A statement of net worth is a document that summarizes your financial position by listing your assets, liabilities, and overall net worth. Writing one helps you understand your financial health, plan for future goals, or meet requirements for loans, legal cases, or business transactions.
What Is a Statement of Net Worth?
A statement of net worth is a financial snapshot showing the difference between what you own (assets) and what you owe (liabilities). The formula is simple: Net Worth = Total Assets – Total Liabilities
For personal use, a simple statement may suffice. For official purposes, such as court submissions, immigration sponsorship, or business transactions, the statement should be reviewed or certified by a Certified Public Accountant (CPA).
Step 1: List Your Assets
Assets are everything you own with monetary value. Common asset categories include:
- Cash and bank accounts
- Investments (stocks, bonds, mutual funds)
- Retirement accounts (401(k), IRA)
- Real estate properties
- Vehicles and personal property
- Business ownership or equity
- Collectibles, art, and other valuable items
Record the current value for each asset. Include supporting documents like bank statements, investment account summaries, or appraisals for real estate or valuables.
Step 2: List Your Liabilities
Liabilities are debts or financial obligations. Common liabilities include:
- Mortgages
- Car loans
- Credit card balances
- Student loans
- Personal loans or lines of credit
- Taxes owed
Document each liability carefully with statements or account balances to ensure accurate calculations.
Step 3: Calculate Your Net Worth
Subtract total liabilities from total assets to determine your net worth. Include a clear summary line in your statement: Net Worth = Total Assets – Total Liabilities
You can optionally add notes explaining assumptions, valuations, or non-liquid assets.
Step 4: Review and Certify (Optional but Recommended)
For personal tracking, reviewing your entries for accuracy is enough.
For official use, have a CPA or financial professional certify the statement to ensure credibility for lenders, courts, or regulatory agencies.
Tips for a Professional Statement
- Use a template for consistency and clarity.
- Keep supporting documents organized.
- Update your statement regularly to reflect financial changes.
- Maintain a clean, readable format with tables or bullet points.
Need Help Writing a Certified Statement of Net Worth?
Dimov Tax prepares CPA-certified net worth statements for individuals, business owners, and high-net-worth clients.
Contact us today to create an accurate, official, and court-ready statement.