For many couples filing for divorce, financial issues play a significant role in the decision. As such, you can expect that finances have a considerable impact on the outcome of your divorce. Because finances are one of the most contested matters for a divorcing couple, you’ll find that the courts take this matter very seriously. If you are going through a divorce, you should understand the importance of financial disclosure and why working with Long Island property division lawyers is in your best interest.
What Is Financial Disclosure, and How Does It Affect a Divorce?
When you are going through a divorce, one of the most important matters that must be decided is how to divide assets. Because finances are often one of the most hotly contested matters during a divorce, it’s not uncommon for the court to step in and determine how to divide assets.
In order to ensure the division of assets aligns with New York’s equitable distribution statute, the courts require each party to fully disclose all finances. This includes their income, assets, expenses, and liabilities. In New York, you must complete a Net Worth Statement that will contain this information, as it will be the basis of what the court uses to divide marital assets.
As mentioned, New York courts use the equitable distribution method, which means the division of assets will be fair, not necessarily equal. This is where financial disclosure plays a significant role, as it helps ensure that the division of assets and debts is fair.
In addition, this information will play a significant role in determining matters like alimony and child support, so the accuracy of financial information is critical.
What Happens if a Spouse Tries to Hide Assets During This Process?
Unfortunately, some spouses may feel as though they are more entitled to certain assets or outcomes than their partner. As such, they may attempt to hide and conceal property during the divorce to receive a more favorable outcome.
This is often done through transferring property to friends and family, opening secret bank accounts, or even manipulating documents to make it appear as though they earn less than they actually do.
If a spouse is found hiding assets during the divorce, the court will penalize them. Often, this includes granting the other spouse a larger share of assets, granting the other spouse the asset their partner was attempting to conceal, and even charges of perjury for lying to the court.
Filing for divorce is an incredibly complicated matter, and making errors during this process can impact your finances for years following your divorce. If you need assistance completing the Net Worth Statement or you have reason to believe that your spouse is concealing assets, it’s imperative to connect with an experienced attorney with the Sklavos Law Firm. Our team understands how complicated these matters can be, which is why we will do everything possible to help you fight for the best possible outcome. Contact us today to learn how we can assist you.