The overall tough economy and the recent wild swings in the stock market have made a normally difficult process, division of assets, even harder. Couples going through divorce today face more uncertainty in the value of their assets than in previous years and the uncertainty in value may be making some individuals going through divorce second guess what assets they want to bargain for. Over the next two posts we will write about some of the recent economic changes and some ways for divorcing individuals to approach the issue.

When couples divorce they can go through a division of assets process that can include the division of retirement savings, investments like stocks and savings accounts. One of the largest assets a married couple has is their home, but the recent housing bubble may have more couples going through divorce arguing about who should take on the mortgage rather than retain it. According to recent statistics, about one in five U.S. homeowners owe more on their mortgages than their homes are worth.

In addition to addressing their mortgage, some divorcing individuals may have to play catch-up when it comes to understanding what their financial picture looks like. The first step an individual should take to understand their financial picture especially in difficult financial times is to take inventory of assets and debts.

Individuals should organize and write down all sources of income, assets, expenses and debts before meeting with their divorce attorney. One of the first items that may be discussed during a meeting with a divorce attorney is the individual's retirement situation. Next time we will continue the discussion by talking about retirement accounts and timing.

Source: The Wall Street Journal, "Divorce: Who wants the house?" Kelly Greene, Oct.1, 2011