For many, going through a divorce poses a number of important financial considerations, like how you will divide assets or who is responsible for paying child support. However, in order to determine these matters, each party must complete a financial affidavit. Also called a Net Worth Statement, it is a required legal document that details each spouse’s income, debts, assets, and expenses. The court will utilise this information to determine important matters like alimony, child support, and property division. If you are unsure what this document is or what to include, you’ll want to keep reading, as the following blog explores these matters in further detail. Additionally, you’ll discover the importance of working with Long Island family lawyers during this process to help you during these difficult times.
What Is a Financial Affidavit, and What Information Must Be Covered?
When you and your spouse decide to file for divorce, one of the most important documents you must submit to the court is a financial affidavit, also commonly referred to as a Net Worth Statement. This essentially details all your financial information, including your income and expenses, as well as assets and debts. This document is critical to the outcome of your divorce, as it can be used to determine matters like property division, alimony, and child support.
What Information Must Be Included in a Financial Affidavit?
A financial affidavit in New York must include a considerable amount of information, like your income, assets, debts, and monthly expenses.
- Case information, like the docket number, both parties, and their representation
- All income, including bonuses, tips, social security, and secondary sources of income
- Inheritances, insurance payouts, gifts, or personal injury case awards
- Eligible tax deductions
- Your children, their ages, and related expenses
- Household expenses
- Your current expenses
- Debts paid
In addition, you’ll need to include supplemental documentation, including:
- Previous tax returns
- Proof of income
- W-2 forms
- Bank and investment account statements
Why Financial Disclosure Is Critical in a New York Divorce
Financial disclosure is the foundation of any divorce proceeding in New York. Courts rely on complete transparency from both spouses in order to ensure that matters like alimony, child support, and property division are fair.
Divorces on Long Island and across New York are subject to the state’s equitable distribution statute, which means that assets are divided fairly, but not automatically equally. This makes full and accurate disclosure critical to ensure a fair outcome.
How Financial Disclosure Impacts Divorce Outcomes
- Determines how marital assets and debts are divided
- Impacts support determinations, including alimony and child support
- Helps the court uncover hidden or undisclosed assets
- Ensures compliance with New York divorce law
Because courts rely almost entirely on this information, even small errors or omissions can significantly affect how assets and financial responsibility are assigned.
What Happens if Information Is Incorrect?
Because both spouses are required to provide comprehensive financial affidavits on Long Island, ensuring the information included in your document is correct is critical. Miscalculations or concealing assets and debts can impact the outcome of your divorce, meaning you may not get the financial support necessary.
However, if you intentionally include incorrect information as a means of obtaining a more favorable outcome, the court will likely uncover this information. You can be penalized as a result, facing penalties like fines, forfeiture of assets, and even potential jail time.
Common Financial Disclosure Mistakes to Avoid
- Failing to disclose all sources of income
- Undervaluing or intentionally omitting assets
- Providing outdated or incomplete information
- Intentionally hiding assets or transferring property to friends or family for the duration of the divorce
What Happens if a Spouse Hides Assets During the Divorce?
Unfortunately, some spouses may feel like they are entitled to certain assets or outcomes as opposed to their partner. As such, they may try to hide or conceal assets to receive what they believe is a fairer outcome. This is often done through property transfers to friends and family, intentionally manipulating financial records, or even opening undisclosed or offshore bank accounts.
Legal Consequences of Hiding Assets
- Courts may award a larger share of assets to the other person
- Concealed assets may be entirely forfeited
- The spouse who has hidden assets may be financially penalized
- Perjury charges may apply for knowingly providing false information
- The court may reopen previous settlements if fraud is discovered
New York Courts take financial dishonesty seriously, and attempting to conceal or omit assets can result in long-term financial and legal consequences.
Why You Should Work With a Long Island Divorce Attorney
That is why it is critical to connect with an experienced attorney who can guide you through the process of completing a financial affidavit to ensure the information included is accurate. Not only can this help ensure you receive the best possible outcome for your case, but it can also help you avoid legal issues. Similarly, your attorney can examine the financial affidavit your spouse provides to ensure their information is accurate and they are not inflating numbers or concealing assets.
Contact a Nassau County Divorce Attorney Today
At the Sklavos Law Firm, our team understands how overwhelming a divorce can be. Not only must you navigate the emotional complexities of this process, but you may also struggle to navigate the financial issues that can plague this process. That is why it is strongly recommended to connect with an experienced attorney from our firm. Our team will examine your circumstances to determine the best possible outcome. When you need assistance, contact our team today to learn more.