Handling Joint Assets and Debt (How to Split Them Among the Couple)
Snap Projections offers two methods for handling joint assets and debt within scenarios. The first method automatically does the math for you and equally allocates the assets/debt between spouses. The second method is primarily used for splitting assets or debts using a different percentage than 50/50.
In this article:
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Select that the asset/debt is jointly owned when entering the details
When you classify a real asset or debt as jointly owned, Snap Projections will automatically calculate 50% of the total that you enter, and allocate it evenly between the client and spouse.
To do this, select Yes under the Joint column for the asset or debt that you want to split.
Example 1: Joint ownership of a Home
Example 2: Joint Debts
Example 3: Joint Non-Registered Assets
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Enter a portion of the asset/debt for each spouse individually
Enter a joint asset under a client and then click the Copy Asset green arrow icon. The asset will be copied to the spouse automatically. Use this for non-registered accounts that are shared between the client and spouse (ex. a joint savings account) and where the spouses have not contributed equally to this asset in the past. Adjust the amount of the asset for each spouse, depending on the percentage "owned" by each spouse. The sum of the amount entered for each spouse is the total asset value.
For debts that are jointly owned in reality but have payments made by only one spouse, it may make the most sense to classify it as individually owned in the projections. In an example scenario where one spouse has little to no income, the software will still expect that spouse to make equal debt payments. This may create a shortfall for that spouse, or cause a withdrawal from their Financial Assets to cover the payments.