The balance sheet is where disclosure turns into numbers. It sets out the property pool, liabilities, superannuation and financial resources of the parties, and becomes the basis for negotiation, mediation and, if needed, the court's decision.
Done by hand, it usually means retyping figures from statements into a spreadsheet, then checking them again whenever something is disputed. Here's a more reliable way to approach it.
Start from accepted documents
Every line on the balance sheet should come from a document you've reviewed and accepted, or be clearly marked as entered by a lawyer when there's no document (for example, a liability mentioned in correspondence). That way, every figure has a source you can point to.
Classify each item
Each accepted document belongs in one section, or none:
| Document | Usually goes in |
|---|---|
| Bank accounts, real property, shares, vehicles, business interests | Assets |
| Credit cards, mortgages, personal and business loans | Liabilities |
| Superannuation statements | Superannuation |
| Expected inheritances, interests in trusts | Financial resources |
| Payslips, tax returns, insurance policies | Not a balance sheet line |
Classification is a judgement call in some matters. An interest in a family trust may be treated as an asset in one matter and a financial resource in another. Make the decision deliberately and record it.
Record ownership
For each line, record whose it is: the client's alone, the other party's alone, or joint. Joint items may be held with the other party or with someone else, such as a parent. Ownership determines the column the figure sits in, and it matters later when you model who keeps what.
Value as at the right date
Use values that are current, and note the date of each. A superannuation statement from last financial year, a bank balance from last week and a real estate appraisal from three months ago may all appear on the same balance sheet. Showing the date beside each value makes it obvious which ones need updating.
Keep the other side's figures separate until checked
The other side's disclosure belongs on the balance sheet, but only once you've checked it. Until then, show their figures as needing review and leave them out of the totals. When you check a figure against its statement and it matches, approve it and it counts.
Show totals with and without super
Superannuation is often dealt with separately from other property. Showing the net pool both excluding and including superannuation helps the discussion in most matters.
Model outcomes separately
Once the pool is settled, the questions change: what percentage split is proposed, who keeps which assets and debts, and what cash adjustment balances it. Keep this modelling separate from the balance sheet itself, save the scenarios you discuss, and include add-backs where relevant, such as funds one party spent after separation.
Use the court's layout when you need it
The Federal Circuit and Family Court of Australia publishes a Balance Sheet form with a standard layout of assets, liabilities, superannuation and financial resources, with columns for the applicant's and respondent's values. Producing your balance sheet in that layout makes it easy to file or exchange when required.
How Matter Folio handles it
In Matter Folio, accepted documents go onto the balance sheet automatically, with a sensible classification you can change and the ownership you set during review. The other side's entries appear as Needs review until you approve them. Every line links to its document, totals show the pool with and without super, and you can model outcomes, save scenarios, and download the balance sheet in the court's layout in Word or Excel. See the balance sheet.