any court

• Any other debts

Don't Forget:

• Safe Deposit Box Inventory: Make a list of the contents if you have a joint safe deposit box.

• Credit Reports: While not always required, a credit report can give a complete picture of outstanding debts.

Miscellaneous Financial Information:

If you have children, you will need to have information related to children’s expenses.

Specifically: after school care or day care tuition, summer camp expenses, and the children’s portion of medical and dental coverage expenses.

You may be asked to create a budget for anticipated future living expenses as well. This requires gather other financial data - that’s a blog post for another time.

Reminder: This list is not exhaustive, and the specific documents you'll need may vary depending on your situation and state laws. Consulting with your attorney or the financial professional on your divorce team is the best course of action to ensure you have everything required for a smooth financial resolution in your divorce settlement.

As you can see, this is a long list. It is easy to start with crossing off anything that does not apply to your situation. Then taking it step-by-step, blocking off chunks of time on your calendar to start gathering and organizing.

We here at Divorce Well Knoxville want to help you navigate divorce as smoothly as possible. Please fill out a contact form to learn more about your divorce options and how our approach to divorce is different than the traditional litigation path.