When going through a divorce, one of the stages you and your soon-to-be ex-spouse will observe is financial disclosure. This is a mandatory rule that requires spouses to exchange comprehensive financial documents.
Financial disclosure provides transparency of the marital estate. Crucial divorce-related decisions will be made based on the information provided.
Here is what to know about it:
What information should you provide?
Examples of the required documentation for financial disclosure include:
- Bank statements
- Pay stubs and income details
- Documentation related to employee benefits
- Financial records for business owners and self-employed parties
- Personal and business tax returns
- Retirement account statements
- Brokerage/investment account statements
- Loan applications, such as mortgages, credit card debts, car loans, student loans, personal loans etc.
- Life insurance policy
- A list of assets, including digital assets
You should confirm that the information and documents you have provided are accurate before filing.
Pay close attention to your spouse’s documents
When you receive your spouse’s financial disclosure, pay close attention to every detail. Check the list of assets and debts and confirm the included values of each.
Moreover, carefully compare tax returns, W-2s, and pay stubs against the reported income, look out for large, unexplained cash withdrawals, verify the reported loans and examine business records for unusual expenses/transfer of funds, among other things.
If you need further information about a certain matter, politely reach out to your spouse or their team. For instance, if you notice an asset has not been listed or an asset has been undervalued. Consider using written communication, as it’s easier to document. You should also expect your spouse to contact you. If they do, respectfully answer their questions and document your interactions.
Financial disclosure is integral to the fair division of property. Get more information about how to do it accurately and what to do when you notice discrepancies on your spouse’s documents.