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Divorce Checklist: 15 Dos And Don’ts In 2024

Updated: Mar 17, 2023, 3:02am

Table of Contents

Divorce checklist: dos, frequently asked questions.

Divorce can be complicated and stressful, but this divorce checklist of dos and don’ts helps you to make the right decisions when ending your marriage.

Here are some of the crucial steps you should take when you are ending your marriage. Check these off your divorce checklist to protect your rights and make the dissolution of your marriage go as smoothly as possible

1. Learn Your State’s Requirements for Filing for Divorce

Most states have residency requirements, which means you need to file for divorce where you or your spouse live. You may need to have lived in the state for a set period of time before filing for divorce, such as six months.

Many states also have other requirements to meet before you divorce, such as being separated for a certain length of time. You should learn these rules early on so if you must live separately for a period of time, you can get started on that process.

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2. Understand State Laws Governing Property Division and Support

States have default rules that apply if you and your spouse cannot agree on the issues raised by ending your marriage.

For example, community property states divide marital property (and marital debt) 50/50 while equitable distribution states divide marital property and debt fairly but not necessarily equally. And all states make custody decisions based on what is in the best interests of the child. All states determine child support based on set standards.

You should know these rules because they help you understand what to expect as far as property, custody and support after a divorce. They can also guide you in the right direction when you are trying to negotiate on these issues outside of court so you can pursue an uncontested divorce.

3. Hire a Lawyer ASAP

You and your spouse should each have your own family law attorney representing you. Your lawyer protects your rights during divorce and helps ensure you make decisions based on what is best for you over the long-term and which optimize your rights.

4. Decide What Kind of Divorce Process You Want

You can opt for an uncontested or a contested divorce when you end your marriage. With a contested divorce, issues are decided by the court. With an uncontested divorce, you and your spouse agree on grounds for divorce and draft your own settlement addressing all key issues.

An uncontested divorce is cheaper, easier, less stressful and can result in a settlement agreement that makes everyone happier. When possible, aim for this. But if your spouse isn’t cooperative or if there was abuse in the marriage and you don’t feel comfortable negotiating, then a contested divorce may be your only option.

5. Reevaluate Your Financial Situation

You may need to make major lifestyle changes when you no longer have two incomes in one household. The sooner you start to make these lifestyle changes, the better. You also want to be sure you aren’t trying to cling to property you can no longer afford. Keeping an expensive house or expensive car (that come with big monthly payments) could end up being a bad thing not a good thing.

6. Aim to Refinance Debts

Marital debts should be divided during divorce proceedings. Unfortunately, if the court orders your spouse to pay a joint debt and your spouse doesn’t follow through, creditors could still come after you if you are the co-borrower. As a result, whenever possible you should try to ensure the spouse who is given responsibility for a particular debt refinances it into their name alone.

7. Think Long-Term

Don’t just consider legal issues that are relevant right now. You should think about what will arise in the future. For example, you want to get your fair share of retirement accounts or pension money and address who will pay for college for the kids even if that’s many years away.

8. Take Care of Your Mental Health

Divorce can be stressful. Make sure you practice self-care and grieve properly for the end of your marriage. Talk to a therapist or join support groups if you need to in order to be able to move forward towards your new life with a positive attitude. There are also some things you do not want to do during the divorce process. Here are some don’ts.

Divorce Checklist: Don’ts

1. don’t use the divorce to try to punish your spouse.

If you are angry about the divorce, it may be tempting to try to make the proceedings as miserable as possible for your spouse. Avoid this. If you refuse to compromise or make the process difficult, it will be more expensive and stressful for both of you and you are likely to end up less happy with the divorce settlement in the end.

2. Don’t Sign Anything Without Knowing Your Rights

You don’t want to be bullied or pushed into negotiating a divorce settlement that isn’t favorable for you. You don’t have to give up support, custody of your kids or property that you are entitled to just to make the divorce process work. The decisions you make affect your future, and you want to make the right ones so consult with a lawyer before agreeing to anything.

3. Don’t Put Your Kids in the Middle

Try to avoid blaming your spouse, badmouthing your spouse in front of the kids or forcing your kids to choose between you during the divorce process. This can make life harder for your children, and it could backfire because the court could decide you’re engaging in parental alienation and opt to give primary custody to the other parent because of this misbehavior.

4. Don’t Hide Assets

There are laws requiring you to disclose financial assets. And forensic accountants can find hidden assets. You should not try  to hide money or property as there are legal consequences for being dishonest during divorce proceedings.

5. Don’t Drain Shared Bank Accounts

The court will decide how to divide up assets if you and your spouse cannot agree. If you have taken marital property leading up to or during the divorce, you could end up losing other property to your spouse in order to make things fair or to ensure a 50/50 split of assets in community property states.

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6. Don’t Miss Meetings or Court Hearings

You cannot ignore a divorce. You need to show up to all required appointments and court hearings. If you fail to come to court as required, the court may order a default divorce and grant your spouse their desired settlement.

7. Don’t Ignore Court Orders

If the court requires you to turn over documents, provide temporary support, or adhere to a particular custody arrangement, be sure you follow these requirements carefully. If you fail to do so, this could have legal consequences.

An experienced divorce lawyer can help you to appeal court rulings you don’t agree with and can assist you in understanding your rights and obligations during divorce proceedings.

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What not to do before you get divorced?

Before you get divorced, you should not clear out shared bank accounts or try to hide assets as this could have adverse consequences during divorce proceedings. You should also try to avoid fighting with your spouse as that will make it more difficult to try to work out issues amicably and create your own divorce settlement. An uncontested divorce  can be cheaper and result in better outcomes because you decide on custody, property and support rather than asking the court to do so for you.

What not to forget in divorce settlement?

Think long-term when you are creating a divorce settlement. For example, you will want to consider how retirement accounts should be divided even if you are a long way from retirement. And you should think about issues that will come up as children get older such as who pays for extracurricular activities or for college costs.

How do I prepare for my future divorce?

To prepare for divorce, get your finances in order. Open credit cards in your name if you don’t have credit of your own. Set a budget for what life will look like after divorce. And learn about the divorce laws in your state so you can understand how your marital property will be divided and what your parenting plan is likely to look like.

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• How to File for Divorce
• Divorce Papers & Forms
• The Divorce Process
• How Much Does A Divorce Cost?
• What Is A Divorce Settlement Agreement?
• Community Property States
• What Is A Contested Divorce?
• What Is An Uncontested Divorce?
• Legal Separation Vs. Divorce
• How Does Alimony Work?
• What Is A Prenup?
• How Long Does A Divorce Take?
• Annulment Vs. Divorce
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• What Is A Separation Agreement?
• What Is A Divorce Decree?
• What Is A No Fault Divorce?
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Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has appeared on Forbes, CNN Underscored Money, Investopedia, Credit Karma, The Balance, USA Today, and Yahoo Finance, among others.

The Ultimate Divorce Checklist: The Information You Need to Prepare for Divorce

Jason Crowley, CFA, CFP, CDFA

How well you are able to navigate through your divorce may rest in large part on your ability to produce legal documents and evidence that can support your claims for alimony, child support, a division of assets and other important issues.

Making sure you are treated fairly is vital to give you the best chance of moving forward in the best possible way after your divorce is finalized.

Whether your divorce issues are narrow and simple or complex and multifaceted, you will still need to acquire a fair amount of information to prepare for divorce.

Gathering this information in a logical and organized way can make the entire process less burdensome for you in both the short and long run.

That’s why we put together the ultimate divorce checklist  which lays out the information you need to prepare for divorce .

Here are some quick tips before we jump in.

Quick Tips to Prepare for Divorce:

• Open a checking account and savings account in your name alone. CIT Bank is a solid option if you’re looking for a high-interest savings account with no monthly fees. You can open all your accounts here .
• Open a credit card in your name alone.
• Order a free credit report. Better yet, sign up for a credit monitoring service like LifeLock . You’ll get notified if your spouse attempts to open credit cards and rack up debt in your name. The peace of mind is well worth the cost of the credit report.
• Make a list of all the assets and liabilities that you’re aware of. Include any memberships, reward points, and other perks that may be considered as assets.

The Benefits of Being Organized

Depending on the complexity of your divorce, you may need a lot of documentation to give to your divorce lawyer or Certified Divorce Financial Analyst . This is a primary step to prepare for divorce. Getting organized on the front end will save you time, stress, and a whole lot of money too.

When you are able to gather documents in a thorough and comprehensive way, many of the questions and requests for additional information by your attorney or financial experts will be minimized.

When you do a good job of assembling all of your information, you will also be able to get a much clearer picture of your overall financial health.  In turn, this will make it easier for you to prioritize what’s important to you, helping you to set goals for your post-divorce life.

Keep in mind that divorce is a give-and-take process, and until you have a full and complete picture of your entire life, you can’t possibly make the best decisions as you negotiate a fair and equitable settlement.

In addition, certain laws and statutes may come into play based on the type and nature of your assets, so helping your team understand your complete picture will also allow them to provide you with the most effective counsel as well.

When you are organized, you will also be able to break things down into more manageable tasks.  For example, you will be dividing one household into two, and that will mean determining your living expenses going forward.

Before your divorce, you had one house payment, one set of utility bills, one health insurance policy and so forth.  Now, you and your spouse will now have two of each of these (and many others) to deal with.  This means you’ll need to have a thorough understanding of your current and future expenses.

Your credit may be affected, and you may lose discounts on things like auto insurance, health insurance, cell phones and other related expenses.  It’s also critical to document these things if you are expecting to collect alimony and child support in the future.

When you get a sense, you are heading for divorce, set up an official system that will include documentation, official correspondence, court records, research, notes and more.  Make copies for yourself, your divorce lawyer and any other members of your team who will benefit from having pertinent information.  Any steps you take to avoid confusion or duplication is a winning strategy for you.

Doing this ahead of time gives your divorce attorney an immediate and useful overview of the property and assets likely to be at issue in your case. Most importantly, it allows the two of you to efficiently work together to secure your short and long-term interests.

Finally, understand that being organized has a lot of payoffs, but you need to be resolved to the fact that it will take time.  Don’t be in a hurry.  Don’t cut corners.

Don’t be in avoidance mode because you just want to get through things quickly so you can move on to the next chapter in your life.  Doing so only hurts you and your children because you could make costly mistakes and add to the considerable stress you may already be experiencing.

What to Do if Your Spouse Controls Many of the Records You Need

It’s quite common in a marriage for one spouse to be in charge of the records and paperwork for every part of a family’s life.  The downside of this in a divorce is that if you are not the person keeping the records, you may encounter some problems in getting what you need.

Some spouses will attempt to hide asset information .  Others will just be flat-out difficult when it comes to turning over records.  There may be instances where a spouse will also completely refuse to comply with a request.

This is why it’s best to gather as much information as possible before you make your spouse aware of your intentions.  By law, you are entitled to see all of the pertinent documents during a divorce, but this doesn’t mean they’ll always be easy to obtain.

In an acrimonious divorce, you may need to rely on a formal discovery process, using subpoenas and interrogatories to fully uncover what you are entitled to see.  In other instances, you may need to retain the services of a forensic accountant.  A certified divorce financial analyst will also know what to look at and what to ask for that will have relevance to your situation.

It may be difficult, but it’s best to keep an open line of communication with your spouse as you exchange information.  Some couples find it impossible to talk to their spouses after an initial split, and that’s understandable.

However, just because you’ve separated , does not mean you are done in your relationship with that person.  The better your communication and cooperation are, the quicker and easier your divorce will be.

Divorce Preparation Checklist

Depending on the nature and complexity of your divorce, you will need to gather much of the following information.  All of this will be helpful as you prepare for divorce. Keep in mind that because every divorce is different, there may be additional documentation you will need to provide beyond what is noted here, or some items on this divorce checklist will not be relevant to your situation.

Personal Information

• Your basic information: full name, date of birth, and social security number.
• Contact information such as an address, landline/cell phone number and email address.
• Proof of state residency.
• Information about your employer: name, address and phone number.
• Your length of employment and your monthly or annual salary. You should be prepared to show your divorce attorney at least three years of income taxes.
• Your spouse’s basic information: full name, date of birth and social security number.
• Contact information for your spouse such as an address, landline/cell phone number and an email address
• Your spouse’s employer information, such as address and phone number.
• Your spouse’s length of employment and salary.
• Where to serve your spouse with divorce papers if the divorce lawyer will be doing so. At your spouse’s work or place of residence?
• Current custody arrangements, including which parent the children live with and whether or not a custody dispute will be part of the divorce process.
• Information about previous marriages, including the divorce decree .
• Information about children from previous marriages on either side: the full names, dates of birth and social security numbers of any children from a previous marriage.
• Details about your child support, if applicable. Who pays and how much?
• Details about their child support, if applicable.
• Who provides health insurance for the children in this marriage?
• Wedding details: where and when you were married.
• The name of your spouse’s divorce lawyer if he/she has one.
• The name of a marital therapist you and your spouse visited with times and dates.
• A list of the marital problems that led to divorce if any involve alcohol or drug abuse, religious differences, infidelity, sexual incompatibility or, domestic abuse.
• Temporary Orders. If you are a bit further along in the process, include copies of all court documents and legal documents that establish deadlines, procedures, restrictions, or instructions related to your divorce process. Examples of these are restraining orders on your spouse, temporary maintenance, child custody, and visitation.
• Birth certificates for all children
• Domestic Partnership Certificate: Provide a copy (if applicable).
• Social Security Statement: Provide most current copy of statement.
• Prenuptial or postnuptial agreements
• Separation agreement
• Expenses for various lifestyle costs (e.g., school tuition, unreimbursed medical bills, music or dance lessons for children, etc.)
• Monthly budget worksheet
• Money you are owed, including names of those who owe you money, how much they owe, and the expected payment date.
• Information on any lawsuits you may be involved in.
• A list of any livestock, such as cattle or horses that you may own.
• List of property owned by each spouse prior to marriage
• List of property acquired by each spouse individually by gift during the marriage
• Inheritance: If you’ve received an inheritance, provide details (who did you receive it from, when, how much did you receive, and where did it go?)
• List of contents in safety deposit boxes

Financial Documents

Tax and income documents, year-to-date statements.

• Get the last three (3) full months and the most recent year-end statements for you and your spouse. Provide a year-to-date earnings record if not shown on paystubs. If your payroll includes bonuses, ESPPs, stock options, equity incentives, or other extraordinary income, provide year-end paystubs for the last 5 years if available. Provide accrued vacation hours if not shown on your paystubs.

Tax returns.

• Both Federal and State tax returns for the past 5 years, including all schedules, attachments, and W-2 forms as well as any “K-1” forms from business entities. If you or a reliable tax preparer did not prepare the tax returns, you may want to order a copy from the IRS. Let us know and we can provide you with IRS Form 4506 so you can make this request.

Corporate and Partnership Tax Returns.

• Get documentation in entities in which you had an interest for the last five years. (If an accountant has the records for your individual and/or business tax returns, you can obtain copies from the accountant.)

Financial Statements.

• Provide any financial statements prepared for you individually or for you and your spouse together, or for a business entity in which you have an interest in the past five years (the more recent the better), such as for a loan application.

Employment contract or employment offer letter.

• These documents should indicate compensation or other benefit information. Also, provide a summary of your Employee Benefits for you and your spouse.

If you are self-employed, provide the following:

• Financial statements or profit and loss (P&L) statements for the past five (5) years.
• Business returns for the past five (5) years.
• Buy-sell agreement or other agreement concerning valuation of business.
• Any loan statement or credit application for the business prepared within the past five (5) years.
• Any existing appraisal of the business.

Real Estate Documents

Marital home.

• Copy of the current Grant Deed(s) with Exhibit “A” (legal description) on each property that shows how title is held (if the title has been changed, provide copies of all deeds from the time of acquisition). The Deed of Trust or Note is not needed.

Appraisals or market value opinions

• For any real property, including the marital home, if dated within the last two (2) years.

Final Escrow Statement from Close of Escrow/Settlement Statement

• For purchase or sale (usually 2-3 pages) and for last refinance (if applicable). Shows price, down payment, closing fees, etc.

Form 2119 – Sale or Exchange of Principal Residence.

• Provide a copy from the federal tax return for the year you sold the residence and deferred gains on sale into a new principal residence. Applicable if the sale of residence was prior to May 6, 1997.

Mortgages and Lines of Credit

• Copy of the most recent mortgage or loan statement for each loan showing name, address, account number, monthly payment and balance. Also, provide terms of current loan: date opened, original loan amount, current interest rate, and length of loan.

Rental Property

• Records of ownership of all rental property. Provide cost basis (including improvements, depreciation taken, etc.).

Vacation Property

• Records of ownership of all vacation property and timeshare interest. Provide cost basis (including improvements, etc.).

Tax Assessor’s Statement

Personal property information.

• Inventory list with estimated resale values for your entire household. It can be very burdensome to list all the household furniture and furnishings to comply with this item, and it often is not necessary. It is not uncommon, at least for the Preliminary Declaration of Disclosure, to simply say “various” items acquired over “various” dates and the values of these items are “unknown.” On the other hand, if there are specific items of furniture and furnishings that are particularly valuable, please note those items.
• Jewelry, Antiques, Art, Collectibles, Wine, Gold , etc.: Ownership records, purchase receipts or description of jewelry, antiques, oriental rugs, artwork, stamp or coin collections, wine cellar, precious metals, gems, and other collectibles. Also provide appraisals on any such items (if you already have them).
• Vehicles, Boats, Trailers: Copy of title and registration for all vehicles, boats, airplanes, trailers, and motor homes. Provide loan statements (both current and at separation) showing the terms of the loan. Also, provide a copy of the Kelly Blue Book private party valuation.

Other Financial Information: Bank Accounts, Insurance Policies, Investment Accounts, Retirement Accounts, etc.

• Current statements for all bank accounts and online accounts including checking accounts, savings accounts, credit accounts, and other deposit accounts.
• Cash: If you or your spouse hold significant cash, such as in a safety deposit box, please note.
• Tax Refunds: Please provide information for any tax refunds you are expecting. Also provide copies of checks or records of refunds if received individually by either party before or after separation. If you expect a refund but haven’t filed your returns yet, provide a copy of your extension.
• Life Insurance and Disability Policies: Provide Declaration pages showing face amount, date, type of policy, insured, owner, beneficiary(ies), cash value and/or loan value. If a policy is term without cash value, you should provide the documents showing the death benefit, beneficiary and premium and whether it is an individual policy or a policy through your employer.
• Insurance such as Homeowners, Auto, and Health
• Stocks/Bonds, Investment accounts, Secured Notes, and other liquid and non-liquid investment accounts: Copies of all legal documents showing how title is held and most recent statements, plus a copy of statements as close to the date of separation as possible. If security is held in certificate form, provide a copy of the certificate. Also, provide cost basis of each security/investment owned. (Cost basis is needed on all non-retirement accounts)
• Retirement accounts and Pension s (401k, defined benefit and defined contribution plans). Provide a copy of the latest summary plan documents (with terms and conditions of the plan) and most recent benefit statements plus the statement as near as possible to the date of separation. Include any outstanding benefits from prior employers. For pensions, include the pension calculation showing your est. monthly income at the earliest retirement age.
• Profit-Sharing, IRAs , Deferred Compensation, Annuities: Provide the most current statement for all accounts and online accounts.
• Accounts Receivable and Unsecured Notes: Records for any money owed to you including lottery winnings.
• Partnerships and Other Business Interests : The Schedule of Assets and Debts requires the most recent K-1 form and Schedule C. All business interests should be listed, including general partnerships, limited partnerships, limited liability partnerships (LLPs), C Corporations and limited liability corporations (LLCs), as well as sole proprietorships.
• Other Assets: Records for any other asset or property not otherwise listed above. Assets may include, but are not limited to:
• Stock Purchase Plans– ESOP, ESPP and stock purchase plans.
• Stock Options and RSUs – Stock option grant agreement (grant letter) and most current grant statement covering each grant received, from date of grant to present, for present employers (and prior if not fully exercised or expired). Description or plan statements for all employer stock option plans under which you have received options.
• Cafeteria Plans/Other Benefits – Provide most current statement or description of cafeteria benefit plan, incentive or bonus plan and any other employment benefit in which either spouse participates.
• Severance/Early Retirement – All notices/statements regarding severance or early retirement benefits offered by or already received from the employer of either spouse.
• Intellectual Property – Records reflecting any patent, trademark, copyright, licensing agreement, royalty, or other intellectual property rights.

Credit Report and Debt Information

• Student or other education-related loans: Provide the most recent statement. Include all information such as balances owed, interest rate, payment schedule and the school, and what period of time you or your spouse received the loan.
• Taxes: If you believe taxes are owed, please state. Also, if estimated taxes have been paid for the current or preceding tax year but the return is not done, please provide information as to how much has been paid and from what source. Provide letter/notice of any federal or state tax deficiency issued before or after separation and not yet paid.
• Support Arrearages: Refers to support owed to previous spouses or for children from previous relationships or for support you or your spouse has been ordered to pay in this dissolution proceeding prior to the preparation of this document. Provide copies of orders and statements.
• Loans—Unsecured: Provide the most recent loan statement for all unsecured loans along with the name of institution (bank name), loan number, current rate, etc.
• Credit Cards: List the name of the cardholder as well as card number and balance owed. This info can be found on your credit report . Please provide a copy of the most recent statements and the statements for the two or three months from the date of separation and immediately thereafter. If card has reward points/frequent flyer miles, provide the total owned.
• Other Debts: Information including the most recent statement on any debts not listed above.
• Full credit report

Business Records

Provide the following for any business you or your spouse have an interest:

• Corporate or partnership tax returns for the past five (5) years for both Federal and State.
• Year-end financial statements for past five (5) years if not contained in your returns. If there are computer-generated financial statements, those should be provided in electronic form along with a paper copy.
• Most current financial statements as to income and expenses and balance sheet, as well as for the period as close to the date of separation as possible. If there are computer-generated financial statements, those should be provided in electronic form along with a paper copy.
• Copies of partnership agreements, and in the case of corporations, the formation documents and copies showing how title to shares of stock or membership interests are held and in what amounts.

Estate Planning Documents

• Wills or Living Will Documents
• Certification of Trust: Provide a copy if you have a Trust. Provide Certification of Trust only and not the entire Trust document.
• Powers of Attorney
• Durable Powers of Attorney
• Advance Healthcare Directives

Issues and Questions About the Divorce Process

In addition to the above information, you should also keep a list of issues and questions that concern you.  Keep a running tally of these things that surface during the divorce that will require some follow-up action.

These may include statements made by your spouse, their attorney, or one of the third-party experts in your case.

To save time and money, you may want to group these questions and ask them several at a time, instead of a constant exchange of one-off questions and answers with your attorney, certified divorce financial analyst, accountant, financial planner or other members of your team.

Final Thoughts

If you’re struggling emotionally, be sure to get the support you need. Taking care of your mental health is more important than ever.

Talk to a trusted therapist. If you don’t have one, consider online therapy.

With online counseling apps like BetterHelp, you can choose from thousands of licensed therapists without breaking the bank. Connect wherever and whenever it’s convenient for you by phone, video, or text. Check out BetterHelp now and get 10% off >>

Looking for more great tips on divorce and money? Here are a few of our favorite resources:

• 101 Financial Pitfalls of Divorce
• A Guide to Your Home and Mortgage in Divorce
• Health Insurance and Divorce: The Definitive Guide
• Dividing Retirement and Pensions in Divorce: A Helpful Guide
• What Are the Types of Divorce?

Jason Crowley is a divorce financial strategist, personal finance expert, and entrepreneur. Jason is the managing partner of Divorce Capital Planning , co-founder of Divorce Mortgage Advisors , and founder of Survive Divorce. A leading authority in divorce finance, Jason has been featured in the Wall Street Journal, Forbes, and other media outlets. He is a Chartered Financial Analyst, Certified Financial Planner practitioner, and Certified Divorce Financial Analyst. You can email him at [email protected] .

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Full Disclosure in Divorce: How to Give It and Get It

Financial disclosure in divorce

What is full financial disclosure, what might happen if you fail to disclose all finances, what to do if you suspect your spouse is hiding assets, how to make sure you’re doing it right.

Going through a divorce is an emotional process. Unfortunately, it's also a time-consuming and potentially frustrating process. While transparency is important, financial disclosures require lots of effort on your part, both to collect your information and also to review your spouse's details. Financial disclosures are a vital component of the divorce process.

When a couple decides to get divorced, one of their first tasks is to share financial information with each other. This includes information about all of their assets and liabilities, including their income (pay stubs, tax returns) and expenses. Financial disclosures are important because the information helps keep the process of debt and property division fair – including how much child support or spousal support one spouse might be obligated to pay the other.

The requirements for financial disclosures vary by state, but in most states, some level of disclosure is required regardless of how amicable the spouses are. If one party fails to disclose sensitive information, they could be held liable later on in the divorce process. This could result in a variety of penalties, including fines.

Why are financial disclosures so important?

As mentioned, financial disclosures help keep the marital settlement agreement fair. This is especially important when there are significant assets or debts involved. Furthermore, financial disclosures can help prevent fraud and abuse. When each spouse knows exactly what the other has, it’s much harder for one to try to hide money or assets from the other. 

Finally, financial disclosures can help speed up the divorce process. With all the relevant financial information you need upfront, both parties can work together to negotiate a settlement agreement that is fair and equitable for everyone involved.

Marital vs. separate property

Notably, only marital assets are subject to distribution. Separate property must not be divided. Therefore, it's important to understand the difference between marital and separate property.

Generally, any property acquired during the marriage is considered marital property. This includes items purchased with joint funds as well as items that were given to one spouse by the other. Any property that was acquired before the marriage, inherited, or gifted to one spouse is considered separate property.

The term “ full financial disclosure ” refers to the complete sharing of all information about assets and liabilities. Full financial disclosure is required in most states. That way, there are no surprises when it comes time to divide property and assets.

While the required financial documents may vary based on your financial situation, some requirements are similar across the board. Expect to disclose at least the following:

• Bank statements
• Credit card statements
• Tax returns
• Mortgage statements
• Utility statements
• Retirement account assets
• Student loans
• Real estate deeds
• Business assets and liabilities

If you're considering divorce, it's important to understand the full financial disclosure rules that apply in your state. In Utah , for example, a spouse who does not disclose all of their assets may forfeit those assets or pay a fee. This is just one example of how full financial disclosure can impact a divorce proceeding.

When both spouses are completely transparent with each other, they can avoid misunderstandings and accusations later on. Full financial disclosure may even speed up the divorce process.

If one spouse tries to hide assets , the other spouse will likely find out. Hiding assets can cause major problems. For example, let’s say one spouse has been hiding money in a secret bank account. The other spouse will find out about the account during the financial disclosure process. Hiding assets can lead to accusations of fraud or spousal abuse. 

If you suspect your spouse is hiding assets that may be subject to distribution in divorce, it's important to take action. Gather as much information as possible. You'll need to track down bank statements, credit card bills, and other financial documents. If your spouse is trying to hide assets, they may be doing so by transferring money into different accounts or by buying expensive items that can be easily hidden.

To find out what financial disclosures are required for divorce in your state, the first place to look is your state or county clerk of court family law section. Most clerk websites include detailed information, including the actual forms you'd need to complete. Reviewing the financial disclosure form will give you a much better idea of what information and documentation you need.

Hello Divorce can offer you guidance. We know divorce can be an exceptionally confusing and frustrating process – not to mention an emotional one – so our dedicated team of family law professionals is standing by to help you navigate the complexities of financial disclosures. Whether you would like to sign up for an hour of financial planning with a certified divorce financial analyst or just want to learn more about our plans and legal services , please reach out. You can schedule a 15-minute free phone call with one of our friendly account coordinators here .

Bryan is a non-practicing lawyer, HR consultant, and legal content writer. With nearly 20 years of experience in the legal field, he has a deep understanding of family and employment laws. His goal is to provide readers with clear and accessible information about the law, and to help people succeed by providing them with the knowledge and tools they need to navigate the legal landscape. Bryan lives in Orlando, Florida.

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The Important Role of Personal Financial Statements in Divorce

High dollar, contested divorce litigation engagements often involve complex financial issues. In turn, those financial issues usually include business valuations and voluminous amounts of documents and financial information. How does an attorney or business appraiser determine what is crucial to the case and what is secondary information? One such piece of financial information that varies wildly in its interpretation and importance to the case is a personal financial statement.

What Is a Personal Financial Statement?

Depending on the jurisdiction, most family law attorneys are familiar with documents often referred to as Sworn Financial Affidavits, Asset/Liability Statements, Marital Balance Sheet or Divorce Financial Statements that are included with the filing of the divorce case.

A personal financial statement is a similar document that is typically submitted to a bank or lending institution for the purpose of securing financing by representing an individual or couple’s financial position or net worth. In other words, it’s an asset and liability statement with estimates of value for each item akin to a balance sheet. Therefore, the couple’s or individual’s net worth is the sum of all assets, less the market value of all liabilities. For most liquid assets, such as cash/bank accounts, and investment/retirement accounts, the values can easily be obtained from the most recent account statement. Market value estimates for other assets, such as residential and personal real estate, can be obtained from recent appraisals, recent purchases, property tax assessments, and/or realtor websites. If the individual or couple owns a business, there generally is an estimate of value assigned to that asset. Since a business represents a non-liquid asset, the source of that value estimate can vary widely.

Below, is a common example of a personal financial statement:

Generally, the following items are excluded from a personal financial statement:

Leased/Rented Items: These assets are excluded since they are not actually owned by the couple or individual. However, if the couple owns a piece of property that is rented to someone else, it would be included as an asset. Further, some personal financial statements include a summary of all forms of income and expenses, often expressed in the form of monthly or yearly amounts, if the personal financial statement is used to obtain credit or to show the couple’s or individual’s overall financial position in addition to their net worth.

Personal Property: Refers to items such as furniture and household goods. Generally, the value of these items is not readily known and they are generally not considered for credit as they are unable to easily be sold. If there is any personal property with significant value, such as jewelry, cars, antiques or collectibles, their value might be included with an appraisal as the source of value. Family law attorneys will note that values for personal property are also generally not listed on divorce filings. Opinions on value can widely vary and often the true value to an individual may be rooted more in sentimental reasons than actual value. Unfortunately, the allocation of value to these items or the selection as to who ends up with each item can be one of the last and most challenging aspects to settling a case.

Why Is a Personal Financial Statement Important?

Family law attorneys, financial experts and business appraisers should ask for personal financial statements as part of their discovery or information request process. If one exists, how important is this document and how much weight should be given to it? Here’s where there are different views of the same document.

One view of a personal financial statement is that no formal valuation process was used for business assets; so at best, it’s a thumb in the air, estimate of value of the business. Did the business owner complete the form without consulting any external data or did the business owner recently conduct a business valuation on the business or consult with a business appraiser? Chances are the spectrum of possibilities is generally closer to the former than the latter, but it might bear to ask questions regarding the circumstances of the personal financial statement.

Another view is that the individual or couple submitting the personal financial statement is attesting to the accuracy and reliability of the financial figures contained in that document under penalty of perjury. Further, some would say the business owner is the most informed person regarding his/her business, its future growth opportunities, competition, and the impact of economic and industry factors on the business.

With such considerations, how do family law attorneys and business appraisers use personal financial statements? Dismiss them and throw them out? Use them as a gold standard and forego a formal business valuation? As usual, the two adages “it depends” and the “truth lies somewhere in the middle” are both probably accurate in this situation. Personal financial statements can be helpful in some cases or they can lack third party independent analysis as to the value of the business assets in other cases.

Do You Like Surprises?

Attorneys and business appraisers do not want to be surprised by not knowing about information or documents that exist. Therefore, ask for personal financial statements. They should then be used as another data point along with the other indications of value that a business appraiser is considering, such as an asset value, income value, market value, recent transactions within the Company’s stock, etc.

As with recent transactions within the Company’s stock or other market indications of value such as prior company transactions or contemplated sales/mergers, consideration should be given to the following factors: First, what is the timing of submission for the personal financial statement or data point to either the date of filing or date of trial. In other words, a recently submitted personal financial statement or data point is more relevant than one from five or ten years prior. Second, what was the context, relevance and motivation involved in the event? Why was the personal financial statement submitted or did the event represent an arm’s length transaction between two unrelated parties, as opposed to family members. Finally, do the values submitted in the personal financial statement or other data points caused by events represent elements of fair market value or do they reflect strategic value. A recent issue of Family Law Valuation and Forensic insights , covers the definitions of some of these standards of value in the overall context of understanding and defining the assignment.

If the value indicated for the business by the personal financial statement falls within a reasonable range of the estimates from the other methodologies, it could probably be given more weight. Be cautious if the value indicated for the business by the personal financial statement is materially higher or lower than a reasonable range indicated by the other methodologies. In which case, it may require the business appraiser to ask more questions regarding the thought process behind the estimate in the personal financial statement or why conditions might have changed drastically from the submission to current day.

Bottom line, ask for personal financial statements, review them, but consider them along with other factors and methodologies before concluding on a value for the business. These documents can be helpful in the divorce process, but don’t let them become the smoking gun by not asking for them or by not being aware that they exist.

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Divorce Financial Statements - Everything You Need to Know

Posted by Joshua Wilson | Mar 26, 2021 | 0 Comments

What is a Divorce Financial Statement?

The divorce financial statement is a form that lists all assets and liabilities of each person involved in the divorce. Each person must fill one out their portion and submit it to the court in order to explain their financial situation to the court. 

Divorce financial statements are used to handle splitting assets, as well as issues involving debt, property division, as well as both child and spousal support . That's why you need a family law attorney during this process. 

Types of Divorce Financial Statements

There are two different options when generating your financial statement documents - short form and long form. 

The short form divorce financial statements are for those who make less than $75,000. The long form financial statements are for those who make more than $75,000 annually, or are self-employed . It is essential to fill out the correct form because this is what determines how your assets are divided, as well as child support and alimony payments.

Tips to Help Ensure your Financial Statement is Accurate & Complete

Here are a few tips to make sure your divorce financial statements are filled out properly, accurately claiming assets and finances during the divorce.  

Do not estimate your monthly expenses

When it comes to divorce everything needs to be exactly accurate. You may even consider hiring someone to help summarize your expenses from bank statements. Do this for the past three years at least, because it will give you an accurate idea of your true monthly expenses.

Make sure you account for all income

Filing an accurate divorce financial statement means you need to file the amount of gross payroll. This can be found from your pay stubs, because it is your before tax gross income. If you have a day job but also a side business, bonuses, rental income, or reimbursed business expenses, you will need to include these. 

Be sure to report both business and personal expenses on different sides of the statement. If you make mistakes it may be seen as intentional which would make you look very bad in the eyes of the judge.

Report assets at their proper fair market value

Make sure that you never estimated when it comes to your assets. Online websites may not be able to give you the real value of your home or car, therefore you need to have a professional appraise them. Additionally, this will give you confidence in knowing the value of your property.

Make sure all the assets and liabilities are accounted for

If you have reported your income and investments on your tax returns, then you need to make sure that these are also reported on the divorce financial statement. Some tax-deferred or tax-free assets should not be reported on your tax return, but they do need to be listed on your divorce financial statement. Any liabilities and debts including money borrowed from friends and relatives also needs to be included.

Update your financial statement

Divorce is not an easy or quick process. This means that as time goes on you may need to make changes and updates to your financial statement .Whether this includes your address, sale of a home, or any other changes in your life. Continue to update your financial statement regularly.

Get Help from a Family Law Attorney

Going through a divorce can be difficult to handle on your own. A family law attorney has experience and will be able to file paperwork for you. If you are going through a divorce the Joshua Wilson Law Firm can help. 

We specialize in divorces and can document your divorce financial statements for you. Speak with a divorce attorney today to schedule a free consultation . 

About the Author

Joshua Wilson

Divorce is complex and highly emotional. Everything is going to change, including your most important personal relationships, your finances, your daily routine, and -- of course -- your home life. This can be a stressful time, and the parties involved often are not thinking clearly. You need some...

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Home › Insights › Divorce Checklist: Financial Information and Documents that Can Aid a Settlement

Divorce Checklist: Financial Information and Documents that Can Aid a Settlement

According to the Women’s Institute for Financial Education , each year, nearly 2.8 million men and women go through the emotional and financial trauma of divorce. And, financial survival is one of the most common concerns.

One of the biggest mistakes divorcing couples make is being in the dark about their finances. If one spouse in the marriage has historically been the financial decision maker and records keeper, he/she may have an unfair advantage when it comes time to settle the financial issues in a divorce. Though it’s underhanded and illegal, sometimes a spouse may try to move or hide assets without his or her partner’s knowledge. He or she may try to hide cash in a safety deposit box, under-report income or over-report expenses and/or hand off property to family and friends with the intention of getting it back once the divorce settlement is finalized. If any of these activities are suspected, it’s critical to engage a qualified forensic accountant and Certified Fraud Examiner to investigate the financial trail and assist with financial fraud detection. In fact, the use of forensic accounting in divorce proceedings is becoming increasingly more common.

For couples heading toward the divorce process, my most important piece of advice is to take stock of your financial situation and start gathering and making copies of your documents and records before the process even begins.

The courts require each spouse to file a financial affidavit — a formal document detailing these common financial factors included in a marriage: income, expenses, assets, and debts and liabilities, etc. This document provides the courts with an overview of a couple’s current financial situation, and is necessary for the final divorce settlement agreement, as it is also used to determine alimony, child support and division of property.

Below is a financial checklist of items to consider that will be a great asset to your legal counsel in a divorce settlement.

Financial Checklist for Divorce

• Account for the contents of any safe deposit boxes you may have.
• Obtain current income information since your last tax return, such as payroll stubs, investment properties, rental/lease agreements, dividends, interest, royalties, etc.
• Review any retirement plans and insurance policies.
• Include statements from loans, investments and checking and savings accounts.
• Look at credit card statements and income tax returns within the past five years.
• Review brokerage statements from all accounts of securities and/or commodities dealers or mutual funds.
• Do you have any business financial statements ? These include a net worth statement (balance sheet or list of assets and liabilities) and an income statement (cash flow or income and expense statement). Having copies of your spouse’s business records could lead you to uncover hidden assets.
• Obtain any statements related to pensions, money purchase plans, profit-sharing or employee stock options .
• If you have any outstanding debts, you’ll need to produce documentation. Such items can include mortgages, personal loans, credit cards, promissory notes and lawsuits pending or previously filed in court.
• Make a list of all personal property owned prior to your marriage as well as acquired during the marriage by gift and/or inheritance.
• Include appraisals of any assets you’ve owned within the past five years.
• Review employment records during the term of the marriage to show evidence of wages, salaries, bonuses, commissions, raises, promotions, expense accounts, and other benefits or deductions.

While you’re reviewing your financial documents and statements, it’s also wise to assess your current credit and request a copy of your credit report. It’s critical to protect your credit score during a divorce. Review any debts you have and monitor debts that your spouse has access to, such as credit cards, bank loans, mortgages and home equity lines of credit. Consider signing up for a credit monitoring service to alert you if there is a change to your credit history. The health of your financial future and post-divorce finances are not to be taken lightly.

You’ll want to rely on a trusted team of financial and legal professionals to guide you through the lengthy and complex process of divorce. A family law attorney and forensic accountant can work together to ensure that all the legal and financial details are in place and nothing is overlooked.

Do your homework and retain an experienced family law attorney and forensic accountant with proven track records of success to help.

If you need any additional information or have questions, contact Withum’s team of professionals.

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Divorce Checklist: How to Prepare for Divorce

24 Min Read | Sep 10, 2024

Get a Team Together Gather Personal Information Identify Your Personal Property Organize Your Legal Documents Get Your Finances in Order Find a Place to Live Take Care of Yourself

Make no mistake: Divorce is heartbreaking. It is a kind of death—the death of a dream, a marriage, your plans. The picture you had of your life suddenly ends up in ashes. And to make matters worse, you’re left to clean up a legal, emotional, spiritual and financial mess.

If you’re there now, hear me when I say I’m so sorry. This sucks. But you will survive. If you commit to small, daily changes—little wins—and connect with others in vulnerable relationships, you will come out stronger. I’ve put together this divorce checklist to help you care for yourself, your finances and your future.

Let’s be clear: I hate that I had to write this article. I rarely, if ever, encourage divorce. In almost every situation, I want people to save their marriage—to put in the hard work and rebuild a stronger, more beautiful, lasting union.  

But if you’re facing the difficult reality of divorce, this checklist will walk you through the steps of preparing for divorce. So grab a cup of coffee or tea and let’s get started.

And remember: Light will come after darkness.  

1. Get a Team Together

Divorce feels lonely and cold. Some days you want to crawl into bed and never come out. Sometimes it’s good to withdraw and feel the dark grief. But it cannot be your chief coping strategy.

You need to take care of yourself (more on that soon). For now, here is the most important thing I’ll say: You cannot do this alone. You need other people. Not your kids and not just your parents. You need a gang. A tribe. A carload of 2 a.m. ride-or-die friends. These people should have good boundaries , thick skin and your best interests in mind.

Do two things when choosing your support team. First, choose people who can support you in different areas—because divorce affects every square inch of your life.

Second, let each person help in appropriate ways. Your attorney is not your therapist. Your therapist is not your friend. Your friend is not your attorney (unless they really are an attorney). Instead of unfairly expecting people to do things they can’t, stick to the expertise they can give in their specific areas.

Build your team to fill these roles:

Sometimes, talking to a trusted family member or friend is fine in a moment of need. But I always recommend meeting with a professional counselor or minister. Especially if you’re coping with major trauma —like domestic or substance abuse, or childhood trauma kicked up by the divorce. You may just need one session, or you may need some deep healing. Either way, let your friends be your friends and lean on professionals for the heavy lifting.

During divorce, your body switches into fight-or-flight mode and makes tons of adrenaline and cortisol. Keeping those stress chemicals in your system for a long time is unhealthy. So take care of your body, and pay attention to your needs even when you don’t feel like it. Hit the gym with a friend. Go for walks with a work buddy at lunch. Eat well. Get a full night’s sleep. Choose less caffeine, less alcohol, less Netflix and less loneliness .

While you can complete an amicable divorce with a ton of mutual maturity, most people need a divorce lawyer. A good lawyer will help you understand your rights, responsibilities and all the legal talk so you can make educated choices about your future. Just make sure your attorney has the heart of a teacher, not the heart of a nuclear demolition expert.

The Dr. John Delony Show helps people through real-life marriage challenges. Listen now!

Hear me on this: You will not win if you use your attorney as a weapon to wage war against your ex. You might get the house, the dresser or the dog. But you will lose your dignity and hurt your kids. You win when you let your lawyer help you legally close the relationship, then move on. Besides, every exchange with a lawyer costs money. You’ll save major time and money if you keep your emotions in check and make a list ahead of time of what you want to discuss with your lawyer.

Financial changes will be some of your biggest stressors, so talk to a financial planner . They’ve walked other clients through divorce and can help you make good financial decisions. And make sure you have a good CPA or tax expert in your corner. Filing taxes after divorce is no walk in the park, but a tax pro can walk you through all the changes on your return. 

You’ll also need to take a long, hard look at all your insurance policies (more on that later). For now, find a trustworthy local broker who can get you the best rates and the most coverage. 

Divorce causes deep pain in your soul. You may question your worth or judgment: How could this person leave you? How could you pick someone who would hurt you so badly? What is wrong with you? What was wrong with them?  

If you’re a person of faith, you may question your place in your religious community, your relationship with God or even your salvation. People will come out of the woodwork saying stupid, misguided things about you, God and your future.

But the truth is—no matter your faith—you are worth love and respect. God has not left you. You are valuable. Find compassionate people who will walk with you and say, “Man, this sucks. I don’t know the answer. But we’ll do this together.” 

Divorce hurts kids. Relational tension, drawn-out court battles, trashing your spouse, using your kids as bargaining chips and hiding things from them all create lasting trauma.

If you’re a parent, remember that your kids are not on your emotional support team! You’re on theirs. It’s your job to love, protect, support and connect with your kids. It doesn’t matter if they’re two or 22, they will struggle with the fallout from their parents separating. And they’ll probably feel like it’s their fault.

Children—especially young ones—see themselves as half mom, half dad. So even though your soon-to-be ex might be horrible, decide not to talk bad about them in front of your kids. When children hear those poisonous words, they absorb that poison too. They believe half of them is bad. The separation is already painful—don’t hurt them more with unkind words.

Don’t pit them against your spouse either. Your children are not spies to rat out what your spouse says or tools to “win” the divorce. Don’t force them to play that role.

Instead, model what grieving looks like—in age-appropriate doses. Let your kids know you’re in pain. Let them see tears . . . and healing. Let them see you with friends or turning off the TV to take walks. Hold them tightly and say “I love you” every day.

And find people to help you support them—like a youth leader, their favorite coach or a school counselor. Because even if you reassure your kids they can talk to you, they might prefer someone further from the situation. And that’s okay!

During the divorce, you will feel alone, scared and overwhelmed. Some days will be heavy darkness and drawn curtains. Other days, you’ll feel like singing (preferably 80s rock songs). Assemble your team to love and support you and your kids every day.

2. Gather Personal Information

Finding your support team takes time. So while you pull people together, prepare for the divorce by gathering these four types of personal info: 

Individual Info

Some of this information about you and your spouse is for practical or even safety purposes. Things you used to share need to be private now. It may not be that big of a deal if your ex uses your Disney+, but they could do some serious financial and emotional damage if they have access to your mail, email or bank account.

You may need to change passwords, get a new email address, or get a P.O. box where you can safely receive mail from your attorney. These boundaries may be hard to set, but they’re critical.

And some of this info helps with the legal process. Your attorney needs proof of residency to follow your state’s divorce laws. And the judge needs to know how much you and your spouse make so they can award child support and alimony.

You’ll need this information: 

Marital Info 

Talking about your marital history will be painful. But you must choose to be vulnerable and brave by sharing these details with your attorney:

•    Copies of past marriage and divorce certificates, plus why you got divorced •    When and where you and your spouse were married •    Names of the people who signed your marriage license •    Every date and time you and your spouse visited a marriage counselor together—or when you went alone if your spouse refused to go •    Reason(s) for the divorce, like infidelity, substance or spousal abuse, incompatibility, etc.

Lean on your support team as you collect this info. And remember: This list is for your attorney, so be professional and precise. Don’t write, “Because that stupid, lying idiot cheated on me for 10 years.” Save that rant for your counselor. For the attorney, write, “Infidelity throughout the marriage.” 

Divorce Info

If you’re further along in the process, you or your spouse may already have some temporary orders in place. If so, keep these documents handy: 

•    Restraining order •    Child custody order •    Visitation order •    Prenuptial or postnuptial agreement •    Separation agreement

Kids’ Info 

This sounds weird, but you may not need info for all your kids. So let’s define which kids we mean.

You may have to hunt for each child’s information, which is no fun even if your spouse helps. Hang in there. You can do this. You’ll need:

• Full name and birthdate
• Social Security card and birth certificate
• Medical history, medications, special care instructions and allergy information
• Family doctor, dentist, eye doctor or specialists
• Daycare or caretaker
• A description of current childcare arrangements
• A description of current custody arrangements and addresses for places where visitation takes place
• Amounts of child support you already receive or pay
• An accurate list of expenses, like school tuition, medical bills, clothes, sports, music lessons and so on
• The policyholder’s name and policy number for your child’s health insurance
• Adoption records
• An actual calendar where you write visitation times and custody handoffs (this way, you won’t miss anything, and your kids will know you care)

Sometimes, spiteful spouses hide documents about themselves, the kids or even their ex. If this happens, don’t roll in the mud with a pig! Meaning, don’t get even with more childish behavior. Instead, ask your lawyer how to file formal motions to get these documents.

3. Identify Your Personal Property

Part of divorce is deciding who gets what. It’s tempting to take personal property to punish your spouse. But don’t. Everyone loses that way, even you. So be fair and have integrity.

The first step is to inventory the stuff you own individually or jointly with your spouse. List each item and its value, gather any relevant paperwork, then top it off with a photo so you have proof of what you own.

You can have these items appraised by professionals or do it yourself with some online research. You can also group small items to save time. You might say, “Various cooking utensils. Value unknown.” Then, focus your inventory on specific, valuable items you want to protect. 

And don’t sweat it if you lost a receipt or two. Just gather the paperwork you have and get accurate appraisals.

4. Organize Your Legal Documents

Okay—now it’s time to collect all your legal documents. This may feel boring, but trust me: It’s important. If you don’t know where the papers are or your spouse is acting like a brat, your lawyer can help you get these important documents: 

Basically, make a copy of any legal document that proves your personal information or relates to insurance or end-of-life plans.

Update Your Insurance

You need insurance policies only in your name so you’re no longer financially responsible for your ex or their stuff. Otherwise, if your ex wrecks their car after the divorce, you could be liable if your name is still on the policy.

Health insurance is a little different, since the policyholder can’t drop their spouse or kids until the divorce is final. But it may be easier to go ahead and get your own insurance. The key is to learn how to compare health plans so you can get the right one for you. 

Another reason to update your insurance is to name a new beneficiary. Life insurance and disability payouts should go to loved ones who depend on your income—not your ex. And while you’re at it, be sure you have a term life policy worth 10–12 times your annual income.

Finally, you need identity theft protection. In 2019, Americans reported over 3.2 million cases of fraud and identity theft. 1 And divorce makes you extra vulnerable to fraud by scammers or even your ex. With identity theft protection , an expert team will help recover your info—and money—if anyone tries to scam you.

Update Your Will and Powers of Attorney

Like life insurance, your will should benefit your kids and other loved ones. You’ll need to update it so your stuff and money goes to them, not your ex. Just make sure to wait until the divorce is final so you know what assets to include. 

Your ex should be the kids’ guardian, so they can live with their other parent if something happens to you. Unless the kids aren’t safe with your ex. In that case, choose someone trustworthy and responsible.

When you create an online will after the divorce, you should update your powers of attorney too. After all, do you really want your ex making your financial or medical decisions for you?

5. Get Your Finances in Order

Money fights are a major contributor to divorce, and finding your financial footing afterwards can be scary. For now, focus on what you can control and don’t go down rabbit holes about what might happen. Start with these steps: 

Gather Financial Documents

You already gathered some financial documents with your personal info. But now it’s time to take a deep dive into every category of your money. Here’s what you need for both you and your spouse:

While you’re at it, gather your login information for all your accounts. Then change your passwords immediately so your spouse can’t access them.

Separate Your Finances

When you get married, “his” and “hers” becomes “ours,” which is why we’re big on joint bank accounts here at Ramsey. But during a divorce, you have to draw new boundaries to protect yourself and your money. 

Get your own checking and savings accounts and reroute your paychecks there immediately. If you’re ready for Baby Step 4 (investing 15% of your income), set up your own retirement account. And if you stay in the house, get the utilities, digital subscriptions and other bills in your name. 

Those changes are usually pretty easy. But ditching your spouse’s debt? Not so much. Many people think they’re off the hook if the divorce court orders their spouse to pay a debt. But the truth is, you’re still responsible for debt your name is on—even if your spouse is told to pay it.

If they don’t, it’s usually best to settle the debt for pennies on the dollar. Yes, it sucks to get stuck with the bill. But settling will be worth it to get out of debt and rebuild your finances without your irresponsible ex. 

Put an Emergency Fund in Place

You’ve heard the saying, “When it rains, it pours.” Well, your emergency fund is your umbrella. Because even during this divorce crap-storm, other disasters will still happen. Your emergency fund saves you when your water heater leaks, your kid breaks an arm or your car spews oil all over the driveway. Stockpile as much cash as you can, as quick as you can. Even if you’re paying off non-mortgage debt on Baby Step 2, pause your debt snowball and only make minimum payments so you can pay your bills and attorney.   

Make a Monthly Budget

Right now, you might feel discouraged—or even terrified—about money. Divorce is expensive, and it’s normal to feel lost at sea financially. Expect to feel vulnerable. That’s why you have your support team. They’re your anchor, so hold onto them. 

Although it may seem hard, I want you to think of a positive financial future. Now’s the time to take control of your money. Then, once the divorce is final, you can become debt-free and live your financial dreams. 

Write down those dreams and a monthly budget. The dreams will motivate you to stick to the budget. The budget will help you set healthy spending limits so you can reach the dreams. And they’ll both help you keep your head above water during the divorce. 

Raise Your Income 

Divorce changes your finances—losing your spouse’s income, going back to work, paying child support or moving (more on that in a minute). The economic losses can be especially tough for single parents with sole custody. So it’s important to be realistic about your finances.

If you can’t pay your bills on what you make and you cut out everything extra, you have to put other plans on hold and make more money. This sucks and it hurts. 

You may need to take on a new career , extra shifts or a side hustle like delivering pizzas. Get creative or ask for help with childcare. And remember, this difficult season is not forever. Be proud of yourself for taking control of your life. 

6. Find a Place to Live

Some couples live together until the divorce is final. But usually, someone needs to move out. If living with your spouse is too painful, start looking at your options. And if you or your kids are unsafe at home, get out immediately! 

Moving out is painful in many ways. Emotionally, it makes the separation more real. Financially, it can be a burden—especially if you rent and still pay for your marital home. So it’s important to choose the right housing.

If You Stay in the Home

You may feel like you won if you get to keep the house. But now you have to be able to afford it. “Affordable” means your rent or mortgage costs less than 25% of your take-home pay. Any more and you need to consider other options.

Is your spouse willing or required to make payments? Is there another way to stay afloat? If not, you may have to sell the home and relocate. (Talk to your spouse first if the house is still in their name, though!)

Don’t keep a home you can’t afford to feel victorious or keep up appearances. Be realistic and humble—your divorce is not like the ones in movies. If you can’t afford it, you can’t afford it. 

If You Move Out

The same rule still applies: Your new place should cost 25% or less of your take-home pay.

You may think, “That’s impossible! This area is expensive” or “I don’t have any credit—my spouse made the money.” Even people with a high income think they can’t find new housing after divorce for these reasons. But you can find an apartment or even buy a house without a credit score. In fact, no credit score can actually be good. 

Most apartment complexes will rent to you if you have proof of income. And some mortgage companies do manual underwriting: They look at the big picture of your finances and what you can really afford, instead of denying you based on a stupid credit score. 

So you can find housing. Even if you have to move, downsize or make some lifestyle changes. Connect with a great real estate agent to help you find a safe, affordable place. Or get with friends and find a short-term apartment while you figure out your next steps. 

7. Take Care of Yourself

Divorce is horrible, even if you and your soon-to-be ex are on good terms. If not, it’s even worse. I can’t stress enough how important it is to take care of yourself—and to grieve. 

Give Yourself Permission to Grieve

You must let yourself hurt over the loss of your marriage. You need to grieve the Thanksgiving meals you won’t have, the front porch you’ll never build, the friend and parenting partner you lost, and the broken heart you didn’t expect. Don’t skip this important step.

Grief is natural, messy and different for everyone. Keep your team close as you work through these feelings. 

Keep It Civil

I’ve said this several times, but it’s important enough to say again: Do not go to war against your ex. You may need to double down to do what’s best for your children, but do not seek to punish your spouse. The only people who win divorce wars are the lawyers.  

Acrimonious divorce is a legal phrase you may hear if you and your spouse are on bad terms. It means you—or your spouse—are making the legal process worse by unleashing your hurt, anger or resentment on the other person. 

Don’t get me wrong: It’s tempting to try to get your spouse back for the pain they inflicted. But spite won’t heal you. It won’t give you back the time and energy you poured into this marriage. It won’t make the other person act how you want. In fact, going to war during divorce is like drinking poison and hoping your ex dies. They won’t. It’ll just make you—and your kids—sick. 

And it can ruin your chances in court, your family relationships and your finances. If you act hostile, pit your kids against the other parent, party or date before the divorce is final, the judge could award your spouse more money, property or time with the kids. 

So keep the divorce (and your feelings about it) off social media. Don’t send any rude, ugly or relationship-related texts or emails. Don’t talk bad about your spouse in public. It will feel good for a minute, but it’ll do far more damage than it’s worth. When you need to cry and hurt, do that with your team behind closed doors. 

Create a New Picture for Your Life 

Now’s the time to start caring for yourself in ways maybe you never have. So sit with a journal, a cup of coffee and a good friend, and have a dream session. What do you really want? Who do you want to be? What’s something you always wanted to try but were afraid to? 

Maybe now you finally treat your body well. Maybe you paint or weld. Maybe you go back to school, change careers or travel. Whatever inspiring, healthy things spark your interest, pursue them.

Because one day you’ll wake up and the divorce you took all these steps to prepare for will be over. And your life will be full of people and things that bring you joy—because you chose that. 

Get More Support

Once you have a dream session and set clear goals, do one more thing:  Connect with a financial coach  who can help you achieve those dreams by teaching you how to win with money. 

And even on the hard days, remember there is hope. You’ll be amazed at where you go and what you do when you complete this divorce checklist. 

So acknowledge this hard time. Grieve it. Then go be brave, because you’re worthy of love, joy and a full life. And if you’d like to hear some real stories of how other people have worked through divorce, tune into The Dr. John Delony Show where I coach live callers on how to improve their relationships or find the safety they need.

Be well. 

Next Steps to Prepare for Divorce

• Get together a team of legal professionals, a therapist or counselor, and friends for ongoing support through this process.
• Get organized! Pull together important documents, identify your personal property, and get your finances in order.
• Take care of yourself. Grieve, eat nutritious food, and be in community with people you love. It’s time to start building a new picture for your life. Read Building a Non-Anxious Life for more guidance.

Did you find this article helpful? Share it!

About the author

Dr. John Delony

Dr. John Delony is a mental health expert with two PhDs from Texas Tech University—one in counselor education and supervision and the other in higher education administration. Before joining Ramsey Solutions in 2020, John spent two decades in crisis response, walking with people through severe trauma. Now at Ramsey Solutions, John writes, speaks and teaches on relationships, mental health, anxiety and wellness. He hosts The Dr. John Delony Show and also serves as co-host of The Ramsey Show, the second-largest talk show in the nation. In 2022, John’s book Own Your Past, Change Your Future instantly became a #1 national bestseller. You can also find John featured on DailyMailTV, Fox Business and The Minimalists Podcast. Learn More.

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What Is a Financial Affidavit in a Divorce?

How Does a Financial Affidavit in a Divorce Work?

Financial affidavits can vary by state, income levels and financial affidavits, when do you file a financial affidavit, how do you file a financial affidavit, frequently asked questions (faqs).

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A financial affidavit is a sworn and notarized statement of your assets, income, expenses and debts that you must share with your spouse and the court in order to finalize a divorce.

Key Takeaways

• A financial affidavit is a document used to disclose your financial situation to your soon-to-be ex and the courts, before or during divorce proceedings.
• The financial affidavit includes specifics about your income, assets, expenses and debts, as well as information about your dependents, if applicable, and health insurance.
• The court needs the financial information listed on a financial affidavit to rule on any matters such as child support and alimony in a divorce.
• Lying or deliberate inaccuracies on the financial affidavit can lead to substantial fines and even jail time.

In divorce, separation, and family court proceedings, you often will be required to provide the court with financial information. The information, such as income, assets, debts, and expenses, is gathered on a form typically called a financial affidavit. In a divorce, the court needs these details to rule on matters such as child support and spousal maintenance , or alimony.  

The form requires you to calculate your monthly income and expenses. This includes details about different types of income, your employment, how often you get paid, what kind of tax deductions you get, and how much you spend on gas and other utilities. You will also need to lay out your debt obligations and how much you spend per month, in addition to all expenses related to any dependent minor children or prior alimony payments.

Failure to provide accurate information on the financial affidavit may lead to monetary fines and imprisonment.

Without a full and fair financial disclosure, via a financial affidavit, one spouse may waive their right to an asset or income they did not know existed. Lack of accurate disclosure could be grounds for setting aside divorce settlements and the courts want to be sure that such settlements and court judgments remain final. For this reason, courts almost always require a financial affidavit.

Example of a Financial Affidavit in a Divorce

Let’s say you and your spouse decide to get a divorce and you have one minor child. Even if both spouses mostly agree on the terms of your divorce , the court requires that you both complete a financial affidavit, and swear to its truth in front of a notary. That notarized document then becomes part of your court record. 

The information you provide on it becomes a factor in how the court will determine any child support that may be due from one spouse to another, and may also be used to determine maintenance if you and your spouse cannot agree on terms. It may also be used to determine how legal fees may be allocated between spouses.

While most information filed before the courts is a matter of public record, in certain circumstances, financial affidavits may be kept confidential. States have their own rules and procedures about which information can be kept confidential and how.  

State courts determine rules around divorce, so a financial affidavit form and the rules for filing it will vary depending on the state you live in. The form or a template for a financial affidavit is usually provided by the state or jurisdiction where your divorce proceedings take place. 

For example, depending on the jurisdiction a financial affidavit may also be called a financial disclosure affidavit, an annual income worksheet, a financial statement, or sometimes a statement of net worth.

This is what a financial affidavit looks like in the state of New York, for example. If you are going through a divorce , check in with an attorney or your state regulations to see what rules apply to you. 

Some states have different financial affidavit forms—long form and short form—depending on the income of the spouse filing the form. Income thresholds determining which form you need to file also vary by state. For example, a Florida resident making more than $50,000 annually needs to file the long financial affidavit, but if they made less than $50,000 they would need to file the short financial affidavit form. A similar threshold for filing a long financial affidavit form for Massachusetts is $75,000.

Sharing Information With Your Spouse

The financial affidavit should be filed and shared with your soon-to-be ex within a specific time period, which is determined by the courts in your state. For example, in Massachusetts, you must share the financial affidavit you file within 45 days of the start of the divorce proceedings. In Connecticut, spouses must file and share the financial affidavits at least five days before and no more than 30 days before their first court hearing.

Even if you and your spouse have a marital agreement, such as a prenup, postnup or separation agreement , the court has the final say in how your assets are split. While they are necessary for child support cases, the court may require a financial affidavit even if you do not have a child.

However in some circumstances, the courts may allow both spouses to waive the requirement of filing the financial affidavit. This can happen if the divorce is uncontested , or if the spouses file for a simplified dissolution of marriage. Simplified dissolution of marriage is a process where both spouses are in agreement about terms of the divorce and have no minor children. A simple dissolution typically requires fewer forms and paperwork.  

In these instances, if both parties agree to the financial settlement, and there is no request for the court to rule on any permanent financial relief such as child support, alimony, and division of the assets, the court may proceed.  

Once you determine that a financial affidavit is needed, it can usually be found on the website of the court where the matter is pending, or from the clerk in that county.  

In most cases, the state provides detailed instructions for filling out the financial affidavit. Your attorney may also provide the form to you and assist in its completion.

Calculating Your Income and Expenses

For the purpose of filing a financial affidavit, you need to calculate your monthly income and expenses. If you get paid hourly wages or have expenses that are not incurred on a monthly schedule, you would need to convert that to a monthly average.

For example, here’s how that calculation would look like if you got paid by the hour:

Hourly wage x hours worked in a week = Weekly wage

Weekly wage x 52 weeks = Annual Wage

Annual Wage / 12 months = Average Monthly Wage

Similarly, if you get a biweekly paycheck , your average monthly income look like this: 

Average monthly income = (Biweekly amount x 26 weeks) / 12 months

You will need to make similar calculations for monthly expenses.

Documents Required To File a Financial Affidavit

In order to complete the form, you will need to attach certain documents in support of the income and expenses you mention in the financial affidavit. Required documents include:

• Recent pay stubs and Form W-2s
• Income tax returns
• Bank and credit card statements
• Documents pertaining to any other assets or debts you may have

Different states may have different rules regarding documents you need to attach with your financial affidavit. For example, Florida requires six months of pay stubs while Minnesota requires the most recent month’s pay stub, and three months’ pay stubs if possible.

If the court is relying on your financial affidavit to make any ruling, they will take into account your income and any deductions, your debts and liabilities, your assets (including real estate , personal property, and financial assets ), the assets of your children, and your health insurance information.

What are financial statements in divorce?

A financial statement in divorce is another term for a financial affidavit. It directs you to lay out your financial situation—including your assets, income, debts, and obligations—to both the court and your spouse. What the form is called will vary based on jurisdiction. These forms are needed in nearly all circumstances, however may occasionally be waived where the court is not ruling on any financial issue, such as alimony, asset division , child support or legal fees.

How do you fill out a financial affidavit for divorce?

When completing a financial affidavit, you must provide information as indicated on the court-provided form. Typically, a financial affidavit will ask you to provide your income , assets, expenses, debts and liabilities, and health insurance information. You would also need to attach documents like pay stubs and bank statements. After you provide the information, you must certify its truth in front of a notary public, lawyer, or court clerk.

Can a divorce go through without financial settlement?

A financial settlement is typically part of a bigger marital settlement agreement in which the couple agree about their rights and obligations after the divorce. This marital settlement agreement may include provisions that speak to child support and custody, alimony, and division of property. If you and your spouse do not agree on the financial issues, then a trial will be needed and a judge will make a ruling.

Connecticut Judicial Branch. " Self-Represented Parties Information Series—Filling Out and Filing a Financial Affidavit Short Form. "

West Virginia Judiciary. " Financial Statement. "

Florida Courts. " Instructions For Florida Family Law Rule Of Procedure Form 12.902(C), Family Law Financial Affidavit. '

California Courts. " How to Set Aside (Cancel) a Family Law Order. "

Arizona Superior Court in Pima County. " Financial Affidavit ," Page 2.

Minnesota Judicial Branch. " Instructions for Filling Out the Parenting / Financial Disclosure Statement. "

New York Courts. “ Financial Disclosure Affidavit (Short Form) .”

Florida Courts. " Instructions For Florida Family Law Rule Of Procedure Form 12.902(C), Family Law Financial Affidavit (Short Form.) "

Florida Courts. " Instructions For Florida Family Law Rule Of Procedure Form 12.902(C), Family Law Financial Affidavit (Long Form.) "

Mass.gov. " File the short financial form ."

Judicial Branch, State of Connecticut. " Do It Yourself Divorce Guide ," Page 29."

Florida Courts. " Florida Family Law Rules of Procedure ," Page 34.

Florida Courts. " Florida Family Law Rules of Procedure ," Page 73.

Minnesota Judicial Branch. " Instructions for Filling Out the Parenting / Financial Disclosure Statement ," Page 4.

Illinois Courts. " How To Complete A Financial Affidavit (Family & Divorce Cases) ."

Florida Courts. " Florida Family Law Rules of Procedure ," Page 73-74.

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Divorce Survival Guide: Submitting A Financial Declaration

After you have filed and served your spouse with divorce papers, the clock on your proceedings officially begins ticking. If you have not done so already, you need to begin the legwork of gathering important documents and evidence to help build your side of the case.

One of the first (and arguably most important) tasks in the divorce process will be filling out your financial declaration, which provides the court an overview of your monthly income, bills and general expenses.

Each party is required to submit their own affidavits, and the judge will use these documents to determine a variety of issues in the case.

It is crucial that you are upfront and honest with your financial declaration, as omissions — whether intentional or accidental — can result in damage to your credibility, court-issued penalties or financial obligations you cannot afford.

An overview of financial declarations

Like most aspects of divorce, there will be differences in the forms, process and even what it’s called depending on your location — you may have to submit a Financial Declaration, Financial Affidavit, Statement of Net worth or some other variation based on where you live.

No matter what your state calls it, however, the form boils down to the same purpose — giving the court an accurate overview of your monthly income and expenses via an itemized list of earnings vs. expenditures.

This document will be used to determine how a number of issues in your case are resolved, such as the need / ability to pay spousal support, child support, attorney fees and property division.

Due to the extensive list of areas this document affects, it is imperative that you pay close attention to even the most minor of details when you are filling out your financial declaration .

First of all, the financial declaration is considered a sworn statement under penalty of perjury.

If it is discovered that you deliberately mislead the court regarding your financial status — perhaps you owned an asset you didn’t think your wife knew about — it can result in major penalties ranging from a simple slap on the wrist to jail time depending on the severity of the deceit and how it impacted the case.

Even accidental omissions or misrepresentations on your financial declaration can affect your divorce, resulting in lost credibility with the judge, inequitable distribution of property or support obligations that are more than you can handle.

For this reason, it is crucial that you gather documentation or supporting evidence to verify any expenses you claim.

It may be extremely tedious to track down everything you need, but a common reason many people run into trouble on their financial declaration is due to making wild guesses instead of taking the time to confirm that the information is accurate.

Gathering documents

What you need to include in your financial declaration will depend on your individual circumstances, so ask your attorney for a complete list based on your situation.

However, there are several common documents that you can compile early in the case to make your life a little easier when it comes time to fill out your financial declaration. These include:

Tax returns — you will need copies of both federal and states tax returns for at least the previous two years before the divorce was filed. If you own a business, you will likely need to provide copies of your business’ returns as well.

Pay stubs — gather pay stubs for the previous 12 months from any job you may have held, both full- and part-time.

Financial statements — this includes statements from checking and savings account, credit cards, investment accounts, retirement accounts, etc.

Real estate information — make copies of any and all real estate documents that include the value of your home, such as the most recent appraisal or refinance documentation.

Loan information — this includes auto and personal loans that have been opened or closed within the past 12 months of filing.

Bills — collect several months’ worth of bills, including but not limited to, utilities, cable, Internet, cell phone, medical, day care, pet care, car repair, etc., to help determine an accurate figure for your average monthly expenses.

The purpose of gathering all of this documentation is not only to ensure you are truthfully representing your monthly income and expenses, but to also provide the ability to back up your claims if the opposing party questions the accuracy.

Unfortunately, this is one area where your attorney can only help you so much — they do not have an inside look into your earnings and expenditures over the past several years.

Cordell & Cordell understands the concerns men face during divorce.

Filling out your financial declaration.

While the forms for each state will vary, they are typically broken down into categories / sub-categories that will include a section for basically any expense you can incur.

For example, compare the Illinois Financial Affidavit to the South Carolina Financial Declaration .

The layout of the forms may be different, but both require a lot of time, thought and math to be put into verifying where your money is coming from and how it is being spent.

When it comes to your income, not only must you report your paycheck, you also need to calculate how much overtime, bonus money, tips, commission, investment / retirement income, etc., that you average each month.

Since many of these sources are not regular installments like your salary, you will likely need to go back through several years’ worth of documents and average what you made per month over that time to come up with your monthly figure.

Your attorney can provide you with more information on the best practices for reporting variable income in your state.

As for expenses, you are able to itemize essentially anything you could possibly spend your income on, ranging from essential bills like a mortgage and utilities to more trivial matters like entertainment.

You want to ensure you fill both categories out thoroughly and do not forget to leave out any details, as anything you forget to add may count toward your “expendable” income, possibly opening yourself up for larger support payments.

Gathering as much supporting documentation as possible will also help in case the judge or opposing party feels you are over or understating your income and expenses.

It cannot be stressed enough how critical it is to file an accurate financial declaration at the onset of your case.

Due to the number of important issues that your financial declaration will impact, you want to be absolutely certain every penny, nickel and dime are accounted for.

While your attorney can assist with filling out the forms properly and advise on how to report certain types of income and expenses, they rely on you to report accurate information.

Your attorney has experience presenting information in the best possible light; however, the worst thing you can possibly do is try to hide something only to have it catch your attorney off guard in a later court hearing.

Mat Camp is a former Lexicon Services Online Editor, who focused on providing a comprehensive look into all aspects of the divorce experience. On MensDivorce.com, he concentrated on issues, such as parenting time, custodial rights, mediation, the division of assets, and so much more.

Mr. Camp used the wealth of experience of Cordell & Cordell attorneys to bring tangible answers to reader questions in Ask a Lawyer articles, as well as offer a step by step process through the divorce experience with Cordell & Cordell Co-Founder and Principal Partner Joseph E. Cordell in Divorce 101: A Guide for Men .

Mr. Camp used thorough research to highlight the challenging reality that those who go through divorce or child custody issues face. He helped foster the continued success of the Men’s Divorce Survival Guide, the Men’s Divorce Podcast , and the Men’s Divorce YouTube series “ Attorney Bites .”

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Financial Statements in Divorce/Custody Cases: The Long Form vs. The Short Form and How to Complete the Forms Correctly

In divorce and custody cases, there are two types of financial statements. The first is the Short Form Financial Statement ( Short Form Available Here ) and the second is the Long Form Financial Statement ( Long Form Available Here ). If you are filing for custody or divorce, it is likely you will need one form or the other form. If you have an attorney, he or she is going to tell you the importance of the forms and will likely help you complete the form and review it with you before it is filed. But if you do not have an attorney, financial statements can be confusing and completing them a daunting task. Many prospective clients have the same questions: What is a financial statement? Which financial statement do I need to fill out? How do I correctly fill the form out? Let’s talk about it.

What is a Financial Statement?

A financial statement is a form required to be filed with the Court in cases involving child support or alimony. A financial statement is required to be filed with an initial Complaint or Answer. Which financial statement you file depends on the underlying facts of your case. Financial statements tell the Court about your income and your/the child(ren)’s expenses.

Which Financial Statement do I need to fill out?

The type of financial statement you must file depends on the type of case you are filing, the type of relief you are requesting, and the parties’ incomes. In general, if you are filing for custody/child support, or a divorce where alimony is not being requested, you will file a Short Form Financial Statements. Short Form Financial Statements are used when the Maryland Child Support Guidelines will be applied in a case.  Long Form Financial Statements are used when there is a divorce proceeding where alimony is requested or in divorce/child support cases that are “over the guidelines”, meaning that the combined gross income of the parties (spouse/spouse or parent/parent) is over $30,000 per month (or $360,000 in a year). If you are unsure of the other party’s income and are not requesting alimony, you can always start with a Short Form Financial Statement and then amend it later to a Long Form Financial Statement, if necessary.

How do I fill out the Financial Statement?

Short Form Financial Statement :

Short Form Financial Statements are much easier and, well, shorter. Since the Short Form Financial Statement is used when the Maryland Child Support Guidelines will be applied (which is in all cases that are not above the guidelines), the only information required is what is necessary for the Court to run the guidelines. There are 8 potential numbers you will need to provide the court:

Income: This is your gross monthly income. It includes all sources of income, including income from any job(s), self-employment, rental income, disability benefits, retirement/pension income, or any other regular monthly income. It does not include public assistance benefits such as food stamps or other welfare assistance. There is also separate line for alimony income, so do not put it here.

Child Support I am paying for my other child(ren) each month: this is for children not subject to this case. So, for example, if you have another child with a parent not in the case and you are paying them regular support. While the form really anticipates court-ordered child support payments from another case, you can also list non-court ordered support for other children, but you will need to be able to show/prove to the court that you are actually making those payments and the court will have discretion in how to consider that amount being paid since it is not court-ordered.

Alimony I am paying each month:  If you are court-ordered to pay alimony to another person either in this case or another case, you will list the monthly amount here.

Alimony I am receiving each month: If you are receiving court-ordered alimony from another person either in this case or another case, you will list the monthly amount here.

Monthly Health Insurance Premium: The amount here should be for the children only. To determine the amount for just the children, find your benefits plan and take the monthly premium for the plan you have (family or employee + children) and subtract the self-only premium amount. That will give you what it costs to have the children on the plan.

Work-related monthly childcare expenses: This is for daycare or before/after school care expenses that you incur for the child(ren) due to your work. If you are a stay-at-home parent, you will not have work-related childcare expenses. However, if you work from home and your child(ren) go to daycare or before/after care so you are able to complete your job, those expenses can be included, even though you are home. This line item does not include babysitting or care for the children when you are not working.

Extraordinary monthly medical expenses: This is for regularly, recurring medical expenses for a child per month. It should not include things like yearly physicals/check-ups, but should include expenses for co-pays for a therapist if your child sees a therapist regularly, or monthly trips to an allergist, or prescribed monthly medication (like an ADHD or asthma medication).

School and Transportation Expenses: If your child attends private school, the monthly tuition will go here. If you pay a fee to have bus transportation, that would be included here. If the school has recommended private tutoring, such fees could also be included here (if they are regular and ongoing).

Long Form Financial Statement :

The Long Form Financial Statement is much more complex. Again, this is for when alimony is requested or if the combined incomes of the parents is over $30,000. The Long Form Financial Statement is designed to give the Court a snapshot of what your income and all expenses are per month, for you and the children (if there are children).

The first 5 pages of the Long Form Financial Statement asks for your monthly expenses (for you and any children). Many of the expenses, such as rent or mortgage, are already monthly amounts. In that case, you just need to list the monthly amount that you pay. For expenses that are not monthly, such as water bills, car repairs, vacations, etc., you should try to average those expenses to get a monthly amount. If your water bill is for 3 months, take the last two water bills (at least 6 months total), add them together, and then divide by 6 to get the average monthly amount. For vacations, you can look at your past vacation expenses and average them out over a year, then divide that by 12 to get an average monthly amount. Remember that the Court is using this to determine your average monthly expenses. So, if you generally take 2 weeks of vacation a year, and each week you spend $3,000 – then your average monthly expense would be $500. However, if last year you took a once-in-a-lifetime month-long trip to Europe and spent $20,000, that would not be the best example of your average vacation expenditure and looking to previous years will likely provide a more accurate picture. It is important you do not just “guess” at your spending; you want to pull your bills/credit and debit card transactions to try and get the most accurate numbers possible.

Since there is space for both “self” expenses and “children” expenses for each expense, there is going to be some overlap. For example, most people do not shop separately for food for children or food for themselves – it is just all on the grocery bill. You will need to use your best judgment here. If your total monthly food expenses are $1,000 and it’s a parent and three (3) children, a majority of food costs could be attributable directly to the children. Some attorneys will have you take the total bill and divide it by the number of people and then total it up appropriately (in the above scenario, that would be $250 for the person filing out the form and $750 for the children). There is no exact answer for this, because older children eat significantly more than younger ones so the proportions will always be subject to interpretation, so use your best judgment in dividing up those expenses that are not easily separated out.

For expenses like camp or tuition, those would only be for the children, so there should not be an amount under the “self” category – rather the entire expense goes to the children. Again, camps are usually not a “monthly” expense. If you have 2 children and they each typically go to 4 weeks of camp in the summer, add up the total costs for camps over the summer and then divide that by 12 to get the average monthly cost for those camps.

If there are expenses you do not have, you will just leave that section blank.

For the Income Statement – currently on page 5 of the Long Form Financial Statement –  you will need to put your gross income from your job/self-employment and then list the deductions. If you are paid monthly and your income does not vary, you can just your most recent pay stub to figure out your monthly income and tax deductions. If you’re paid twice per month and your income does not vary, you will need to double your paycheck to determine the monthly amount. If you are paid every two weeks and your income does not vary, there are 26 pay periods in a year, so take your paycheck, multiply everything by 26 and then divide by 12. If your income varies (if you are in sales, for example, and get commission on top of a base salary OR if you are hourly and work more in some months than others), it’s important to find the most accurate information. If it is early in the year, you can use your last year W2, as long as you worked at your job for an entire year and maintained the same salary/rate for the current year, to determine your monthly income. If your income changed, or if it is more than a few months into the current year, the best thing to do is take your most recent pay stub and use the “Year to Date” payments to figure out what the average monthly amount is. So, if you are paid bi-weekly and it is halfway through the year, use your 13 th pay stub, take the gross amount of your “year to date” earnings and divide it by 6 – that will give you the average amount you earn per month. You need to be careful if you received a bonus, since while that should be included in income, is not an ongoing amount you will get. If you received an annual bonus and you typically get one per year – you can separate that amount from your other earnings and divide it by 12 to get a monthly amount. Then, once you get a regular monthly amount, you can add the bonus amount to that for your total monthly income. You will also need to list any other forms of income (2 nd job, rental income, disability income, alimony, or any other income streams).

For the Assets and Liabilities Section – You will want to use your most recent statement for each asset/liability. If you do not have a statement for an asset value, such as for your house, you can go online and use Redfin or Zillow to get an idea. If you have a recent appraisal, you should use that number. For automobiles, Kelley Blue Book will give you a value if you put in your vehicle’s information. For bank accounts, use the most recent bank statement you received. Remember that the liabilities (such as the mortgage and credit cards) are the total amounts owed, not what the monthly payment is.

There may be things that need explanation in your Financial Statement. You should feel free to put footnotes and attach them to your financial statement. For example, if you happen to win the lottery one year, that can count as income. However, it is not something that happens regularly (unless you are really, really lucky). So, if you won $20,000 in the lottery in 2023, you would put $1,666 on the “Other Gross Income” section of the income section. You could then put a footnote declaring that you won $20,000 from the lottery. That way you have disclosed the income to the Court, but the Court (and the opposing party/counsel) know that the $1,666 in additional income is not something you anticipate moving forward.

With either a Long or Short Form Financial Statement, you will want to keep all the documentation you use to complete your Financial Statement so you can prove the expenses to the Court and the opposing party/counsel. It is incredibly important that your financial statement is accurate as if your matter goes to trial, the opposing party/their attorney will be able to question you about your expenses/income and how you came up with those numbers. If your numbers are inaccurate, it could hurt your credibility. Additionally, for the Long Form Financial Statement, the Court relies heavily on it to determine the reasonable expenses for your children (or you, if alimony is requested). If the information is not accurate, the Court may not be able to determine what your/your children’s actual monthly expenses are and that could impact any potential alimony/child support award.

Financial statements are an extremely important part of any child support or alimony case. If you are filling out a financial statement and do not understand parts, or have questions, you should meet with an experienced family law attorney who will be able to provide you guidance based on your specific circumstances to ensure you accurately complete the form. Weinberg & Schwartz, LLC is currently accepting new clients and one of our attorneys will be happy to meet with you to discuss your needs.

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[email protected], sworn financial statement in a divorce.

By Carl O. Graham

Overview - Sworn Financial Statement & Disclosures

There is no playing “hide the ball” in a Colorado dissolution of marriage proceeding; each party’s financial lives are effectively open books to the other. Without even waiting for a request, within 42 days of service of a petition for dissolution or a post-decree motion affecting financial matters, each spouse is required to provide a sworn financial statement and accompanying financial disclosures, and as a follow-up, either of them can seek additional discovery.

The Sworn Financial Statement and supporting asset schedules are a comprehensive itemization of the following:

• Assets (accounts, property, vehicles, insurance policies, etc)

Additionally, when providing the sworn financial statement, each party is required to provide exhaustive financial disclosures. A sample of those disclosures are:

• Tax returns
• Insurance policies
• Bank Statements
• Loan documents

Providing disclosures is mandatory, even if the parties have agreed to everything. And failure to do so will delay the case as the court cannot enter orders without them.

LEARN MORE with the following in-depth discussion of the sworn financial statement and accompanying mandatory financial disclosures.

In Depth - Sworn Financial Statement & Disclosures

While spouses may have money secrets during marriage, in the dissolution of marriage process both are required to disclose all assets and debts. In short, that hidden credit card you kept from your spouse must be disclosed, along with that secret “rainy day fund” you’ve been saving.

Divorcing spouses owe each other a special duty: “Family members stand in a special relationship to one another and to the court system.” C.R.C.P. 16.2(a).

The Colorado Rules of Civil Procedure make clear that there can be no “hiding the ball”, or the gamesmanship people may think exists in other types of cases, and a spouse has to disclose relevant information even if the other spouse did not think to ask for it:

“Parties to domestic relations cases owe each other and the court a duty of full and honest disclosure of all facts that materially affect their rights and interests and those of the children involved in the case. The court requires that, in the discharge of this duty, a party must affirmatively disclose all information that is material and relevant to the resolution of the case without awaiting inquiry from the other party. ”

C.R.C.P. 16.2(e)(1). (Emphasis added).

Sworn Financial Statement

The starting point for the mandatory financial disclosures in Colorado is the Sworn Financial Statement , a multi-page form where each party is required to list his/her income, expenses, assets and debts. This statement is both filed with the court, as well as provided to the other party. For the sake of simplicity, references to the Sworn Financial Statement in this article mean both the main questionnaire and the supporting asset schedules.

The Colorado Rules of Civil Procedure provide:

“A party shall, without a formal discovery request, provide… a completed Sworn Financial Statement and (if applicable) Supporting Schedules… within 42 days after service of a petition or a post decree motion involving financial issues.” C.R.C.P. 16.2(e)(2).

The sworn financial statement needs to be provided to the other party (or attorney, if any), and filed with the Court. C.R.C.P. 16.2(e)(6), without waiting for a request.

El Paso County has a standard order for domestic relations cases. FCF 400 Domestic Relations Case Management Order , states that parties should bring their sworn financial statements to the Initial Status Conference (ISC). In reality, if the financial statement is filed prior to the ISC, this obligation is satisfied, and if not filed in advance, the court will invariably give the parties a couple more weeks to comply.

Sworn Financial Statement Form

The Colorado Supreme Court has the JDF 1111 Sworn Financial Statement in both PDF and  PDF and MS Word versions on its web site. And most cases will also require the JDF 1111SS, Sworn Financial Statement Supporting Asset Schedules ( PDF , MS Word ). Pro se parties (those who do not have counsel) can use these fill-in-the-blank forms, though most attorneys have a computerized version of them.

At Graham.Law , we use dedicated software - Family Law Software , - to automate the process. It ensures everything is presented exactly as required by the Court, performs the calculations automatically, and makes sure we don’t miss anything. And the software integrates the sworn financial statement with other tools, including an asset-debt spreadsheet, child support worksheet, etc.

Certificate Of Compliance

When completing the sworn financial statement, a party will need to review his/her underlying financial documents to complete it properly. Those documents, as well as a comprehensive laundry-list of other financial disclosures, have to be provided to the other party.

Unlike the sworn financial statement, these accompanying financial disclosures are NOT filed with the court, just provided to the other party. C.R.C.P. 16.2(e)(6).

Instead, the Colorado Rules of Civil Procedure require each party to certify to the Court that the disclosures have been provided to the other party as required:

“A Certificate of Compliance shall accompany the Mandatory Disclosures and shall be filed with the court. A party's signature on the Certificate constitutes certification that to the best of the signer's knowledge, information, and belief, formed after a reasonable inquiry, the Mandatory Disclosure is complete and correct as of the time it is made, except as noted with particularity in the Certificate of Compliance.” C.R.C.P. 16.2(e)(7).

That certificate of compliance is the JDF 1104, Certificate of Compliance with Mandatory Financial Disclosures ( PDF , MS Word ), and it must be filed with the Court. This form, in essence, says “Judge, even though they are not filed with you, swear that I provided the other party with a copy of the following documents…”

What Disclosures Does Colorado Require?

To say “almost everything” would not be an unfair answer to this question. The Rules of Civil Procedure has a Form 35.1 which has an exhaustive list of everything required. A small sample of the required disclosures:

• 3 years of tax returns
• Bank, credit card, investment and retirement statements
• Insurance documents
• Real estate documents
• Business records

These disclosures closely mirror the information each party is required to provide on the Sworn Financial Statement. Think of the financial statement as the summary of the assets & debts, and the supporting financial statements as the documents proving that the summary is accurate.

Updated Financial Disclosures

The court is required to divide the marital estate based upon its value at dissolution. However, as the disclosures are due within 42 days of the case starting, and it may take 6-9 months for a case to be finalized, they may be out-of-date by the time the case is being finalized.

While there is no set rule as to how current the disclosures have to be, most of the time a judge will want to see numbers that are within the past 2-3 months. And if both parties have attorneys who are preparing for trial, we will usually have disclosures dated within the past month.

So the disclosures provided at the start of the case are merely the first round - they will usually need to be updated before the end of the case unless your case was a quick, uncontested one.

Think of the initial disclosures as just the first round

One Party Not Cooperating To Provide Disclosures

If one party has not provided his/her disclosures, there are a number of remedies the other party has, including:

• Motion to compel
• Adverse presumption against the non-compliant party
• Exclusion of evidence
• Contempt of court
• Attorney’s fees

These remedies are not exclusive, and sometimes multiple remedies may be appropriate. Discuss how best to proceed with your lawyer if the other side is not cooperating.

No Financial Disclosures = No Divorce

The sworn financial statement is probably the single most important document a litigant provides to the domestic relations judge. Going into a contested hearing, even before any evidence is presented the judge reviews the financial statements to get a basic understanding of the parties’ finances. And if the parties have resolved all of their issues and submitted a separation agreement to the court, the judge will review the sworn financial statements to make sure the separation agreement is fair to both spouses.

The sworn financial statement is mandatory, and domestic relations judges take that requirement seriously. Even if both parties know each other’s finances, the court will not issue a decree of dissolution until financial disclosures have been submitted. And if the trial court did issue orders without the mandatory financial disclosed, they can be set aside.

The failure to provide mandatory financial disclosures resulted in the Court of Appeals upholding a trial court setting aside the parties’ financial settlement in a divorce where the wife alleged that the husband had misled her. In re Marriage of Seely , 689 P.2d 1154 (Colo.App. 1984) .

Before determining child support, C.R.S. 14-10-115(8)(d) requires the Court to "review the adequacy of child support orders negotiated by the parties as well as the financial affidavit that fully discloses the financial status of the parties as required for use of the guidelines and schedule of basic child support obligations." In a case where the trial court modified support without either party's financial disclosures or even a child support worksheet, the Court of Appeals reversed.

“we conclude that the failure to submit to the court the financial information necessary to review a child support agreement and the failure of the trial court to conduct such a review renders the resulting order subject to being set aside”

In re: Marriage of Smith , 928 P.2d 828, 831 (Colo.App. 1996) .

Finally, offering the other party the opportunity to review the mandatory disclosures, without actually providing them, does not comply with the rule. In I n re: the Marriage of Hunt , 2015 COA 58 , the parties signed an agreement stating that the value of the business set aside to the husband was $250,000.  The wife waived the right to a business appraisal first, and while the husband had not provided her with the business records, she also waived the right to inspect them. Before the court adopted the agreement, the wife had changed her mind, and she asked the trial judge to set aside the agreement. The trial judge nonetheless adopted the agreement, and the wife appealed. The Court of Appeals reversed, finding that merely making available the mandatory disclosures was not sufficient - they actually have to be provided.

Note, however, that a court will not let one party deliberately delay the case simply by failing to provide disclosures. As indicated above, there are remedies against the non-compliant party, and ultimately, if one spouse is not cooperative, the court may well permit the other spouse to proceed even without the required disclosures.

The sworn financial statement, and the companion financial disclosures are exhaustive. To make sure you comply with the deadlines, at Graham.Law we will provide you with the blank questionnaire and instructions immediately upon being retained. And then our paralegals start working with you to complete them. It will typically take a client hours just to gather the information, and then once our office has the disclosures, it takes time to go back & forth to make sure we have everything.

Do You Need A Family Law Attorney In Colorado Springs?

U.S. News & World Report has named Graham.Law one of the Best Law Firms in America . And our family law attorneys have years of experience helping clients navigate the Colorado family law system. We know Colorado divorce & family laws inside and out, from basic child support modifications to multimillion dollar marital estates. And we do, of course, know how to complete and to argue sworn financial statements.

For more information about our award-winning El Paso County family law firm , call us at (719) 630-1123 to set up a free consult, or click on:

• Why Graham.Law for your Colorado Family Law Case . Learn about the benefits of hiring divorce specialists to help you.
• Our Colorado Springs Family Law Team . The great attorneys and paralegals at Graham.Law.
• Contact Us . Reach out to see if we can help with your Colorado Springs divorce or family law case.

Colorado family law. Period.

Financial Planning and Budgeting

Divorce financial statement guide: how to fill out.

Key Takeaways:

• Accurately filling out a financial statement is crucial for a fair and equitable divorce settlement .
• Mistakes or misrepresentations in the financial statement can lead to penalties and damage to your credibility.
• Gather supporting documentation to verify the information provided in the financial statement.
• Be honest and thorough while filling out the financial statement to provide an accurate snapshot of your financial situation.
• The financial statement helps the court make decisions regarding support, property division, and attorney fees .

Why is the Financial Statement Important in Divorce?

The financial statement is like a financial snapshot of your life during the divorce process. It is an essential document that provides transparency and allows the court to make informed decisions based on your financial situation.” – Family Law Attorney , Jane Wilson

What Documentation is Required for the Financial Statement?

• Tax returns for the previous years: These help provide a comprehensive view of your income and deductions.
• Pay stubs: These documents show your regular income and any additional earnings.
• Financial statements from bank accounts, credit cards, and retirement accounts: These statements offer an overview of your assets and liabilities.
• Real estate information: Documenting property ownership and any mortgages or loans connected to it is essential.
• Loan details: If you have any outstanding loans, such as a car loan or student loan, gather relevant information about those debts.
• Bills: Collect bills for utilities, insurance, childcare, and other regular expenses to accurately represent your monthly financial obligations.

Tips for Filling Out the Financial Statement

• Calculate your income carefully : Include all sources of income and average variable income over a specific period. This ensures that you provide an accurate representation of your financial situation.
• Thoroughly document your expenses : Include all necessary categories and be detailed in recording your expenses. Additionally, utilize averages for expenses that are incurred irregularly to provide a comprehensive overview.
• Gather supporting documentation : It is crucial to gather all appropriate documentation to support the information you provide in your financial statement. This includes tax returns, pay stubs, financial statements, and bills. Having this documentation ready will help verify the accuracy of the information you provide.
• Avoid double-dipping : Ensure that you list your expenses only once. Double-dipping can lead to inaccuracies and misrepresentations, which may have consequences during the divorce proceedings.
• Designate separate property accurately : If you have separate property that is not subject to division, make sure to accurately designate it in your financial statement. Provide all necessary attachments or documentation to support the separate property claim.

Understanding the Categories in the Financial Statement

1. personal information, 2. gross weekly income from all sources, 3. itemized deductions from gross income, 4. adjusted net weekly income, 5. other deductions from salary, 6. net weekly income, 7. gross yearly income from the prior year, 8. weekly expenses, 10. liabilities.

How to Calculate Income and Expenses in the Financial Statement

Common Mistakes to Avoid in Filling Out the Financial Statement

• Not including all income sources: It is essential to report all sources of income, including salary, self-employment income, rental income, and any other financial resources. Failure to include any income sources can lead to an inaccurate representation of your financial situation.
• Not accurately documenting expenses: Be meticulous in documenting your expenses and include all necessary categories. Ensure that you account for regular and irregular expenses to provide an accurate overview of your financial obligations.
• Double-dipping expenses: Avoid listing the same expense multiple times in different categories. It is important to report each expense only once to avoid inflating your financial obligations.
• Not providing supporting documentation: Failing to include the necessary supporting documentation can raise doubts about the accuracy of your financial statement. Gather and attach all relevant documents, such as bank statements, tax returns, and bills, to back up the information provided.
• Incomplete or incorrect information: Take the time to carefully review and fill out each section of the financial statement. Incomplete or incorrect information can lead to misunderstandings, delays, or even legal consequences.
• Failing to disclose separate property: It is crucial to disclose all separate property, such as assets acquired before the marriage or through inheritance. Failure to do so can impact the division of assets during the divorce proceedings.

Importance of Accuracy in the Financial Statement

Why accuracy matters, the consequences of inaccuracy.

“An accurate and detailed financial statement is the cornerstone of a fair and equitable divorce settlement.

Tips for Ensuring Accuracy

• Take your time: Take the necessary time to gather all the required documents and information before filling out the financial statement.
• Be meticulous: Double-check all the numbers, figures, and supporting documentation to ensure accuracy.
• Provide complete information: Include all relevant details about your income, expenses, assets, and liabilities. Leaving out information can lead to misconceptions or misunderstandings during the divorce proceedings.
• Seek professional assistance: If you’re unsure about any aspect of the financial statement or need guidance, consult with an experienced family law attorney who can provide expert advice and ensure accuracy.

Seek Professional Guidance for Filling Out the Financial Statement

Advantages of seeking professional help.

How do I fill out a financial statement for divorce?

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Understanding the financial implications of divorce can be daunting. Christopher, our Financial Strategist, makes it accessible and manageable. He offers strategic insights into financial planning, asset division, and budgeting during and after divorce. Christopher’s guidance is invaluable for anyone looking to navigate the financial challenges of divorce with confidence and clarity.

Navigating Retirement Planning After Divorce

What Are California's Divorce Financial Disclosure Requirements?

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Explore strategies for retirement planning after divorce to secure your financial future and rebuild your nest egg effectively.

• Divorce rates among Americans over 50 have doubled since the 1990s.
• Rebuilding a nest egg and securing a stable financial future after divorce requires proactive retirement planning .
• Assessing post-divorce expenses is crucial for setting realistic retirement goals .
• Maximizing retirement contributions through 401(k)s and IRAs accelerates rebuilding retirement savings.
• Understanding the division of assets , such as retirement accounts and inheritances, is vital for an equitable outcome.

Strategies for Building Retirement Savings

Contributing to a 401(k), opening an ira.

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Catch-Up Contributions

Consulting a financial advisor.

Division of Retirement Assets in Divorce

Handling Inheritance in Divorce

The Role of an Estate Specialist

Consulting an estate specialist can provide invaluable guidance on dividing inherited assets acquired during the course of a marriage. These professionals possess a deep understanding of inheritance laws and can help ensure a fair division of assets during divorce proceedings.

Updating Financial Plans Post-Divorce

“Updating your financial plans after divorce is crucial to ensure that your hard-earned money goes where you want it to go. Don’t forget to review your financial plan , update your will , and update the beneficiaries on your financial accounts.”

Seeking Professional Help

“A financial advisor and an estate specialist are valuable resources when navigating retirement planning after divorce . Their expertise and guidance can help individuals create a comprehensive retirement plan and navigate the complexities of dividing assets.”

Certified Financial Planners: Going Beyond Financial Advice

Dividing inherited assets: guidance from an estate specialist, key considerations when seeking professional help.

Secure Your Financial Future

Creating a new retirement plan, utilizing savings options.

Seeking Professional Guidance

“Seeking professional guidance can provide you with the expertise and knowledge necessary to secure your financial future after divorce.”

Building a Strong Financial Foundation

Importance of assessing expenses.

Assessing expenses accurately is crucial for creating a retirement plan that provides financial security and peace of mind. By taking the time to evaluate the necessary costs and make informed decisions, individuals can set realistic goals and make the most of their retirement savings.

Retirement Expenses Worksheet

Maximizing Retirement Contributions

401(k) Contributions

Ira contributions, catch-up contributions, the role of qualified domestic relations order (qdro).

Key Points:

• A Qualified Domestic Relations Order (QDRO) is a legal document that specifies the division of retirement assets in a divorce.
• Retirement funds, such as 401(k)s and IRAs, are considered marital property and subject to division.
• A QDRO outlines the details of the division, including the percentage or amount each spouse will receive.
• Working with legal professionals experienced in family law and QDROs is crucial to ensure compliance and an equitable division of retirement assets.

Considering Social Security Benefits

Benefits of ex-spousal social security benefits.

• Additional Income: By claiming ex-spousal benefits, you can supplement your retirement income and have more financial flexibility.
• No Impact on the Higher-Earner’s Benefits: The ex-spousal benefits you receive will not affect the higher-earning spouse’s benefits or reduce their potential retirement income .
• Preserves Your Own Benefits: Claiming ex-spousal benefits does not impact your own Social Security benefits . You can still receive the full amount you are entitled to based on your work history.

“Maximizing Social Security benefits, including ex-spousal benefits, can significantly impact your retirement income. By incorporating these benefits into your financial plan, you can enhance your financial security and improve your overall retirement experience.” – Jane Smith, Certified Financial Planner

Mitigating Risks with Professional Guidance

“Working with a financial advisor and an estate specialist can provide the expertise needed to navigate the challenges of divorce and secure a stable financial future.”

Benefits of Professional Guidance:

• Access to expert knowledge and insights in retirement planning strategies
• Personalized advice tailored to individual goals and circumstances
• Assistance in navigating complex legal and financial processes
• Guidance in dividing inherited assets during divorce
• Exploration of alternative retirement planning strategies and solutions
• Peace of mind knowing that the financial future is in capable hands

Case Study: The Importance of Professional Guidance

Rebuilding Retirement Savings

Investment decisions.

Seeking professional guidance from a certified financial planner (CFP) can be beneficial when developing a comprehensive retirement strategy. A CFP can help analyze financial circumstances, set realistic retirement goals , and recommend suitable investment options to rebuild retirement funds.

Tracking progress

Embracing financial independence, navigating the impact, strategic financial choices, reaching long-term financial security.

After a divorce, what is important for retirement planning?

What are some strategies for building retirement savings, how are retirement assets divided in divorce, how should inheritance be handled in divorce, what should be updated in financial plans after divorce, should i seek professional help for retirement planning after divorce, how can i secure my financial future after divorce, what is important to consider when assessing expenses for retirement planning after divorce, how can i maximize my retirement contributions, what is the role of a qualified domestic relations order (qdro) in divorce, can i receive social security benefits after divorce, how can professional guidance mitigate risks during retirement planning after divorce, how can i rebuild retirement savings after divorce, how can i embrace financial independence after divorce.

Allison is the driving force behind our content, ensuring that every piece of information we share is both empowering and insightful. With a keen eye for detail and a deep understanding of the divorce process, Allison curates content that speaks directly to the needs of our audience. Her expertise ensures that How Get Divorce remains a trusted and authoritative source of guidance for those navigating the difficult waters of divorce.

Wade through the layers of California's divorce financial disclosures to unravel the intricate web of assets and debts that shape divorce settlements.

Deciphering the financial disclosure requirements for divorce in California is like peeling back the layers of an onion, revealing the intricate financial groundwork that underpins the end of a marriage. By detailing assets and debts, as well as outlining income and expenses, these requirements have a substantial impact on the eventual outcome of divorce agreements.

Understanding the nuances of these financial disclosures is key to ensuring a fair and equitable resolution. So, what exactly do these requirements entail, and how do they impact the divorce process?

Key Takeaways

• Timely preliminary financial disclosures within 60 days are crucial in California divorces .
• Mandatory forms like FL-140, FL-150, FL-142, and FL-141 ensure full financial transparency.
• Incomplete disclosures can lead to legal consequences and financial penalties.
• Transparent financial reporting is essential for fair settlements and court decisions.

Disclosure Deadline in California Divorce

When filing for divorce in California, meeting the 60-day deadline for submitting preliminary financial disclosures is a crucial step in the legal process. Both parties must share all relevant financial information by completing the required forms. Failure to disclose financial documents timely can result in delays and affect the fairness of settlements.

The Declaration of Disclosure form must be filed with the court and served on the other party within the specified timeframe. This document includes details of assets, debts, income, and expenses. Providing accurate and comprehensive financial disclosures is essential for transparency and ensuring that both parties have a clear understanding of the financial landscape in the divorce proceedings.

It's imperative to adhere to the disclosure deadline to facilitate a smoother divorce process and avoid potential complications down the line. By sharing the necessary financial information promptly, the divorce proceedings can progress efficiently and fairly.

Required Financial Documents in Divorce

In a California divorce, the required financial documents play a crucial role in ensuring full transparency and compliance with state laws. These documents, including the Declaration of Disclosure (form FL-140), Income and Expense Declaration (form FL-150), Schedule of Assets (form FL-142), and Proof of Service (form FL-141), are essential components of divorce financial disclosure. The Declaration of Disclosure mandates each party to provide comprehensive information about their financial status, assets, and debts. The Income and Expense Declaration requires a detailed breakdown of income sources, expenses, and financial obligations. The Schedule of Assets is crucial for listing all assets, their values, and any separate or community property distinctions. Proof of Service is necessary to confirm that the financial documents have been exchanged between the parties. By adhering to these requirements, individuals ensure compliance with California divorce laws and maintain the necessary level of financial transparency throughout the divorce process.

Completing Mandatory Disclosure Forms

To ensure compliance with California divorce laws and facilitate fair settlements, completing the mandatory disclosure forms is imperative for both parties involved in the divorce proceedings.

The Declaration of Disclosure, including forms such as the Income and Expense Declaration (FL-150) and the Asset Declaration (FL-142), is essential for achieving financial transparency. These forms require a comprehensive disclosure of each party's financial status, ensuring that all relevant information is provided for a fair division of assets and liabilities.

Additionally, completing the Proof of Service form (FL-141) is crucial to demonstrate that the necessary documents have been properly served to the other party. By adhering to these requirements and providing accurate and complete forms, both parties contribute to the integrity of the financial disclosure process, ultimately leading to more equitable divorce settlements.

It's essential to carefully complete these forms to avoid delays or complications in the divorce proceedings.

Consequences of Incomplete Disclosures

Inadequate financial disclosures during divorce proceedings can result in severe legal consequences, including contempt of court and monetary sanctions for non-disclosure or provision of false information.

In California divorce cases, failure to fully disclose financial information can lead to contempt of court charges if the non-disclosure is willful or intentional. Monetary sanctions may be imposed to cover the other party's attorney fees incurred in discovering the incomplete disclosures. Additionally, the court may award assets to the other spouse as a penalty for the incomplete disclosures.

If hidden assets or lies are uncovered post-divorce, agreements may be set aside, leading to further legal complications and financial repercussions. Moreover, the effects of delayed proceedings, loss of trust, and increased legal fees due to dishonesty can exacerbate the already stressful divorce process. Therefore, ensuring complete and transparent financial disclosures is crucial in California divorce proceedings to avoid these serious consequences.

Importance of Transparent Financial Reporting

Transparent financial reporting in California divorce cases is essential to uphold the integrity of the legal process and ensure equitable outcomes for all parties involved. Full disclosure of assets, debts, income, and expenses is mandated by California law to guarantee a fair resolution.

By providing accurate and transparent financial information, parties enable the court to make informed decisions based on all relevant factors. Failure to adhere to these reporting requirements can impede the court's ability to achieve equitable outcomes, potentially leading to unjust results.

Honesty and accuracy in financial disclosure not only promote fairness but also enhance transparency throughout the divorce process. Therefore, it's imperative for individuals involved in California divorce proceedings to prioritize complete and precise financial reporting to facilitate a just and equitable resolution of their marital affairs.

Compliance with these requirements is fundamental to maintaining the integrity of the legal system and fostering trust among all parties involved.

Frequently Asked Questions

Is financial disclosure required for divorce in california?.

Yes, financial disclosure is required for divorce in California. It ensures fair outcomes in matters like child support and property division. Full transparency is mandated by law for equitable decisions. Lack of disclosure impedes informed judgments.

What Are the Final Disclosures for Divorce in California?

We ensure final disclosures in California divorce by completing forms FL-140, FL-150, and FL-142. It's crucial to serve form FL-141 for proof. These disclosures guarantee full financial transparency, a vital step before finalizing divorce proceedings and ensuring equitable outcomes.

Is California a Mandatory Disclosure State?

Yes, California is a mandatory disclosure state, requiring parties in a divorce to provide detailed financial information. Failure to disclose can result in penalties. Full financial transparency is essential for fair divorce settlements .

What Assets Are Protected in Divorce in California?

In California, assets acquired before marriage, received as gifts or inheritances during marriage, or designated as separate property are safeguarded in divorce. Community property, usually earned during marriage, is subject to division.

In conclusion, adhering to California's divorce financial disclosure requirements is crucial for a fair and transparent legal process. Failing to disclose financial information can lead to penalties and complications in property division and support decisions. Just as each piece of a puzzle fits together to form a complete picture, accurate and timely financial disclosure forms the foundation for a smooth and equitable divorce settlement.

Transparency is key in navigating the complexities of divorce proceedings in California.

Understanding Financial Disclosure in Divorce Proceedings

Yearning for insights into the complexities of financial disclosure in divorce? Delve into this summary to unravel the crucial role it plays.

During divorce proceedings, disclosing one’s financial situation is akin to peeling back the layers of an onion; with each layer revealed, a new aspect of an individual’s financial truth is uncovered.

Imagine a divorcing couple where one party claims they have no assets, yet a mysterious bank deposit surfaces. The importance of financial transparency cannot be overstated in such scenarios.

Understanding the nuances of financial disclosure is not just a legal requirement but a pivotal step towards ensuring an equitable resolution for both parties involved.

• Complete financial disclosure ensures fairness and transparency in asset division.
• Knowing marital vs. separate property aids in equitable asset distribution.
• Concealing assets can lead to severe consequences and unfair settlements.
• Legal assistance enhances accuracy, compliance, and fairness in financial disclosures.

Importance of Financial Disclosure

Ensuring complete financial disclosure is paramount in divorce proceedings as it lays the foundation for transparency and fairness in the division of assets. In the intricate web of divorce, the importance of full financial disclosure can't be overstated. It's the bedrock upon which the equitable distribution of marital property, assessment of liabilities, and determination of spousal support rest.

Without transparent financial disclosures, the scales of justice tip precariously, potentially leaving one party at a significant disadvantage. Hidden assets or concealed income sources can skew negotiations, leading to unjust outcomes. By shining a light on all financial aspects, individuals empower themselves to navigate the divorce process with clarity and control.

Courts rely heavily on these disclosures to make informed decisions, ensuring that each party's financial standing is accurately represented. In divorce, where emotions run high and tensions can cloud judgment, a commitment to complete financial disclosure paves the way for a more equitable resolution.

Required Documents in Divorce

When navigating the complexities of divorce proceedings, gathering and exchanging required documents is a crucial step towards establishing transparency and fairness.

Financial disclosures are essential for a smooth divorce process, ensuring both parties have a clear understanding of the assets and liabilities at stake. Providing accurate financial information regarding bank accounts, division of marital property, and other crucial details is vital in a community property state.

Failure to provide these documents can impede the process, leading to delays and potential legal consequences. Required documents such as property deeds, retirement account statements, insurance policies, bank statements, and tax returns must be shared within specific timelines to maintain the integrity of the proceedings.

Waivers of initial financial disclosures must be documented in writing to be considered valid, emphasizing the importance of thorough disclosure in divorce cases, especially when considering spousal support.

Incomplete or misleading information can significantly impact the outcome of the divorce settlement, making it crucial to approach financial disclosures with diligence and honesty.

Differentiating Property Types

Understanding the distinction between marital property and separate property is fundamental for achieving a fair distribution of assets in divorce proceedings. Proper identification of property types is essential to ensure an equitable division of assets . Marital property typically includes assets acquired during the marriage, while separate property consists of assets owned before the marriage or received through gifts or inheritance. In states like Texas that follow community property laws, assets are generally split equally between spouses. By differentiating between these property types, couples can navigate the financial disclosure process more effectively and work towards a resolution that is fair and just.

Concealing Assets Risks

Experiencing the risks associated with concealing assets in divorce can have significant consequences on the fairness and integrity of the property division process. When individuals attempt to hide assets during divorce proceedings, they face severe repercussions that can alter the outcome of the settlement and lead to legal complications.

Here are five key points to consider regarding the risks of concealing assets:

• Financial Sanctions: Concealing assets violates Disclosure Law and can result in substantial financial penalties.
• Set Aside Agreements: Failure to disclose all financial information may lead to agreements being set aside, jeopardizing the validity of the settlement.
• Impact on Property Division: Hiding assets skews the property division process, affecting the equitable distribution of resources.
• Forensic Accountants: Utilizing forensic accountants can help uncover hidden assets, ensuring transparency in financial disclosures.
• Alimony and Support: Concealing assets not only influences property division but can also impact alimony rates and financial support arrangements, affecting post-divorce financial stability.

Legal Assistance Benefits

How can legal assistance enhance the transparency and accuracy of financial disclosures during divorce proceedings?

When navigating the complexities of family law, engaging the services of a reputable Law Firm specializing in Disclosure Law can be invaluable. These professionals possess the expertise to guide you through the intricate process of financial disclosure, ensuring that all relevant information, such as retirement accounts, pension plans, and investment accounts, is accurately documented.

By working with skilled attorneys, you can rest assured that your financial disclosures meet the legal requirements set forth by Texas law.

Legal representation not only facilitates compliance with disclosure regulations but also plays a crucial role in advocating for fair property division and child custody arrangements . With a knowledgeable attorney by your side, you can mitigate the risk of incomplete or dishonest financial disclosures, safeguarding your interests and ensuring a smoother divorce process .

Consulting with a Dallas attorney can provide you with the assurance that your financial disclosures are thorough, transparent, and in accordance with the law.

Why Is Financial Disclosure Important in Divorce?

We believe financial disclosure in divorce is vital as it promotes transparency, aiding in fair asset division and support determination. Incomplete or dishonest disclosures can lead to severe consequences and impact the final settlement.

What Is the Preliminary Financial Disclosure for Divorce?

We exchange crucial financial details like property deeds, bank statements, and more within 30 days of responding to a divorce petition. This information covers the last two years or since marriage. Waivers must be written.

How Do Financials Work in a Divorce?

Financials in divorce work by disclosing assets, debts, income, and expenses. It's crucial for fair settlements . Complete and honest financial disclosures are key. Failure to disclose can lead to legal issues. Transparency is vital.

How Do You Avoid Financial Disclosure?

We can't stress enough the importance of providing complete financial information in divorce. Avoiding disclosure can lead to legal trouble, financial penalties, and damage trust. It's crucial to be honest and transparent throughout the process.

In conclusion, financial disclosure in divorce proceedings is paramount for ensuring a fair division of assets and liabilities. Remember, honesty is the best policy when it comes to disclosing your financial information.

As the saying goes, 'honesty is the best policy.' By being transparent and thorough in your disclosure, you can help facilitate a smoother and more equitable divorce process for both parties involved.

Trust the process and trust in full disclosure for a better outcome.

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5 Tips for an Accurate Financial Statement in a Divorce

The decision to divorce is never an easy one, and perhaps one of the most painful life events there is. Separation of finances can be one of the more contentious aspects. AAFCPAs provides the following guidance regarding the development of your divorce financial statement, which is a crucial component of divorce processes where financial relief is requested. In Massachusetts divorce actions, Supplemental Probate and Family Court Rule 401 requires that each party complete a Financial Statement providing disclosure of current assets, debts, income and expenses. There are two options: the short form for income levels less than $75,000, and the long form for income levels more than $75,000 and for self-employed individuals. The importance of its accuracy cannot be overstated. It is the basis of the asset division and child/ alimony payments. AAFCPAs has outlined 5 tips to help ensure your Rule 401 Financial Statement is accurate and complete:

• Do not estimate your monthly expenses. Consider hiring a bookkeeper if appropriate to help summarize your expenses from bank statements for at least the past three years. Expenses may fluctuate from year to year so looking at a three-year average will give you a better indication of what your expenses will be going forward.
• Make sure you account for all income. This seems pretty simple, but in order to file an accurate financial statement make sure you account for the correct amount of gross payroll. This can be obtained from copies of your paystubs and may be different from what you report on your tax return. Make sure you include any other income such as a small side business, bonuses, rental income, and reimbursed business expenses as appropriate. Do not report expenses on both the business and personal side of the financial statement. Inaccurate income and expense reporting could be perceived in court as intentional. Take the time and use a reputable financial divorce analyst to help determine these amounts.
• Report assets at their proper fair market value. Do not estimate. Further, online websites do not necessarily capture the true fair market value of assets. A professional real estate or business asset appraisal will give you accurate fair market value and the comfort of knowing that money is not left on the table.
• Make sure all the assets and liabilities are accounted for. Ensure all income derived from investments reported on your tax return are reported on the financial statement. Note, there are certain tax-deferred or tax-free assets not reported on your tax return that should be listed on your financial statement. Make sure you account for all liabilities, including monies borrowed from friends and relatives. AAFCPAs advises clients to document these loans in a formal note agreement.
• Update your financial statement. Many divorces take time to finalize. Make sure as time passes and situations change, such as living arrangements, that the financial statement is updated. This will save time when agreements are drafted and finalized.

The 401 Financial Statement is cumbersome to complete. AAFCPAs’ divorce financial analyst is well suited to prepare this statement in a timely, efficient and accurate manner to ensure your financial success post-divorce.

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New bill introduced in Parliament to clarify crypto’s legal status

Tech-savvy owners of Bitcoin and other digital assets will benefit from greater legal protection thanks to an important clarification to the law.

• Bitcoin and other digital assets can be considered personal property under new draft law introduced in Parliament today (11 September 2024)
• Owners to benefit from increased legal protection
• Changes will keep English and Welsh law at the forefront of the global tech industry

The Property (Digital Assets etc) Bill, introduced in Parliament today, will mean that for the first time in British history, digital holdings including cryptocurrency, non-fungible tokens such as digital art, and carbon credits can be considered as personal property under the law.

The Bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law.

Previously, digital belongings were not definitively included in the scope of English and Welsh property law – leaving owners in a legal grey area if their assets were interfered with.

The new law will therefore also give legal protection to owners and companies against fraud and scams, while helping judges deal with complex cases where digital holdings are disputed or form part of settlements, for example in divorce cases.

Justice Minister Heidi Alexander said:

Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry. It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in cryptoassets and bring clarity to complex property cases.

Today’s news also means the UK legal sector will be better equipped to respond to new technologies, attracting more business and investment to the legal services industry which is already worth £34 billion a year to the economy.

It is estimated that English law governs £250 billion of global mergers and acquisitions, and 40 per cent of global corporate arbitrations, so keeping the law up to date is vital to ensuring that the UK remains the law of choice internationally. 

Notes to editors

• Digital asset is an extremely broad term, encompassing a variety of things such as digital files, digital records, email accounts, digital carbon credits, cryptoassets and non-fungible tokens (NFTs). The Law Commission’s recommendations only apply to a subset of digital assets, of which the main one is cryptotokens.   
• Currently there are two categories of property, “things in possession” (e.g. gold, money, cars) and “things in action” (e.g. debts, shares). This Bill introduces a third category of “thing” to allow for certain digital assets to attract personal property rights. 
• The action being taken on digital assets is in response to the Law Commission’s report in 2023. The MOJ commissioned the report to identify any barriers to the recognition of digital assets as property under English and Welsh private law and to recommend solutions. 
• The Law Commission’s report summary can be found here .

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