In any divorce in New Mexico, there comes a time when you have to deal with finances. In this state’s family law, there is a rule known as 1-123 that requires divorcing couples to disclose their finances in detail on a forms known as the “Schedule of Asset and Debts.” Keep reading to learn more about these schedules and some hints for surviving their compilation.
Why you need it
The financial schedule is required by law in divorce because it paints a full picture of the marriage’s assets and debts. This can help you and your spouse reach an agreement that is fair to both parties. Having your finances spelled out in black and white can also speed along the settlement process. Money and property tend to be sticky subjects when it comes to divorce, so the less confusion about these areas, the better.
What to expect
What to expectThis forms are exactly what they sound like: a listing of all your income, assets and debts. On them, you will need to put all the assets you own in your name alone and all the joint assets you and your spouse own, like the family home. Debts you owe on your own and with your spouse are also included, along with your income from your job or self-employment. In addition to all that, you’ll need a full list of your expenses and passive investments, which are things you earn money from that you don’t run on a day-to-day basis. If you’re in a partnership that produces money for you, for example, but you act just as an investor, that would be considered passive.
Making your statement more manageable
It can seem overwhelming at first to have to break down your complete financial picture in detail. To make it easier and less likely that you will miss something, start off with a list of three tasks related to the statement. For example, you could put that you need the last mortgage bill, a copy of the deed to the family home and an estimate of the family home’s current value. Once you get all three things done, make a list of another three things to accomplish and get it done. Repeat this process until you have all that you need. If you find yourself getting frustrated, return to the first item on your current list and start again. To help prioritize, you can jot down the next three things in line that you’re sure are the most important, and decide on a specific time of day to work on getting those items handled. Stick to those times to ensure your statement is done in a timely manner.
Depending on your situation, your schedule could get pretty long. To keep things easier to manage, you can group similar items together on your three-goal list. For example, things related to your house could be one list, while things related to your retirement accounts could be another. Tweak your approach until you find the most effective list-making format for you. By the time you are done, you will have a comprehensive schedule that is accurate.
Accuracy is key
Your financial statement must be accurate. If you leave out some debts, for example, you may find yourself struggling later. If you miss assets, it could cause problems during the settlement process, especially if your spouse believes you were hiding the assets on purpose. Our staff can help you to determine what you need to provide and can help you in organizing the information as well.
Speak to an experienced family law attorney about your New Mexico divorce today. A legal professional can help you with your statement questions and work to ensure you are being as complete as possible.