Why is the preparation of financial statements important during the divorce process?
Before a reasonable property settlement can be negotiated, it’s important for both spouses in a divorce to disclose all assets, liabilities, sources of income, and expenses. By arranging this information in standard financial statements and by analyzing these statements, a financial planner or attorney with financial expertise can help you: (1) develop a realistic budget to follow prior to divorce; (2) devise a fair divorce agreement at the appropriate time; and (3) create an appropriate budget for your post-divorce life.
