Financial Disclosure in Divorce
Financial disclosure statements are often a big part of divorce cases in all matters concerning property and debt division, child support, family support or spousal maintenance. Both parties will be required to file with the court and exchange with each other, a financial disclosure statement or affidavit disclosing all of their assets and liabilities.
Both sides will need to supply accurate financial information before they can agree on the conclusions of asset values, debt amounts and income amounts. If one spouse will not voluntarily provide the required information, there are formal court mechanisms that the other party can employ to obtain missing financial records but withholding information is generally not considered an advisable tactic and one that can easily backfire in front of the judge in court.
A typical divorce case may require the gathering of several different types of financial information including appraisals of real property, lists of personal property and data on any retirement accounts or other financial assets. Most divorce attorneys agree that full disclosure is the best and least problematic approach to court ordered financial disclosure. Undisclosed information can lead to later discoveries and leave a spouse liable for subsequent damages and penalties. Better to comply with full disclosure and deal with any problem areas or contested issues up front while negotiation is still a possibility.
Common documents necessary for financial disclosure in divorce:
Two years of state and federal individual income tax returns.
Two years’ state and federal business income tax returns
Pay check stubs for the last three months.
Documentation of the cost of your insurance (medical, dental, eye).
Statements for bank accounts, retirement accounts, and military benefits.
Deeds for all real property.
Recent appraisals of real property.
Trust documents establishing inheritance.
Loan balance and the current value of life insurance.
List of any savings bonds.
List of vehicles (including boats and recreation vehicles).
Bankruptcy and discharge information.
Current credit card statements.