One of the most important things during a divorce is transparency and honesty. There is a variety of topics that must be addressed and handled before the final decree can be issued by the judge. In order for the court to make fair decisions on all relevant issues, both spouses must comply with total and accurate financial disclosure. If you are filing for divorce and have questions or concerns about the process, it is important that you are adequately represented. Reach out to an experienced Suffolk County divorce lawyer at Peter V. Mandi & Associates, Inc. to secure skilled legal counsel today.

What is Financial Disclosure?

Financial disclosure is the formal process of two or more parties exchanging complete and accurate information about their financial situations. When financial disclosure is required, it involves every piece of information related to an individual or entity’s financial standing. This includes sources of income, expenses, assets, debts, and more. Below are examples of relevant information that must be included during financial disclosure.

  • Income: Wages, salaries, bonuses, commissions, investments, unemployment benefits, and rental income
  • Expenses: Monthly expenses like rent, mortgage payments, utilities, transportation, groceries, healthcare, childcare, and clothing
  • Assets: Property and real estate, vehicles, bank accounts, retirement accounts, investments, business interests, and valuable personal property like jewelry and artwork
  • Debts: Personal loans, mortgages, car loans, credit card debt, and student loans

Financial disclosure is often required in legal proceedings and other contexts, like business mergers, government employee reviews, or divorces.

During a divorce, both spouses will be required to provide an assortment of documents and paperwork detailing the above financial information. This often includes sworn affidavits, bank statements, pay stubs, loan documents, credit reports, property deeds and appraisals, receipts, and more. Every detail of each spouse’s economic situation must be included.

What is the Importance of Financial Disclosure in My NY Divorce?

Now that the definition of financial disclosure has been established, it is important to understand its role and why it is so crucial that both spouses are fully transparent about their economic situation.

First, total disclosure ensures that both parties have a complete and clear understanding of their shared and separate finances. This is crucial for a fair distribution of property and the determination of financial support. New York is an equitable distribution state, which means that marital property is divided based on what is fair and equitable, not necessarily a 50/50 split. A court can only determine an equitable distribution of assets if there is a total understanding of each spouse’s economic standing.

The same can be said for spousal and child support. Financial support obligations are an important part of divorce proceedings as they ensure that a shared minor child or lower-earning spouse is not disproportionately disadvantaged by the relationship ending.

Perhaps most importantly, participating in financial disclosure ensures that you are in compliance with state laws. Failing to accurately disclose your economic situation can lead to criminal repercussions. To learn more and secure skilled legal representation, reach out to a knowledgeable attorney today.