Financial Checklist for Divorce - Documents & Preparation

The financial aspects of divorce are often the most complex and consequential. Gathering the right documents early, understanding your complete financial picture, and protecting your financial interests can make the difference between a fair settlement and years of regret. This detailed checklist covers every financial document and preparation step you need.

Income Documentation

Income is the foundation for calculating child support, alimony, and each spouse's ability to maintain their lifestyle after divorce. Gather comprehensive income documentation for both spouses:

• Pay stubs: At least the most recent 3-6 months for both spouses. Include bonus, commission, and overtime breakdowns.
• Tax returns: Federal and state returns for the past 3-5 years, including all schedules, W-2s, 1099s, and K-1s
• Self-employment records: If either spouse is self-employed -- profit and loss statements, business tax returns, 1099-NEC forms, QuickBooks reports
• Bonus and commission history: Documentation of bonus structures, commission agreements, and historical bonus/commission payments
• Stock options and RSUs: Grant dates, vesting schedules, exercise prices, and current values for all stock options, restricted stock units, and other equity compensation
• Rental income: Lease agreements, rental income history, and expense records for any rental properties
• Investment income: Dividend statements, interest income, capital gains reports
• Government benefits: Social Security statements, disability payments, veterans' benefits
• Trust income: Trust documents, distribution history, and income statements for any trust interests

Bank and Financial Accounts

You need a complete picture of all liquid assets. Many couples discover accounts they forgot about or did not know existed during this process.

• Checking accounts: 12-24 months of statements for all accounts in either or both names
• Savings accounts: Current balances and 12 months of statements, including high-yield savings and money market accounts
• Certificates of Deposit (CDs): Maturity dates, interest rates, and early withdrawal penalties
• Brokerage accounts: Current statements showing all holdings, including individual stocks, bonds, mutual funds, and ETFs
• Cryptocurrency: Holdings on all exchanges and wallets, transaction history
• 529 education savings plans: Account statements, contribution history, and beneficiary designations
• Health Savings Accounts (HSAs): Current balances and contribution history
• Safety deposit boxes: Inventory of contents in any safety deposit boxes
• Cash value life insurance: Policy statements showing cash surrender value and loan balances

Retirement Accounts

Retirement accounts are often the most valuable marital assets after the family home. Division of retirement accounts requires special legal documents (QDROs for employer plans), so identifying all accounts early is essential.

• 401(k) and 403(b) accounts: Current statements, employer match information, vesting schedules, and loan balances
• Traditional and Roth IRAs: Current statements, contribution history (especially tracking any pre-marital contributions)
• Pension plans: Benefit statements, vesting status, projected monthly benefit at retirement. If either spouse has a defined benefit pension, this may require a formal valuation by an actuary.
• Thrift Savings Plans (TSP): For federal employees and military members -- current statements and contribution history
• Deferred compensation plans: Nonqualified deferred compensation, stock option plans, and other executive compensation
• Social Security benefits: Download your Social Security statement from ssa.gov. If married for 10+ years, a spouse may be entitled to benefits based on the other spouse's earnings record.

Real Estate and Property

• Mortgage statements: Current balance, interest rate, monthly payment, and escrow details for all properties
• Property deeds: Copies of deeds showing ownership and any liens
• Property tax records: Annual property tax bills and assessment notices
• Home equity lines of credit (HELOCs): Statements showing available credit and outstanding balances
• Homeowners insurance: Current policy, coverage amounts, and premium
• Recent appraisal or CMA: If available, any recent appraisal or comparative market analysis. You may need to hire an appraiser for an updated valuation.
• Improvement records: Documentation of major home improvements, renovations, and repairs (receipts, permits, contractor agreements)
• Rental properties: Lease agreements, rental income records, expense records, and property management contracts
• Vacation homes and timeshares: Ownership documents, current values, annual fees, and maintenance costs

Debts and Liabilities

Debts are divided in divorce just like assets. A complete accounting of all debts is essential for a fair settlement.

• Credit card balances: All credit cards in either or both names, including store cards and gas cards
• Student loans: Balances, interest rates, monthly payments, and repayment plans. Note when each loan was taken -- pre-marital student loans are typically separate property.
• Auto loans: Balances, interest rates, and monthly payments for all vehicle loans and leases
• Personal loans: Including loans from family members or friends (document these carefully)
• Medical debt: Outstanding medical, dental, and mental health bills
• Tax liabilities: Any unpaid taxes, tax liens, or IRS payment plans
• Business debts: Loans, lines of credit, and other liabilities for any business interests
• Judgments: Any court judgments, liens, or legal settlements owed

Credit Reports

Pulling credit reports for both spouses is one of the most important steps in divorce financial preparation. Credit reports reveal accounts you may not know about, joint debts, and potential financial red flags.

• Get reports from all three bureaus: Equifax, Experian, and TransUnion. Each may have different information. Free reports are available at annualcreditreport.com.
• Identify all joint accounts: These will need to be addressed in the divorce settlement -- either closed, refinanced into one name, or paid off.
• Check for unauthorized accounts: Look for any accounts you did not know about or did not authorize.
• Monitor during the process: Continue checking your credit during the divorce process to catch any new debts or unauthorized activity.
• Consider a credit freeze: If you are concerned about your spouse opening accounts in your name, a credit freeze can prevent new accounts from being opened.

Insurance Policies

• Health insurance: Current plan details, coverage, premiums, and whether coverage is through an employer. Plan for how health insurance will be handled post-divorce (COBRA, marketplace plans, or new employer coverage).
• Life insurance: All policies, including term, whole life, and universal life. Note policy owners, beneficiaries, death benefits, and cash values. Life insurance is often required as part of divorce agreements to secure support obligations.
• Auto insurance: Current policies, coverage levels, and premiums. You will need separate policies after divorce.
• Homeowners/renters insurance: Current policies and coverage
• Disability insurance: Both individual and employer-provided policies
• Umbrella/liability insurance: Any additional liability coverage
• Long-term care insurance: Policies and premium costs

Business Interests

If either spouse owns or has an interest in a business, the business is potentially a marital asset that must be valued and divided. Business valuation is one of the most complex aspects of divorce.

• Business tax returns: 3-5 years of business tax returns (corporate, partnership, or Schedule C)
• Financial statements: Profit and loss statements, balance sheets, and cash flow statements
• Partnership or operating agreements: Including any buy-sell provisions or valuation formulas
• Business bank statements: At least 12 months
• Accounts receivable and payable: Outstanding receivables and payables
• Valuation: You may need a professional business valuation. Common methods include income approach, market approach, and asset approach. Costs for a formal business valuation typically range from $5,000-$25,000.

Personal Property

• Vehicle values: Current Kelley Blue Book or NADA values for all vehicles
• Jewelry and valuables: Appraisals for significant jewelry, art, antiques, and collectibles
• Furniture and household goods: Generally not appraised individually unless items are particularly valuable. Agree on fair market value or divide in kind.
• Electronics and equipment: Computers, cameras, tools, sporting equipment
• Pets: While pets are legally property, many courts now consider pet custody arrangements

Creating a Post-Divorce Budget

Before you can negotiate effectively, you need to understand what your financial life will look like after divorce. Create a detailed monthly budget that includes:

• Housing costs (rent or mortgage, utilities, maintenance, property taxes)
• Food (groceries and dining)
• Transportation (car payment, gas, insurance, maintenance, parking)
• Healthcare (insurance premiums, copays, prescriptions, dental, vision)
• Childcare and children's expenses
• Insurance (renters/homeowners, life, auto)
• Debt payments (credit cards, student loans, personal loans)
• Savings and retirement contributions
• Personal expenses (clothing, grooming, entertainment, travel)
• Professional services (attorney, accountant, therapist)

Frequently Asked Questions