When you’re ending your marriage, dividing everything can be more complicated than you expect, especially when it comes to money and property. Often, confusion arises regarding who owns what, what is eligible for division and how much property is worth.
In these cases, financial accounting and asset tracing may be necessary. These processes ensure fairness and transparency, especially if there’s a risk of someone hiding assets.
Following the money trail: Understanding the basics
Financial accounting during a divorce involves a detailed review of each spouse’s assets and liabilities. These can include bank accounts, investments, real estate and even debts. Professionals like forensic accountants examine these to ensure everything is accounted for.
Asset tracing is a bit different. It’s the process of tracking assets to determine their origin, movement and current status. This process is vital if there’s suspicion that someone is hiding or mispresenting assets and ownership. Trained professionals can uncover hidden bank accounts, undervalued properties or concealed investments.
These processes require both spouses to provide detailed financial information. You’ll need to gather bank statements, tax returns, property deeds and other relevant documents. It can be a lot of work, but it’s essential for a fair division of assets.
The risks of skipping these steps
Nebraska is an equitable distribution state. This means the courts aim to divide marital property fairly, not necessarily equally. Accurate financial information is crucial for this process.
Neglecting financial accounting and asset tracing can have significant drawbacks:
- Unfair settlements: Without thorough accounting, the division of assets may not be fair.
- Missed assets: Some assets might remain hidden, affecting the financial future of one party.
- Legal complications: Future legal disputes may arise if you later discover unreported assets.
These risks underscore the importance of thorough investigation. By taking the time to understand the financial aspects of divorce and seeking the help of outside professionals when needed, you can protect your rights to equitable division and receive a fair share of your marital assets.