HOW TO DIVIDE ASSETS AND DEBTS IN DIVORCE

Domestic Relations Affidavits and Child Support Worksheets

Before the trial begins, a few documents must be exchanged between the parties, displaying to each spouse how the other formulated his or her proposed property division and/or support obligations. According to Kansas Supreme Court Rule 139, each spouse shall prepare a Domestic Relations Affidavit (“DRA”) and give the documents to the opposing party before the trial. If child support is a concern, Rule 139 also states that a Child Support Worksheet (CSW) must be prepared and exchanged.

Domestic Relations Affidavit

Both parties must prepare a domestic relations affidavit that includes information about income, assets, and debts. This document is a sworn statement and must be notarized appropriately before it is exchanged with the other spouse. The document will include all essential information about each spouse (name, address, etc.) and the children. The spouses should also disclose whether they have had any prior marriages and whether they have received or paid any support obligations arising from those marriages. The affidavit then discusses debts and assets.

Income

After providing the above data in their DRA, the spouses need to disclose their own salaries. A court-endorsed DRA will outline how salary data is to be accounted for. This incorporates detailing gross income, federal and state withholdings, and exemptions. Independently employed parties should state exact data about the income and deductions of their business. Each spouse typically provides their own salary data; however, if possible, a spouse can also give the other party’s income data. Such data may not be fully known, but the numbers given must be as close as possible to the actual figures. Furthermore, any support received from others by either party should be represented in the sworn statement.

Assets

Next, the affidavit requires the spouses to disclose their known assets. Spouses must disclose the balances in all accounts (bank, savings, retirement, etc.) and cash on hand. The amounts and ownership of those accounts are also revealed in the affidavit. This can lead to disagreement between spouses in some cases. Spouses sometimes quarrel over who owns which account, but luckily, the court attaches little significance to the name on the account. What is more important is the time span in which the cash in the account was earned.

Spouses' property is also an asset that must be disclosed. Whether it is real estate or automobiles, everything must be disclosed, including the value and ownership of the properties. It does not matter whether one spouse owns it or both own it together; it must be included in the affidavit. Lastly, each party will have to disclose information about any separate personal property acquired before marriage, after separation, as a gift, or through inheritance. Although this type of property is typically not divided, the court may consider it in deciding whether to order alimony and how to divide the marital property.

Debts

Next, debts attributed to the spouses are to be included. The spouses must provide accurate information about the creditor, the balance of the debt, and when the debt was incurred. Whether the debt is held by one spouse or jointly by both, the information must be reported on the DRA. Even if the debt was accrued before the marriage, that information must be disclosed. Debts incurred before the marriage will typically be attributed to the spouse who initially incurred them, but the court considers this when deciding property division and support obligations. Mortgages and automobile loans must also be reported.

Additionally, everyday costs should likewise be illustrated in the DRA. These everyday costs cover a wide range of expenses. These expenses should include rent, food, childcare, and medical costs. Insurance, utilities, and property taxes are also included in the DRA. It also covers costs that one might not expect, such as phone bills, cable, cosmetic expenses, automobile maintenance, and monthly subscriptions.

Child Support Worksheet

If child support is a concern, the parties must complete a CSW. This worksheet will lay out basic information about the number of children and their age, as well as what each side thinks the child support should be.

The worksheet calculates an amount based on income and other relevant expenses. The fundamental data used in the formula include each spouse's gross income, any other child support obligations, and relevant monthly expenses attributable to the children. Insurance expenses and child care costs are also considered relevant expenses.

Unique factors can also be reported in the CSW and may affect the child support owed or received. These factors may include costs associated with long-distance parenting time. For instance, if one spouse lives a great distance from the children, he or she may incur expenses to see them. Each party's financial status, along with income tax considerations, will be taken into account when determining child support.