Guiding You Through Complex Legal Matters

Guiding You Through Complex Legal Matters

7 types of financial papers to have before you file for divorce

On Behalf of | Jan 19, 2024 | Divorce

Divorce can be complex, and preparing adequately is important for a smoother transition.

In Texas, it is helpful to have certain types of financial papers before you file for divorce. This helps with peace of mind, gives you more information and aids in a more streamlined process.

1. Income documents

Before initiating divorce proceedings, try to gather comprehensive income documentation. This includes recent pay stubs, tax returns for the past few years and any records of bonuses or additional income sources. Providing a clear picture of your financial standing helps with child support and the division of assets.

2. Property records

Texas operates under community property laws, meaning assets acquired during the marriage are generally joint property. Collect property records, including deeds, mortgage statements and appraisals. This information aids in the fair distribution of property between spouses.

3. Bank statements

Compile several months’ worth of bank statements for all joint and individual accounts. This includes savings, checking and investment accounts. These statements offer insights into your spending habits and financial stability, potentially influencing decisions on spousal support and child support.

4. Debt documents

List all outstanding debts, such as credit cards, loans and mortgages. Texans average $9,216 of credit card debt per household. Understanding the financial liabilities of both spouses is necessary for a fair division of responsibilities. Texas courts consider debt division as part of the overall divorce settlement.

5. Retirement account information

Obtain details about any retirement accounts, such as 401(k)s or IRAs. Retirement funds the spouses accumulate during the marriage are typically community property. Having comprehensive information on these accounts is necessary for a fair distribution plan.

6. Insurance policies

Include all insurance policies in your documentation, covering health, life, auto and property insurance. Understanding the coverage and beneficiaries is helpful for future financial planning and can ensure adequate protection for both parties.

7. Business records

If either spouse owns a business, gather relevant business records. This includes financial statements, profit and loss statements and details about business assets. Business interests may be subject to division in divorce proceedings.

Understanding the significance of each document type ensures a fair and just resolution to the complexities of marital separation.