Preparing a Debt/Asset Sheet

Master Debt Asset Sheet: 2024-12-02 DA Sheet

Preparing a Debt Asset Sheet

Every divorce should contain a debt asset sheet.  Each sheet is an excel spreadsheet that lays out a few different facts but the key facts needed to prepare a Debt/Asset Sheet.  Some of the key issues.

• Date of Valuation

  • The date of valuation is always an issue. Be sure you coordinate with the lead attorney on this (if you are the lead attorney be sure that the dates in the NOTES section are close to each other).
  • Generally speaking, the values we are using for the debts/assets should all be from around the same date.
  • see article for more info on determining DOV: Divorce – Date of Valuation – K|H Law Wiki

• Real Property

  • List the homes and land (real property) here.  In naming the property, list the address for a regular home. If there are multiple parcels of land, then further identify them by using the Parcel ID Numbers, # or Acres, or Nicknames used by the parties.
    • For Instance: 214 W Main St, Mankato or Waseca County 33 Acres (PIN 012.23.0212) or Martin County 54 Acres (Marvin’s Land)
  • The “TOTAL VALUE” of the property will be the estimated market value
    • In NOTES, indicate where the value came from (per client, tax value, appraisal, etc)
    • If no appraisal is provided, we should default to the estimated market value on the tax statement
  • As of 12/2/24 – we are listing debts right under the property NOT separately in the debt section:
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  • Debt always follows the asset so be sure to include mortgage, HELOC, and any other debts that are directly tied to the Real Property.
    • under NOTES be sure to reference where the debt amount came from
  • The Exhibit should be a copy of the document that is in the Debt/Asset Exhibits folder.  Hyperlink them if/when you are preparing for trial.

• Bank Accounts

  • This is where we list checking accounts, savings accounts, and HSA Accounts (Health Savings Accounts).
  • List each account by the NAME of the account, the last four of the account and be sure to put a (H) = Husband (W) = Wife (J) Joint, which references in whose name the account (NOT who gets it.)
    • For Instance: State Bank of Fairmont Ckng x2121 (H); or MN Valley FCU Sav 13-01 (J)
  • With Credit Unions, checking and savings may sometimes be the same account number but then have a different suffix like 19289-001 and 19289-303. Make sure you include the numbers that distinguish the accounts. Also note that credit union statements will often include loans and debts as well, so make sure you are paying close attention to these statements.
  • Notes should indicate where we got the value from
    • For Instance: “11/01/23 Statement“
  • Exhibit should be that statement.
  • LOANS and debts do NOT go here.
  • If we are aware an account exists from the intake form or from talking with the client, but we don’t have statements, list the account and then in “Notes” indicate how we know the account exists, and that we need statements.

• Retirement account values

  • List the account name and be sure to put a (H) = Husband (W) = Wife (J) Joint, which references whose name the account is in (NOT who gets it).
    • For Instance, Vanguard Roth IRA x1236 (H) or Franklin Templeton 401k x6432 (W)
  • NOTE: For pensions, don’t list a value in the table, instead just put an X in the column of the party getting the pension. In the Notes Section, provide a cash value of the Pension and/or number of years of employement just so the attorney has an idea the size of the Pension.
    • For Instance, Cash Value as of 10/1/23 = $45,611
  • Another method is if we don’t have an exact number is to put “SPLIT” in the columns.
  • For more info on retirement accounts, see article: Family Law – Retirement Accounts – K|H Law Wiki

• Life insurance values

  • We only need to list WHOLE life insurance policies as they have a cash value. TERM life insurance policies have NO CASH VALUE and do not need to be listed.
  • Put NAME of company, last four of account and be sure to put a (H) = Husband (W) = Wife (J) Joint, which references whose name the account (NOT who gets it)
    • For Instance, State Farm Whole Life x4324 (H)
  • Universal life usually has a cash value.
  • The value of the policy is not the “face value” so if the policy says its face value is $250,000, that is simply the amount that will be paid when the person dies and not the value we list o the DA sheet. We are looking for something that says cash value or surrender value.
  • Sometimes there are loan taken out against Life Insurance policies, which need to be accounted for in the value of that policy. Ensure you review the statement and see if there is any indication that there is a loan taken out again the policy and, if so, we need to ensure that amount is not considered part of the value.
  • For more info on life insurance policies, see article: Family Law – Life Insurance Policies – K|H Law Wiki

• Vehicles

  • List each vehicle by the year, make, model. Be sure to put a (H) = Husband (W) = Wife (J) Joint, which references whose vehicle it is.
    • For Instance, 2018 Honda Ridgeline (H)
      • NOTE, this might be in dispute in which case leave it blank.
  • Hopefully, the client has provided a KBB (or similar) value for the vehicle. If they haven’t, ask them to do so or do it yourself if you have enough information.
    • We usually use “good” condition and private party resale.  Be sure to save the KBB summary to the file as it’s going to be an exhibit.
    • For more information on completing and save the KBB value see article: Family Law – KBB Value – K|H Law Wiki
  • Remember that you will get a value range and we always want to use what is best for our client. If it’s our client keeping the vehicle, use the lowest value. If it’s the opposing party keeping the vehicle, use the higher value.
  • The “TOTAL VALUE” of the vehicle will be the Fair Market Value.
    • In the Notes Section, indicate how the value was determined (KBB, appraisal, client estimate, etc)
    • (As of 12/2/24 – we are listing debts right under the property.
  • Debt should follow the asset (vehicle) so list the debt on the line below like noted above with real estate.

• Personal Property

  • Generally this is the “stuff” that people have that has value and is usually provided in a list by the client or opposing party.
  • If possible, lump groups of items together so that we don’t have 100 lines of personal property (good examples include tools).
  • Common things under personal property include guns, jewelry, electronics, antiques, and furniture.

• Debts

  • List each debt by name of issuing bank/lender or otherwise identifying feature, and last four of loan (when possible).
    • For Instance, Target CC x1234 (W) or Mayo Clinic Med Bills x9321 (H) or Scheels Visa CC x4309 (J)
  • Be sure to put a (H) = Husband (W) = Wife (J) Joint, which references in whose name the account is in NOT who gets it.
    • This is VERY important, don’t guess here.  because if we don’t get this right and one party accepts a debt then files bankruptcy it can be a big deal, so we always want to know if our client is “on the loan/credit card” If the client doesn’t know its ok, but we need to figure that out by asking them.
  • The notes should contain the statement from which we got the specific debt amount
    • For instance, 1/30/23 statement
  • IMPORTANT – WHEN ENTERING THE AMOUNT, be sure to put the MINUS (-) before any number so that the DA sheet recognizes it is a negative/debt.

• Totals

  • each subsection has a subtotal.
  • each subtotal is added together for each parties TOTAL
  • NOTE. you’ll see a CORRECT or a CHECK with each subtotal and with each total.
  • This is used as check to make sure we enter the numbers correctly.
  • if you see a CHECK. look at each number in Marital value and that same number is put in the Husband or Wife column.
    • this is super super important.
  • Note: the formulas are locked, you can’t change them (which is good) if you need to change them talk to Jason.

• Cash Equalization Payment.

  • most cases there will be some sort of cash equalization payment.
  • it is reflected in this Row.  note the GREEN number is who will be getting the cash (get it, getting the green?) and that same amount is subtracted from the party paying it.
  • this leads to the Toal TOTAL EACH PARTY RECEIVES, this is in a perfect world, what equal division of property will look like.

Non-Marital Items

• A n0n-marital items is something that was either brought into the marriage or given by a specific gift or bequest during the marriage.  If you list something in the Debt/Asset Sheet as “non-marital” be prepared for the question that always occurs which is “why is it non-marital and how do we prove it’s non-marital” It’s good to make notes on those non-marital claims and also to prepare clients that not all non-marital claims may be able to be proven.