Check List of Short Term Financial Issues

Liquid Assets

Bank Accounts

• How much cash do they have?

• Do they have enough cash to cover expenses during the divorce?

• Is the cash earning a reasonable interest rate?

Brokerage Accounts

• Access to the account: who has the relationship with the institution? Who gets statements? Who has the passwords?

• Do you need to send a letter requiring both signatures for changes or withdrawals?

• Is there a concentrated stock position? If so should you get a stipulation to put in place reasonable protections?

• How is the portfolio structured? Is there too much risk in the portfolio considering the new circumstances?

• Is the account margined and if so for what purpose?

• Is there a 10 b 5 plan? Should you terminate status to eliminate the “related party” issue?

• What are the fees being paid for the account management and are they reasonable?

Illiquid Assets

Real estate

• Is there a mortgage? What’s the interest rate? Can it be improved to save money?

• Can the spouse who wants to keep the house afford to keep it and will they be able to refinance the loan?

• If one party is keeping the house, they should have it appraised and consider also having it inspected as they should view it as if they are buying a new house.

Equity Compensation

• Are there stock options? Check vesting schedules

• Are there RSUs? Check vesting schedules

• Get plan documents

• Get grant documents

• Evaluate formula for apportionment.
  

Limited Partnership interests

• Get subscription documents

• Evaluate capital call obligations 

• Request information be sent to both parties
  

Venture Capital/Private Equity interests

• Evaluate capital call obligations

• Request information be sent to both parties
  

Hedge funds

• Determine redemption windows for possible exits to create liquidity
  

Shares in private companies

• Founder’s shares

• QSBS issues 

• Transfer restriction issues