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S.T.E.P.S. - Smart, Tailored, Event-Driven, Packaged Solutions
provided by Women's Financial Network at Siebert
Determining Your Net Worth
-- Part II
First things first. Before you can make decisions regarding separation of assets, you need to have a realistic estimate of what you and your spouse are worth together and what you're worth on your own, or your net worth. It's easier than you might think.
- Net worth = Assets - Liabilities
Assets
Assets may simply be defined as anything that you and your husband own. This includes everything from your home and jewelry to your bank account and investments. To accurately calculate this figure, try to separate any assets you think you may have into three categories: - Combined assets held by you and your spouse such as savings accounts, money market or brokerage accounts, mutual funds, or a co-owned business in both of your names
- Assets that are solely yours, such as a savings account that you opened before you were married and have been the sole contributor to, or your great grandmother's antique cameo earrings
- Your partner's assets like his individual IRA, or assets left to him by his parents
1. How do I know what's "mine"?
Each state has its own specific divorce laws, but in general any property you acquire before you marry is considered your property and therefore "yours" to keep. Once you're married, things get a bit stickier. - You'll have to consult a divorce attorney to find out what your particular state's rules are and how much of your assets you can expect to keep.
2. What about family businesses?
If you and your spouse are involved in a family business together and want to dissolve the partnership with your marriage, you'll first need to value the business so you can conduct a fair buyout. - Valuation depends on value today, growth expected, and liabilities outstanding.
- You can buy each other out, sell the business and divide proceeds, or trade other assets such as the house or cars for the business.
HerTip: Ask for help. A trusted banker, CPA, or lawyer can help you to assess the value of your business.
3. Get it appraised
If you're ever unsure as to what an asset is actually worth, it's a good idea to get it appraised. The more accurate your estimate is, the more fairly you'll be able to separate your assets. - American Society of Appraisers (www.appraisers.org or 800-272-8258) can provide accredited appraiser in your area.
Liabilities
Liabilities may be defined as what you owe. - Determining your total liability is easier than calculating assets because you can order a credit report and see a list of all of your current creditors. Keep in mind though that your credit report may have an incomplete listing of your current creditors so cross reference this list with your own records.
- Visit Experian (www.experian.com or 1-800-682-7654) or Equifax (www.equifax.com or 1-800-685-1111) for fast and easy access to a copy of your credit report.
Subtract!
Now that you have number values for both your assets and liabilities, just figure the difference between them and you'll have a good idea of what you're worth on your own.
Continue on:
Part III: Hiring an attorney
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