Financial preparation for a Texas divorce begins with a clear inventory of what you own, what you owe and the records supporting those figures. Collect current documents and the older records needed to explain ownership or a major financial change.
This preparation is not a substitute for responding to formal discovery. Your lawyer should identify the documents, date ranges and deadlines required in your particular case.
For clients seeking divorce representation in Austin, an organized financial picture helps identify what is known, what is disputed and what still needs to be obtained.
Begin with an inventory, not a pile of statements
Create a list with one row for each account, asset or debt. Include the institution, a partial account identifier, whose name appears on it, the approximate value or balance and the date of that figure.
Add a column for the supporting document and another for missing information. This makes it easier to see whether the file contains several statements for one account while overlooking another entirely.
Texas Family Code Section 6.502 permits temporary orders requiring a sworn inventory and appraisement, a list of debts and production of documents. If you receive an order or request, follow its specific requirements rather than relying on a general checklist.
Income and employment records
- Recent pay statements and available year-end income records.
- Tax returns and supporting schedules for the years your lawyer requests.
- Bonus, commission, equity-compensation and benefit information.
- Records of a recent job change or a significant income change.
- Business financial records if self-employment or ownership is involved.
Distinguish gross receipts from personal income when a business is involved. Keep the original records so your lawyer and any financial professional can evaluate the appropriate figures.
Bank, investment and retirement accounts
Locate complete statements for checking, savings, brokerage and retirement accounts. Include closed or transferred accounts if they explain the history of money now held elsewhere.
For retirement assets, identify the exact plan and administrator. A 401(k), pension and IRA may require different documents and different division procedures. Note account loans and rollovers.
Statements near the marriage date can be important where separate property is claimed. Under Family Code Chapter 3, property characterization depends on acquisition and proof, not only the name shown on an account.
Homes, vehicles and other valuable property
Gather deeds, purchase and closing documents, loan statements and available valuation information. For vehicles, include title and financing records. Identify major personal property that may need a separate valuation discussion.
If a down payment came from an inheritance or premarital funds, preserve the documents connecting the source to the purchase. A single closing statement may not establish where the money originated.
Keep estimates clearly labeled. An online estimate, a tax appraisal and a professional valuation are different documents and should not be presented as interchangeable proof.
Debts and regular expenses
List credit cards, mortgages, vehicle loans, personal loans and other claimed obligations. Record the current balance, account holders, payment amount and any collateral. Note disputed or unfamiliar items separately.
Prepare a monthly expense worksheet that identifies recurring costs and irregular expenses. Use records where available and label estimates. The worksheet should make it possible to understand the figure, not merely provide a total.
Agreements and ownership history
Include any premarital or marital agreement, trust or estate distribution document relevant to the assets being discussed. Provide complete signed documents when available.
For a separate-property claim, build a timeline from the original acquisition to the present asset. Missing months or transfers are questions to flag early. Do not try to repair the history by editing a statement or creating a document that looks like an original record.
What if you cannot access a document?
Write down the institution, account or record type and the period that is missing. Tell your lawyer what you can lawfully access and what you cannot. The appropriate request or formal process depends on the case.
Do not access another person’s account without authorization or share passwords to obtain records. Preserve information you already have through lawful access and follow your lawyer’s instructions for secure delivery.
Keep the file usable during the case
Name files by institution and statement period, keep complete pages together and maintain an index. Save new statements without overwriting earlier ones. When a balance changes, update the worksheet and retain the document supporting the new figure.
A useful handoff contains the inventory, the supporting records and a short list of unanswered questions. That lets the legal discussion focus on the actual financial issues instead of reconstructing the folder.
Published by The Alchemy Attorneys, PLLC. This article provides general information about Texas law, not advice for a particular case.
