In every case in which equitable distribution is an issue, I will draft an equitable distribution spreadsheet in preparation for settlement negotiations, mediation, and trial. A sample spreadsheet is at the bottom of this blog. However, clients can assist in the drafting and preparation of this spreadsheet.
I prefer my spreadsheets to be simple, with only four columns. The first column, A, list the items subject to equitable distribution. The second column, B, is the value of each item—which I typically want valued as of the date of filing. The third column, C, is the value that goes to one party, which I will typically label “Husband” but could be “Wife” or “Spouse 1.” The final column, D, is the value that goes to the other party. Column C is typically the value of column B or $0.00. Column D is always a formula of the value of column B minus the value of column C.
The steps to filling out the spreadsheet are as follows:
In column A, list every significant asset and all debt either party had as of the date of filing. It should include all assets and debts either party listed on any financial declaration. One does not need to list individual household items listed but one can create a row “Household furnishings.” If an item isn’t in Column A, I don’t expect to address it in equitable distribution.
In column B, one lists the value as of the date of filing. Debts have negative value. For items that have passive changes in value between the date of filing and the date of trial, I may later add a row separating out the passive increase or decrease.
In column C, do a formula +bx (where x is the row) if it is an asset the client owns/controls or a debt the client pays and list $0.00 if it is an asset the other party controls or pays. In this spreadsheet, for the Home depot credit card #1234, the formula for column C is +b8 because that credit card is listed in row 8.
In column D do a formula +bx-cx for each row. In this spreadsheet, for the Home depot credit card #1234, the formula for column D is +b8-c8.
Next do a “Totals” row at the bottom of the completed spreadsheet and total everything in the columns. The word “Totals” goes in column A. In this spreadsheet, because the items are listed in rows 5 through 17, the formula for totals are =SUM(B5:B17) for column B, =SUM(C5:C17) for Column C, and =SUM(D5:D17) for column D.
Once one has totals for columns B, C, and D, one can do a final row titled “Amount to equalize.” In column cx (where x is the row for “Amount to equalize”), the formula would be +(bx-cx)/2 where x is the row that has the totals. In this spreadsheet, because Amount to equalize is in row 19, that formula is +(b19-c19)/2.
One can finally format columns B, C, and D to a two-digit currency format.
One should also create a computer folder “equitable distribution spreadsheet.” In that folder, one should place every document that was used to come up with the values for column B. Ideally these documents will be PDF text documents. Give these documents obvious names. An example would be “Home depot credit card #1234 statement DD-MM-YY.” The documents in this folder should be shared with one’s attorney.
Doing these steps will simplify the process of addressing equitable distribution in settlement negotiations and mediation. Further, if the case does not settle, it will ensure accurate information is available at trial to address equitable distribution.
