As financials are an often cited cause for divorce, it’s no surprise that many couples find navigating finances during a divorce one of the most contentious aspects of this process. In order to ensure that matters are handled fairly, the courts require full financial disclosure from divorcing couples. If you’re unsure what this entails or the impact it can have on your divorce, you’ll want to keep reading. You’ll also discover why working with a Long Island property distribution lawyer is in your best interest during these complex legal matters.
What Is Financial Disclosure During a Divorce?
During a divorce in New York, the courts will require each party to submit a comprehensive overview of their finances. This includes all assets, liabilities, income, and expenses in their name.
In New York, you’ll need to submit a Statement of Net Worth. This is a detailed document that requires full transparency and accuracy when completing. In addition to this document, you are required to submit supplemental information, like W-2s, 1099s, and Income Tax Returns.
How Does This Impact My Divorce?
Financial disclosure has a significant impact on the outcome of a divorce in New York. The information in this document will primarily be used to determine matters like child support, alimony, and property division.
Ensuring the accuracy of these documents is critical to ensure that the spouse who receives primary custody is able to get the child support needed for the child to thrive. Additionally, the court will examine the financial circumstances of both parties to determine not only if a spouse should be granted alimony, but also whether or not the other party can afford it.
However, one of the most significant roles that financial disclosure plays is determining how a couple’s marital assets will be distributed. New York adheres to the equitable distribution of assets, meaning property will be divided based on each couple’s contributions to the marriage as opposed to an automatic even split. As such, it’s imperative to ensure that these documents are filled out accurately and completely to ensure the courts have the information they need to make fair and equitable decisions.
What Happens if a Spouse Conceals Assets During this Process?
Unfortunately, some spouses feel as though they are entitled to certain assets or a more favorable outcome of the distribution of assets, so they make the decision to hide assets from their spouse and the court. This is often done through underreporting income, creating secret bank accounts, and transferring assets to friends and family.
In the event a spouse is found attempting to hide assets, the court will not look favorably upon them. Generally, you’ll find that the court may award the other spouse the assets their partner was attempting to hide or grant a larger share of the assets. Similarly, any spouse attempting to commit fraud may be held in contempt of court or face perjury charges for lying to the court.
Financial disclosure plays a significant role in your divorce, and as a result, it’s paramount to ensure this information is completed properly. As such, it’s in your best interest to work with an experienced divorce attorney with Barrows Levy PLLC. Our team understands how difficult these matters can be to navigate, which is why we will do everything in our power to help you fight for the best possible outcome for your circumstances. Contact us today to learn more.
