A financial affidavit is one of the most important documents required during a divorce case. This statement ensures that both parties have fully disclosed their assets and debts to ensure an equitable distribution of both. If you are preparing for the termination of your marriage and have questions or concerns regarding the financial affidavit or other documentation, reach out to a Suffolk County divorce attorney today.
What is a Financial Affidavit?
A financial affidavit is a signed and sworn statement that details an individual’s financial situation. It includes complete and comprehensive information about your income, expenses, assets, and debts to give a court a clear picture of your entire financial situation.
The following components are included in a financial affidavit.
- Income: You will need to include evidence of your wages, salaries, bonuses, income from self-employment, child support you receive, or any other source of income you have to give a clear picture of the money you make and your earning capacity.
- Expenses: The affidavit will also contain detailed information about your monthly living expenses. This information can cover everything from mortgage payments, car payments, student loan payments, rent, utilities, groceries, childcare and related costs, insurance, to any other regular expenses.
- Assets: Listed in the affidavit will be all properties, investments, savings and bank accounts, retirement funds, cars, boats, stocks, jewelry, artwork, or any other items of value.
- Debts: Any debts or financial obligations you have also need to be listed on the document. This can include mortgages, credit card balances, student loans, auto loans, personal loans, and other liabilities.
- Other financial information: All financial information related to your life must be included in the statement. Additional information could include trusts, investments, businesses, tax deductions, children, transportation, education, professional licenses, inheritance, and more.
Why are Financial Affidavits Relevant in Divorce Cases?
Financial affidavits are some of the most important documents involved in a divorce case. They serve several important roles but overall are used to ensure the court has all relevant information required to make important decisions regarding financial obligations and splits during a divorce.
Affidavits ensure transparency between spouses. Divorce is often emotionally stressful and volatile, and without full financial disclosure being required from both parties, one or both spouses may attempt to conceal assets or income in an attempt to prevent them from being subject to property division. The use of a financial affidavit helps reduce the risk of lying or hiding assets.
The division of assets and debts is one of the most important but contentious topics in any divorce. When both parties provide an honest and complete financial affidavit, it ensures that the court has a clear picture of all marital assets and liabilities which allows both spouses to receive their fair share during equitable distribution. Without the use of an affidavit, it would be difficult for the court to determine how assets and debts should be allocated fairly.
Financial affidavits are one of many important and required documents during the divorce process. Consult with an experienced attorney for more information and legal advice during your case.
