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:
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.