Asset/Liability Disclosure – Transparency Rules!

Consensus Point MediationThere is much talk of full disclosure, or “transparency,” on issues related to foreign policy, government spending and the like. Transparency is an important quality in Divorce Mediation, as well – transparency between spouses is an important trust builder. It’s perhaps best illustrated in connection with asset and liability disclosure, a critical component of the budgeting process – but is also important to the whole Mediation decision making process.

In Mediation, a couple has remarkable latitude with which to shape their Separation Agreement. This may involve asset trade-offs and other agreements (such as who is able to claim a dependency deduction) all done with the objective of arriving at an Agreement that is fair in the eyes of the couple. Transparency – full disclosure – is important to this process.

Decisions regarding the distribution of assets and liabilities will also have a direct impact on budget preparation. Indeed, the new budgets can’t really be completed until assets and liabilities are accounted for. The Mediator helps, as with other parts of the budgetary process, by providing forms which help identify a wide variety of elements that may be assets or liabilities. Sometimes, identification of assets isn’t enough; the assets must be valued. Depending on the funds or property rights involved, it may be easy for a couple to agree to a valuation based on data at hand and/or factoring some additional data into the discussions.

Some assets are more complicated and require an expert to establish a fair and accurate value. Experts provide information that allows the couple to make informed decisions regarding the assets. Experts can include art appraisers, real estate experts and/or appraisers, and forensic accountants. The Mediator can provide information on the types of experts needed to valuate these different kinds of assets. The Mediator will also help in guiding discussions over valuation and distribution, once expert reports are received.

We invite any couple who wishes to learn more about the mediation process to call for a no fee – no commitment consultation where we will have an opportunity to describe the process to you and you will have an opportunity to ask us any questions you may have regarding the mediation process and its suitability to your particular circumstances.

Feel free to ask any questions, to comment, or to request more information in the Comments Box below. Also, please feel free to forward this blog to anyone you know who might be interested in its topic.

Sanford (Sandy) Balick, Attorney & Mediator, NY Sandy Balick signature
Sanford E. Balick, Esq.
Founder & Principal Mediator
Consensus Point Mediation, LLC.

Phone: (646) 340-3434
Email: ConsensusPointLLC@gmail.com
www.ConsensusPointmediation.com

 

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