What Is Financial Disclosure?
In every divorce, both spouses must disclose their finances fully to each other and to the court. Full financial disclosure is crucial in order to appropriately calculate child support, equitably divide the marital property and debts, and make a determination on alimony. It is difficult to ensure the terms of the divorce are fair to both spouses without everyone being aware of all the facts.
If you plan on having a divorce mediator help you and your spouse with your respective financial disclosures, make sure you come to your mediation sessions with the proper documentation. If you are working with a mediator on drafting a separation agreement, you and your spouse will have to submit a financial statement for the judge to review. If your combined income is less than $75,000, you will submit the short form financial statement, and if your combined income is equal to or greater than $75,000, you must submit the long form. Both forms are more or less exhaustive and will require that you do some homework. To complete your financial statement, you should gather your last year’s tax return, 3-4 months of pay stubs or proof of income, three months of utility and telephone bills, documentation of any insurance premiums, your most recent mortgage statement, and your most recent statements for any bank accounts, investment accounts, and liability accounts. You may want to review your credit report to ensure all your debts are accounted for. You will also need to submit an itemization of all your assets and appraisals of their fair market value. This is the minimum amount of information you will need; you may need to submit more, depending on the specifics of your case.
If you are going through a divorce and have questions about disclosing your finances, consult with an experienced Massachusetts divorce mediator.
Fully disclosing your finances is very important. Even unintentionally failing to disclose all accounts can have negative repercussions. The courts take non-disclosure seriously, and in signing a financial statement, you are swearing that the information you provide is truthful. Speak with a divorce mediator if you have any questions about what information you and your spouse will need to provide in order to complete your financial statement.
If you have questions about financial disclosure in divorce, contact Mediation Advantage Services for expert help. Experienced in divorce mediation, Polly A. Tatum can help you efficiently mediate your divorce and submit a thorough financial statement with your separation agreement.
Based in historic Worcester, our firm serves all cities and towns throughout Massachusetts and Worcester County including, Auburn, Paxton, Leicester, Sutton, Grafton, Shrewsbury, Westboro, Northboro, Southboro, Holden, Sterling, Princeton, Worcester, Charlton, Millbury, Dudley, Spencer, Brookfield, Sudbury, Natick, Framingham, Hopkinton, Milford, Blackstone, Leominster, Fitchburg, Acton, Jefferson, Barre, Oakham, Cambridge, Newton, Marlboro, Lancaster, Bolton, and Hudson. Call our office a (508) 795-1557, fill out our online form, or email us at [email protected] today to schedule your Complimentary Mediation Success Planning Session. You can also sign up for our eNewsletter or download our free guide for more information regarding divorce in Massachusetts.