How do we include Disposed Assets, Addbacks or Cash Payments in FamilyProperty’s interactive Balance Sheet?
1. Disposed Assets
When you are working in your client’s Balance Sheet, scroll down the bottom to the section labelled “Disposed Assets”, then click on “Add”.
From here, a Smart Form will expand where you can enter specific details about the disposed asset or add back including who disposed of it, a description of what was disposed of, when and how the item was disposed of and the value. Don’t forget to click “Save”.
If you then wish to include the Disposed Asset into your FamilyProperty Balance Sheet (which will then be taken into account in the calculations for the property settlement), click on the item and scroll down to “Other Actions”. From there click on “Change to an Asset”, then click “Save”.
2. Addbacks
In simple terms, an addback refers to an item or asset that once existed in the property pool, but for some reason no longer exists. It may be that a party has unilaterally spent funds from a joint bank account post-separation or perhaps a party has sold a motor vehicle. The asset or item itself can no longer be included in the property pool per se, but the amount for that particular asset or item can be "added back" into the figures and calculations.
To highlight an asset as an Addback:
- Click on the item in the balance to open the form, or click the "Add" button and select Asset, if the item isn't in the balance sheet as yet, then;
- Tick the "Asset is an addback" box. Save
This item will be clearly shown as an Addback in the FamilyProperty balance sheet as well as any downloaded reports.
3. Cash Payments
It is quite common for a party in a property settlement to secure funding from a third party lender to “pay out” the other party.
In this scenario, you need to add in an external cash payment which is coming from outside of the property pool, into an offer of settlement in a Balance Sheet.
See the steps below:
- Navigate to ‘’Add” in the top right hand corner of your screen and scroll down to ‘’Cash Payment’’.
- A pop-up screen will appear where you can capture additional information relating to the cash payment such as: a description of the funds; who is receiving the funds; and the amount being paid.
- Click Add.
The cash payment will be added as an Asset, and also deducted as a Liability in the property pool, giving you an equalising position as shown in the below screenshot.