Dividing assets or assigning financial obligations during a divorce can be extremely contentious. Financial affidavits help the court make a fair determination regarding all financial issues relevant to the case including property division, child support, alimony, and more. To learn more about the role that a financial affidavit will play in your divorce, enlist the help and counsel of a skillful Sparta property distribution attorney.
What is a Financial Affidavit?
Financial affidavits are important documents in many legal and financial matters. Their use may be required when taking out a loan, filing for bankruptcy, filing for divorce, or in many other situations.
These documents are sworn statements that display a clear and complete picture of an individual’s financial situation from how they make money to how much they pay for various expenses. It requires full disclosure of a person’s income, expenses, assets, debts, and all other relevant financial information.
Because these are sworn legal documents, they require full disclosure and by signing you are stating that you swear that the information provided is true and complete. You cannot legally leave out any financial information.
What Information is Required in an Affidavit?
In terms of income that includes all financial resources including salaries from jobs, money from self-employment, bonuses, commissions, rental income, and more. The document also calls for a total breakdown of an individual’s regular expenses such as rent or mortgage payments, utilities, grocery costs, transportation, child care, and other monthly payments.
The document also requires a list of assets and debts. Assets includes all property and financial resources like homes, cars, retirement accounts, bank accounts, and investments whereas debts includes all outstanding financial obligations including mortgages, student loans, credit card balances, and other liabilities.
Why Are Financial Affidavits Needed During Divorce Cases?
In most jurisdictions, both spouses are required to submit a financial affidavit as part of the divorce process. This type of full disclosure is crucial for many reasons. First, it ensures a fair division of assets and debts. Financial affidavits provide an overall view of the marital assets and debts so the court can equitably distribute each amongst the parties. Without this document, one spouse could hide assets or provide a misrepresentation of their financial situation which could lead to an unfair division of property and debt.
Some divorce cases will also require support obligations like child or spousal support. Financial affidavits can be used to assess the financial needs and abilities of each party. This will provide the court with information necessary to calculate fair child support or alimony amounts and ensure that neither spouse is suffering an undue burden as a result of the divorce.
Financial affidavits promote transparency during the divorce by requiring both parties to disclose all financial infromation under sworn oath. If you have additional questions or concerns related to the required documents in your divorce, reach out to an experienced attorney today.
