Step 2: List the Assets
The next step is to list all of the assets and debts. As we have seen, this includes contingent items.
It also includes items that we might not yet know the value of. Returning to the example of where the wife filed an unresolved lawsuit for damages, while we still may not know what the value of that legal claim will prove to be, it should still be listed in the divorce. Similarly, an ongoing business should be listed, even though the parties might not have a firm grasp of its value.
There is a form used in Mississippi for listing assets and debts, known as an 8.05 form. You can read more about the 8.05 form.
How detailed should your list of assets be? Here’s an example: It is not unusual for a party to simply list “household furnishings,” with nothing more said. We have also seen lists of household furnishings that ran for several pages, down to the throw pillows and napkin rings. A good rule of thumb is to list everything with a value of at least $100 and also everything that has sentimental value, even if it has no monetary value (such as family photographs, your children’s childhood mementos, Christmas ornaments, treasured souvenirs, awards, etc.). Anything that you feel strongly should be awarded to you should be on your list.
Hidden Assets
From time to time, a spouse will decide to hide assets, often by putting them in the name and/or possession of a family member, business partner, or close friend. When the judge finds out, as they usually do, not only are the uncovered assets brought back into the “marital pot” to be divided, but the spouse risks losing substantial credibility with the judge. This loss of credibility affects everything; not only the recovery of the hidden asset, but every aspect of the case. Needless to say, if you are also fighting for custody of your children or asking for (or resisting) alimony, it does not do for the judge to decide that you’re dishonest.
We point this out to say that when identifying assets, it is unwise to hide known assets. The better practice is to list them and then explain why they should be awarded to you.
Professional Degrees/Licenses
Professional degrees/licenses are not assets. This means that the spouse of a doctor, nurse, lawyer, accountant, psychologist, etc. cannot be awarded a share of their spouse’s professional degree. This is a bit tricky, since a professional’s business is an asset (and can be divided), and income that the professional earned is also an asset that can be divided, at least to the extent that the income has been received and has not been spent. But the degree/license itself is not an asset that can be divided.
The typical fallback position of the spouse of a professional is to seek alimony in an amount based on the professional’s income. You can read more about that in our Ultimate Guide to Alimony and, in particular, about Reimbursement Alimony, for situations where one spouse put the other spouse through school.
