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WHY IT IS IMPORTANT TO LIST ALL ASSETS AND LIABILITIES

Divorce: Why it is Important to List All Assets and Liabilities


There is also an asset and liability section to the case information statement. It’s important to list all your assets. Just because you think your spouse may not be entitled to an asset is not a reason not to list it because you sign the case information statement, certify that everything is true and if there is a trial it can be used in cross examination. You can always amend it, you can always update it till the date of the trial but to deliberately leave something out is probably one of the biggest mistakes that you can make.

If you think your spouse isn’t entitled to share in an asset there’s a reason -- there’s a place to say why, at least in a word or two, but make sure you list the asset.

There’s also a section there for the value of the asset. If you’re estimating say you’re estimating, make sure you don’t guess. You can always say unknown and all that means is that ultimately the asset may be appraised.

Also list all your liabilities. If you borrowed money from Mom and Dad or Uncle Henry make sure that you list that as well, and consistent with that if you’re going to borrow money during your divorce make sure you sign a note because courts tend not to believe oral agreements to repay money, but they do take notes and documented loans much more seriously. So it’s important to make sure that the loan is documented somewhere.

In those notes have a repayment schedule. If your relative or friend is going to, is going to forgive the loan down the road, that’s a different discussion. But at the time that you file your case information statement make sure it’s listed and make sure it’s documented.

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July 20, 2008
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