Best Way to List Assets and Debts on a Marital Settlement Agreement

When navigating the complexities of divorce, one of the most crucial steps is preparing the marital settlement agreement (MSA). This document, often referred to as the divorce decree, outlines the division of assets and debts between spouses. However, many people are unaware of the specific requirements that courts have for these documents. Let’s dive into the essentials of listing assets and debts in your MSA and how to protect your privacy during the process.

Understanding the Marital Settlement Agreement

The marital settlement agreement is a vital component of the divorce process. It serves to formalize the terms agreed upon by both parties regarding the division of property and debts. It’s important to know that the courts have minimal requirements when it comes to what needs to be included in these agreements.

A common misconception is that you must provide detailed information about all your assets and debts. However, courts do not require values for these assets or debts, nor do they ask for full account numbers. This knowledge is empowering as it allows you to maintain a significant level of privacy during a process that is inherently public.

Protecting Your Privacy

Privacy is a significant concern for many individuals going through a divorce. Since divorce records are public, anyone can access your marital settlement agreement. To mitigate this risk, it’s essential to limit the information you provide in the agreement.

• Account Details: Instead of listing full account numbers, you only need to provide the name of the bank and the last four digits of the account. For example, you can state “Bank of America – Account ending in 1234”.
• Asset Identification: When listing assets like properties or pensions, simply identify them without giving detailed valuations. For instance, you can mention “Family home located at 123 Main St.” without stating its current market value.

This approach not only protects your privacy but also simplifies the documentation process. Many clients are surprised by how little detail is necessary, but this is a strategic move to safeguard personal information.

What to Include in Your MSA

While the courts do not require exhaustive details, there are still essential elements that must be included in your marital settlement agreement. Here’s a breakdown of what you should consider including:

1. List of Assets

Begin by creating a comprehensive list of all assets acquired during the marriage. This might include:

• Real estate properties
• Bank accounts
• Retirement accounts
• Vehicles
• Investments
• Pensions

For each asset, provide the bank name or relevant institution, along with the last four digits of the account number or a brief description. This keeps things straightforward and maintains your privacy.

2. List of Debts

Just as you list your assets, you should also document all debts incurred during the marriage. Common debts to include are:

• Credit card debts
• Mortgages
• Loans

Similar to assets, it’s sufficient to include the name of the creditor and the nature of the debt without providing detailed account numbers or balances.

3. Division of Assets and Debts

Clearly state how each asset and debt will be divided between you and your spouse. This can be done in a simple list format:

• Asset 1: Spouse A retains
• Asset 2: Spouse B retains
• Debt 1: Spouse A responsible
• Debt 2: Spouse B responsible

This section should be as clear and concise as possible to avoid any misunderstandings later on.

Common Mistakes to Avoid

As you prepare your marital settlement agreement, be mindful of common pitfalls that can complicate the process:

• Over-Detailing: Providing too much detail can expose sensitive information and complicate the agreement unnecessarily.
• Neglecting to List All Assets and Debts: Ensure that you account for all assets and debts, as failing to do so can lead to disputes later.
• Ignoring Privacy Concerns: Always prioritize your privacy by limiting the information you share.

Final Thoughts

Preparing your marital settlement agreement is a significant step in the divorce process. By understanding the minimal requirements and focusing on protecting your privacy, you can create a document that is both effective and secure. Remember, you don’t need to disclose every detail; instead, focus on the essentials that the court requires for processing your divorce.

If you need assistance with your divorce or preparing your marital settlement agreement, don’t hesitate to reach out for professional help. Navigating the complexities of divorce can be challenging, but with the right resources, you can ensure a smoother transition to your new chapter.

For more information or assistance, feel free to contact Tim Blankenship at Divorce661.