Financial Statement Form - Individual
Understanding this form
The Financial Statement Form - Individual is a legal document used to detail an individual's financial situation. It serves to outline an individual's assets and liabilities, allowing for a clear analysis of their net worth. This form is not meant for businesses, making it distinct from corporate financial statements.
Key parts of this document
- Current assets: Lists cash, savings, investments, and other liquid assets.
- Current liabilities: Includes debts and obligations due within one year.
- Deferred assets: Captures long-term assets that cannot be quickly converted into cash.
- Net worth: Calculates the difference between total assets and total liabilities, providing an overview of financial health.
When to use this document
This form is useful during various financial assessments, such as applying for loans, seeking financial aid, undergoing divorce proceedings, or when filing for bankruptcy. It is essential for presenting a comprehensive view of one's financial standing.
Who can use this document
This form is intended for:
- Individuals applying for personal loans or credit.
- People seeking financial assistance or grants.
- Individuals engaged in divorce or separation proceedings.
- Those preparing for bankruptcy filings.
Instructions for completing this form
- Gather financial documents, including bank statements, investment accounts, and loan agreements.
- Fill in the current assets section with accurate values of all liquid assets.
- Complete the current liabilities section by listing all debts due within the year.
- Specify the deferred assets that may take longer to sell or convert into cash.
- Calculate your net worth by subtracting total liabilities from total assets.
- Sign and date the form when finished, ensuring all information is accurate.
Notarization requirements for this form
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Common mistakes
- Forgetting to include all liabilities, resulting in an inaccurate net worth.
- Providing outdated values for assets, which can misrepresent financial status.
- Not separating personal assets from business assets, if applicable.
- Failing to sign or date the form properly, causing potential processing issues.
Why use this form online
- Convenience: Downloadable and accessible anytime.
- Editability: Fill in the form digitally to ensure accuracy and clarity.
- Reliability: Prepared by licensed attorneys, providing peace of mind regarding legal validity.
Quick recap
- The Financial Statement Form - Individual is essential for detailing personal finance.
- Accurate information is crucial for the integrity of the financial analysis.
- Preparation with necessary documents can streamline the completion process.
Form popularity
FAQ
The two types of personal financial statements are the personal cash flow statement and the personal balance sheet.
Step 1: Fill in the identifying business information in Section I. Step 2: Complete questions 1 through 11 in Section I. Step 3: Complete questions 12 through 16 in Section I. Step 4: Review Section I and sign and date at the bottom of page 3 of the form.
For example, if you have a house and a car with a value of $100,000, and you have a mortgage and car loan for $75,000, your net worth is $25,000. Net worth for an individual is similar to owner's equity for a business. Therefore, a personal financial statement is similar to a business's balance sheet.
Fill in basic business information. Add information about your assets. Add information about your liabilities. Complete section 1 for your source of income and contingent liabilities. Complete section 2 with your notes payable to banks and others. Complete section 3 with your stocks and bonds.
Fill in basic business information. Add information about your assets. Add information about your liabilities. Complete section 1 for your source of income and contingent liabilities. Complete section 2 with your notes payable to banks and others. Complete section 3 with your stocks and bonds.
Create a spreadsheet that has a section for assets and one for liabilities. List your assets and their worth. List every liability as well as its worth. Determine the total of both assets and liabilities. Determine your net worth.
