“I’m Taking Everything!”

No, you most likely will not take “everything” during the Division of Assets phase of your divorce negotiations. You may not even get half, because New Jersey is an “Equitable Distribution” (as opposed to a “Community Property”) state.

This means you need to evaluate what is fair to each party, and not necessarily what adds up to a 50-50 split.

However, it is possible that your share could equate to half of the whole. Or it could be more. Or it could be less…

Create a Balance Sheet

View a Sample

Before creating your own balance sheet, it may be helpful to see a sample:

Know Your Exceptions

List all of your assets including real estate, non-retirement assets, cars and other vehicles, personal property of value, and retirement accounts.

Exclude the following exceptions:

1. Assets acquired prior to marriage that remained inactive during the marriage

2. Gifts from third parties

3. Inheritance

529 Accounts

If a 529 account is funded by a grandparent, it is not a marital asset. If it is funded by parents, then they should close the accounts and open separate accounts. The 529 is the parent’s asset, not the child’s.

For your convenience, you can download the Excel Workbook below. It should be helpful in listing your assets and establishing your balance sheet. (Please note: You need to have the Excel software to use the file.)

Pre-nup

If you have signed a pre-nuptial (or post-nuptial) agreement, it is highly advisable to review it with your attorney prior to your mediation session or meeting with your financial advisor.

Time to Get Busy

Are you eager to divvy up your assets? Well, you have some work to do first. Follow the steps below.

STEP 1: Gather Your Documents

• Tax Returns (Federal & State)

• Pay Stubs

• W-2’s and/or 1099’s

• Valuation of Partnerships & Other Business Interests

• Valuation of Real Estate Property/Properties

• Valuation of Vehicles, Boats, Trailers

• Savings, Checking, Money Market and CD Accounts

• Non-Retirement Investments, such as Stocks, Bonds, Secured Notes, Mutual Funds

• Executive Compensation: e.g., Stock Options, RSUs or Other

• Retirement Accounts and Pensions

• Annuities, IRAs, Deferred Compensation

• Life Insurance (Whole Life Policies)

• Jewelry, Antiques, Art, Coin Collections, or Other Property with significant value

• Accounts Receivable & Unsecured Notes

• Real Estate Loans

• Credit Cards and Revolving Credit

• Other Loans and Debts

• Homeowner insurance policy information, auto insurance information, health insurance information

STEP 2: Enter the data into a balance sheet

STEP 3: Meet with Your C.P.A or Financial Adviser

Review the list of items you need to provide to your accountant or financial adviser to conduct a prompt, thorough and accurate accounting of your assets.

Then, during your mediation session, you will discuss and decide on an equitable distribution between the two of you. Responsibility for liabilities will also need to be addressed.

Negotiation Tips

Know Your Priorities & Compromises

To get your equitable share of the assets, arrive at your mediation session prepared with knowing what you are willing to give up in order to get what you want most.

Knowing your priorities and comprises is key to successful negotiations.

You need to have a “win-win” mindset by fully accepting and acknowledging that you most likely will not be entitled to taking “everything.”