Divorce may seem to be about a relationship ending. However, divorce is primarily a financial parting of ways. Child and spousal support, debts, and marital property are all financial issues that must be resolved. Parties that neglect to protect their financial interests could be negatively affected for a very long time. Divorce and the financial decisions that occur alongside it influence both parties and their children.
What is Full Financial Disclosure?
Making a full financial disclosure is a crucial aspect of divorce proceedings, as it allows both parties to fully understand each other's financial situation and make informed decisions about property division, spousal support, and child support. Here are some key things to know about making a full financial disclosure during a divorce.
What is included?
A full financial disclosure typically includes information about all assets and liabilities, including bank accounts, investments, real estate, debts, and income. If either of the parties owns a business, information about the business should also be included. This information must be accurate, complete, and up to date.
Why it is important?
Making a full financial disclosure is required by law in most jurisdictions, and failure to do so can result in legal consequences. It is also important for both parties to have a clear understanding of each other's financial situation to ensure a fair and equitable division of property and debts.
How to make a disclosure
Full financial disclosure can be made through a variety of methods, such as completing a financial affidavit, providing bank statements and tax returns, and answering written questions. The specific requirements for disclosure may vary depending on the jurisdiction.
Consequences of non-disclosure
Failing to make a full financial disclosure can have serious consequences, such as being held in contempt of court, being ordered to pay fines, or having the divorce settlement overturned.
Working with a professional
It may be helpful to work with a financial professional, such as an accountant or financial planner, to ensure that all financial information is properly disclosed and understood. A family law attorney can also provide guidance on the specific requirements for financial disclosure in your jurisdiction.
Making a full financial disclosure is an important part of the divorce process, and failure to do so can have serious consequences. It is important to work with professionals and follow legal requirements to ensure that all financial information is accurately and completely disclosed. Speak to your divorce attorney for more guidance.