Thorough preparation can help with a smooth and streamlined divorce in Texas. One step in preparing is to gather important financial documents.
Having these documents ready may clarify your goals and your assets and debt situation.
1. Income documents
Start by obtaining documents that provide a comprehensive overview of your income, and ideally, your spouse’s. This includes pay stubs, tax returns and any documentation related to bonuses or other sources of income. These documents help establish a clear picture of the financial resources available to each party.
2. Bank statements
Gather several months’ worth of bank statements for all joint and individual accounts. This includes checking, savings and investment accounts. Bank statements offer insight into spending habits, account balances and any unusual financial activities.
3. Property records
Compile records related to any real estate owned jointly or individually. This includes deeds, mortgage statements and property tax documents. These records aid in determining the value of properties and understanding the implications of their division.
4. Debt documentation
Obtain documents detailing any outstanding debts, such as credit card statements, loan agreements and information on mortgages. Understanding the existing debt is necessary for division during divorce proceedings.
5. Retirement account statements
Gather statements for all retirement accounts, including 401(k)s and IRAs. These documents help evaluate accumulated assets and can determine division.
6. Insurance policies
Collect information on all insurance policies, including health, life, auto and property insurance. Understanding the coverage and beneficiaries aids with planning post-divorce financial stability.
7. Business records
About 3.2 million small businesses operate in Texas. If either spouse owns a business, gather relevant business records, including financial statements, profit and loss statements and ownership agreements. This information is necessary for determining the value of the business and its potential impact on the divorce settlement.
8. Personal property inventory
Create a comprehensive inventory of personal property, including valuable assets such as jewelry, artwork and furniture. This inventory can be useful when discussing the division of personal property during divorce negotiations.
Gathering these important financial documents lays the groundwork for a well-informed and fair divorce process in Texas.