Now that I have talked about creating your net worth statement, I am going to do a series of explanations and discussions on the detailed items in a net worth statement. By the way, in a divorce, the net worth statement is known as an inventory.
Some items will take more than one blog entry and others will be quite short.
Generally, every item on your net worth statement should have a corresponding statement that has the name of the account holder, the name of the institution, the account number, the type of account, the date of the statement, and the dollar amount. For example with a bank account:
1. John Doe
2. First National Bank of Your Town
3. Account number 1234456
4. Checking account or Savings account
5. Statement Date: 12/23/08 to 01/22/09 (the date of this statement is 1/22/09)
6. $12,223.44 balance as of 1/22/09 (list this amount on the net worth statement)
Be sure to have a file folder with these statements. If you use online information, print the online statement.
Ideally, all net worth items are as of the same date. This is not always possible, but it is something to strive for. Get the dates as close to each other as possible. If you have an account for which you only get quarterly statements, then you might be stuck with an “old” balance.
Stay tuned for the details……