Dec 19, 2016
If your Family Law property settlement is either in Court, being negotiated or in mediation, it is likely that you will encounter a ‘balance sheet’. A balance sheet is a list of assets and liabilities held by the separated parties. The balance sheet also includes add backs, financial resources and superannuation. The purpose of a balance sheet is to calculate the net asset pool of the shared parties and to ensure all assets and liabilities are fully disclosed.
Preparing a balance sheet requires the following steps:
- List all the assets and liabilities that you own individually, that your former partner owns individually and that you own jointly;
- Find supporting documentation evidencing each of the assets and liabilities;
- List the most recent value for that asset or liability or estimate what you believe that asset and liability is worth
- Give the partially completed balance sheet to the other party
- Allow the other party to add in any additional assets or liabilities that may be missing and note down if they agree with the values that you have listed
- Find out the total net asset pool
The balance sheet is a great tool for determining exactly what is in your net asset pool, which items are likely to remain in possession of yourself or the other side and which items you and the other side are happy to sell and split.
If you have questions about how to do a property settlement, please contact Andrea Harrold at aharrold@franklaw.com.au.
This is not legal advice.
