Financial Bookkeeping During Divorce

Many people have their finances in order – they pay their bills on-time, keep information
organized for income tax filing, and maintain financial records from several years back.
Then their world is rocked in the form of a divorce, and suddenly past record keeping is
completely inadequate.

Divorce courts in many states require the completion of a financial affidavit that
summarizes all household expenses large and small for all family members. Few people
maintain this information with enough detail on such items as: cell phone bills; medical
expenses for the husband, wife, and children, including doctor fees, laboratory charges,
and prescription and over-the-counter medications; automobile expenses, including
gasoline, service, insurance, mileage, tolls, and parking; clothing purchases for and by
each family member; charitable donations in the form of cash, clothing, furniture, and
other goods and services; payment for household services like cleaning, maintenance,
repairs, and painting; child-related expenses for daycare, preschool, after-school
programs, classes, music lessons, tutoring, camps, and sports; gifts for family
members, friends, and colleagues; all types of entertainment; and all family, business
and personal travel. Furthermore, the court often requires information dating back
several years.

Your divorce financial planner, attorney, or mediator may suggest that you work with a
bookkeeper or financial organizer who specializes in gathering and organizing
information for the financial affidavit. Don’t be surprised if the bookkeeper gives you
“homework” before your first meeting:

• Gather and organize all your financial records for the past three years, including bank statements, checkbook, tax returns, credit card statements, utility bills, and as many receipts as you have for goods and services.
• Track down bills and receipts that you misplaced or discarded.
• Locate state and federal tax returns for all family members for the past three years.
• Fill out a pre-meeting questionnaire so that your first meeting can move forward more quickly and efficiently.