What is a Divorce Financial Statement?
The divorce financial statement is a form that lists all assets and liabilities of each person involved in the divorce. Each person must fill one out their portion and submit it to the court in order to explain their financial situation to the court.
Divorce financial statements are used to handle splitting assets, as well as issues involving debt, property division, as well as both child and spousal support. That's why you need a family law attorney during this process.
Types of Divorce Financial Statements
There are two different options when generating your financial statement documents - short form and long form.
The short form divorce financial statements are for those who make less than $75,000. The long form financial statements are for those who make more than $75,000 annually, or are self-employed. It is essential to fill out the correct form because this is what determines how your assets are divided, as well as child support and alimony payments.
Tips to Help Ensure your Financial Statement is Accurate & Complete
Here are a few tips to make sure your divorce financial statements are filled out properly, accurately claiming assets and finances during the divorce.
Do not estimate your monthly expenses
When it comes to divorce everything needs to be exactly accurate. You may even consider hiring someone to help summarize your expenses from bank statements. Do this for the past three years at least, because it will give you an accurate idea of your true monthly expenses.
Make sure you account for all income
Filing an accurate divorce financial statement means you need to file the amount of gross payroll. This can be found from your pay stubs, because it is your before tax gross income. If you have a day job but also a side business, bonuses, rental income, or reimbursed business expenses, you will need to include these.
Be sure to report both business and personal expenses on different sides of the statement. If you make mistakes it may be seen as intentional which would make you look very bad in the eyes of the judge.
Report assets at their proper fair market value
Make sure that you never estimated when it comes to your assets. Online websites may not be able to give you the real value of your home or car, therefore you need to have a professional appraise them. Additionally, this will give you confidence in knowing the value of your property.
Make sure all the assets and liabilities are accounted for
If you have reported your income and investments on your tax returns, then you need to make sure that these are also reported on the divorce financial statement. Some tax-deferred or tax-free assets should not be reported on your tax return, but they do need to be listed on your divorce financial statement. Any liabilities and debts including money borrowed from friends and relatives also needs to be included.
Update your financial statement
Divorce is not an easy or quick process. This means that as time goes on you may need to make changes and updates to your financial statement .Whether this includes your address, sale of a home, or any other changes in your life. Continue to update your financial statement regularly.
Get Help from a Family Law Attorney
Going through a divorce can be difficult to handle on your own. A family law attorney has experience and will be able to file paperwork for you. If you are going through a divorce the Joshua Wilson Law Firm can help.
We specialize in divorces and can document your divorce financial statements for you. Speak with a divorce attorney today to schedule a free consultation.