SHORT ANSWER · DIVORCE
How do you trace separate property in a divorce?
To trace separate property in a divorce, start at its source, such as an inheritance deposit, and follow it through every statement until it reaches what exists today. Where it mixed with marital money, apply a tracing method to the account. Every month has to be produced: one missing statement breaks the chain, as April does in Matter 25-117.
THE STEPS
What are the steps?
Source, path, method, schedule. Choosing a tool? Which tools prepare statements for tracing is covered in the best divorce forensic accounting software.
- 1
Document the source
The record that shows the money was separate: an estate letter or a statement from before the marriage.
- 2
Collect every statement on the path
Each account the money passed through, from the deposit to today. Prove each one adds up to its printed closing.
- 3
Close the gaps
In Matter 25-117, checking closes March at 18,240.55 and opens May at 21,905.10. Until April is produced, the 3,664.55 between them can’t be explained.
- 4
Apply a tracing method where funds mixed
Common approaches include the lowest intermediate balance rule and direct tracing of specific deposits and payments. Which one fits depends on the state and the facts.
- 5
Build the schedule
A month-by-month schedule showing the separate balance, with each figure tied to a statement anyone can check.
ZeraBooks builds the workflow around your matters and your template for free. No development charge, whether it’s a forensic department or one person.
WHO DOES IT
Who usually does the tracing?
Often a forensic accountant; see what does a forensic accountant do in a divorce? Mixed accounts are the hard part, which is what is commingling in a divorce? in practice.
ZeraBooks handles the record: it proves each statement, flags missing months and pairs check images to their lines. Choosing the method and presenting it stays with the expert and the attorney. This isn’t legal advice.
What if the old statements are gone?
Banks can often reproduce them on request. Without them, the trace may rest on other records, which is weaker.
Is one tracing method always used?
No. Courts and states differ, and experts choose the method that fits the account and the facts.
Does tracing cover investment accounts?
Yes. Brokerage statements are part of the path too, including the months inside a quarterly statement.
FREE CUSTOM BUILD
Every month on the path,
proven.
ZeraBooks proves each produced statement and flags any month missing from the trail.