Divorce Financial Checklist

May 5, 2025

Divorce inevitably involves untangling your finances, and being organized from the outset can save you time, stress, and potential disputes. Gathering your financial information is a crucial first step, whether you’re pursuing an uncontested, negotiated, or collaborative divorce. This divorce financial checklist will guide you through the process of collecting the necessary documents for your Illinois divorce.

 

Why Gathering Financial Information Is Essential

In Illinois, as in most states, the division of marital property and decisions about support payments (if applicable) depend on a clear understanding of your financial situation. Accurate and complete financial disclosure is vital for:

  • Fair Property Division: To ensure that marital assets and debts are divided equitably.

 

  • Accurate Support Calculations: To determine the appropriate amount of child support and spousal maintenance (if any).

 

  • Efficient Negotiations: To facilitate productive discussions and settlement negotiations.

 

  • Avoiding Disputes: To minimize the risk of disagreements and legal battles over financial matters.

Your Divorce Financial Information Checklist

Here’s a comprehensive checklist to help you gather the documents you’ll need:

I. Income and Employment

  1. Pay Stubs: Gather your most recent pay stubs from all sources of income.
  2. W-2s: Collect your W-2 forms for the past several years.
  3. 1099s: If you’re self-employed or an independent contractor, gather your 1099 forms.
  4. Employment Contracts: If you have an employment contract, collect a copy.
  5. Business Records: If you own a business, gather relevant financial records, such as profit and loss statements, balance sheets, and tax returns.

 

II. Bank Accounts and Investments

  1. Bank Statements: Collect statements for all checking, savings, and money market accounts for the past several months.
  2. Investment Account Statements: Gather statements for brokerage accounts, retirement accounts (401(k), IRA), and any other investment holdings.
  3. CDs and Money Market Accounts: Collect documentation for any certificates of deposit or money market accounts.

 

III. Real Estate

  1. Deeds: Obtain copies of the deeds for any real estate you own.
  2. Mortgage Statements: Gather your most recent mortgage statements.
  3. Property Tax Bills: Collect your property tax bills.
  4. Appraisals: If you have recent appraisals of your property, collect copies.

 

IV. Retirement Accounts

  1. 401(k) Statements: Gather your most recent 401(k) statements.
  2. IRA Statements: Collect statements for any IRA accounts.
  3. Pension Information: Obtain information about any pension plans.
  4. Other Investments: obtain the most recent account statement

V. Debts and Liabilities

  1. Credit Card Statements: Collect your most recent credit card statements.
  2. Loan Documents: Gather documentation for any loans, such as car loans, student loans, or personal loans.
  3. Mortgage Documents: Collect your mortgage documents.

VI. Tax Returns

  1. Federal and State Tax Returns: Collect your federal and state tax returns for the past several years.
  2. Tax bills: if you owe taxes

 

Tips for Organizing Your Financial Information

  1. Create a System: Use folders, binders, or digital files to organize your documents logically.
  2. Make Copies: Make copies of all important documents.
  3. Be Thorough: Don’t omit any information, even if it seems insignificant.
  4. Seek Assistance: If you’re unsure about what documents to gather, don’t hesitate to seek guidance from an attorney or financial advisor.

 

Preparing for divorce can feel overwhelming, but taking control of your financial information is a positive step toward a more secure future.

FAQ about Your Divorce Financial Checklist

Q1: Why is it so important to gather all this financial information when I’m getting a divorce?

 

A: Gathering complete and accurate financial information is essential to ensure fairness and accuracy in your divorce. In Illinois, it helps you and your ex make informed decisions about how to divide property and determine support obligations. This transparency can also streamline negotiations and reduce the chances of disputes.

 

Q2: What’s the difference between “marital property” and “separate property,” and how does that affect what financial documents I need?

A: In Illinois, “marital property” generally refers to assets and debts acquired during the marriage, and it’s subject to division. “Separate property” is typically what you owned before the marriage or received as a gift or inheritance. While all financial documents are relevant, knowing this distinction helps you identify which assets and debts are subject to division.

 

Q3: I’m overwhelmed by the checklist! Do I really need all of those documents?

A: While the checklist is comprehensive, the specific documents you’ll need most will depend on your situation. However, gathering as much information as possible upfront is always a good idea. It’s better to have more information than not enough.

 

Q4: What should I do if I’m having trouble locating some of the financial documents?

A: Start by checking common places like your personal files, online accounts, and with your bank or financial institutions. If you still cannot find the information, ask for help

Q5: Do I have to bring the documents to your office?

A: Not if your divorce is uncontested, but you will need information from them to give me the information I need to create your paperwork. If I represent you for a collaborative divorce, the answer might be yes.

 

If you’re in the Metro East and need assistance navigating the financial aspects of divorce, please reach out to my office. We can discuss your situation and explore how to achieve a fair and equitable resolution.

 

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. It is essential to consult with an attorney to discuss your specific situation and legal options.