Your Family's Financial Plan: Are You Prepared in Case of a Family Catastrophe? (Part Three)
Over the last few months, I have been pleased to publish “Your Family’s Financial Plan: Are You Prepared in Case of a Family Catastrophe?” by Aimee Waite, a Financial Advisor with Raymond James & Associates. If you missed them, please be sure to read part one and part two. Today, I am pleased to bring you the final installment of this series. I would like to once again thank Aimee for sharing this information with you, and I hope that you find it helpful.
Part 3: What to do if your spouse, who is responsible for the family finances, is unwilling to discuss specifics and answer your questions.
Knowing specifics about your family’s financial situation is critical, especially if there’s reason to believe you are headed for divorce. Most importantly you should know the details of your family’s income, expenses, assets, liabilities, the location of important documents, user names & passwords for online accounts, account numbers and retirement benefits in place. In most cases, all you need to do is ask your spouse for this information and he/she will provide it. If they are not willing to comply, you’ll need to gather the information on your own. Here are some helpful tips:
Part 3: What to do if your spouse, who is responsible for the family finances, is unwilling to discuss specifics and answer your questions.
Knowing specifics about your family’s financial situation is critical, especially if there’s reason to believe you are headed for divorce. Most importantly you should know the details of your family’s income, expenses, assets, liabilities, the location of important documents, user names & passwords for online accounts, account numbers and retirement benefits in place. In most cases, all you need to do is ask your spouse for this information and he/she will provide it. If they are not willing to comply, you’ll need to gather the information on your own. Here are some helpful tips:
- Start with your tax return. Before you sign the upcoming year’s, make a copy of it and ask questions about it. Also locate past tax returns and keep your own copies. If you don’t know where they are kept, you can contact your CPA or the IRS to request copies. If contacting the IRS, you’ll need to fill out Form 4506. The following information can be found on the tax return:
- Annual income including salary, bonuses, commissions, etc.
- Dividends & interest received from investments.
- Income received from any side business such as rental or partnership income.
- Gains and losses from assets sold during the year.
- Itemized deductions.
- If your spouse owns his/her own business, the financial statements from the business are a source of information. Specifically, the company’s profit & loss statement and balance sheet will be helpful.
- Make copies of statements that come in the mail. Your bank statement will reveal information about income and expenses paid on a regular basis. Your brokerage statement will provide information about assets that you own and possibly retirement planning.
- You may want to hire your own professionals to provide advice and expertise, especially if you are headed towards divorce and don’t want to use the same professionals as your spouse. It will be helpful to seek advice from an attorney, financial advisor and CPA.
