Complete Guide To Your Divorce Financial Affidavit

One of the most important documents that you will complete as a part of your divorce is your Financial Summary. It is a comprehensive layout of both everything you and your spouse own, as well as what you owe. Usually each spouse is required to complete one of these separately, in the unlikely event that the two of you are separating in perfect agreement with one another you may only have to fill out one version of this.

The Financial Summary may be referred to as many things, usually it is known as a Financial Affidavit, it is sometimes called a Financial Declaration or a Statement of Net Worth in the United States. In the United Kingdom it is the Form E, and in Canada it is Form 13 and 13.1. Regardless of what it is called in your particular location, the principles of this summary remain the same.

Your attorney will provide you with the correct documents to fill out, and once you have filled it out they will check it over for large errors but unfortunately they cannot be counted on to analyze it even a quarter as thoroughly as the opposition will. If you are having significant trouble filling out this information you may want to consider getting in contact with a professional accountant as well as informing your attorney of the difficulty you are having putting together your financial documents in order for them to assist you.

This document covers explicit details regarding your income, expenses, assets, and liabilities. It is imperative that the information listed within is both accurate and as comprehensive as possible. This document will be used by the courts to decide how both property and debt will be divided and it is this document that will be the foundation for all future decisions regarding things such as alimony and child support.

Attempting to do a “best guess” for the numbers you put in this document is a bad idea. If you list numbers that are too high you may find yourself being held to that standard of income despite not having it. Then you’ll be stuck in the difficult situation of trying to appeal the initial outcome of your divorce, which can take months, all the while being responsible for the high payments (which you can’t actually afford.) Listing numbers that are too low could be worse.

Your financial summary will be thoroughly reviewed by the opposition. They will look to find any mistake and if they find even one they will use it to make the entire thing appear to be a sham. It’s unlikely that you will be given the benefit of the doubt that you simply “didn’t know.” Instead, it will appear as if you lied on the document on purpose and intentionally submitting false information on this document is considered perjury and may result in further legal action being taken against you.

It is in your best interest to ensure the information provided within this document is as accurate as possible. The summary should be typed up and presented in a professional manner, having the aesthetics and appearance of professionalism can go a long way to legitimizing you and your case in the divorce.

Ideally your financial summary would list more expenses than income so be sure to consider every possible monthly expense. Consider things such as credit card debt and how the monthly fee may change or grow depending on the average balance on the card and the interest rate. Many people have more debt than they realize and this is one situation where than can in some ways be helpful to you. If you are able to provide proof that your current income just barely (or doesn’t at all) match your current expenses it is unlikely you will be ordered to pay high rates of alimony.

The basic financial information you will need to complete your financial summary:

Current Income Information

• Payroll Receipts (as well as Bonuses, Commissions, or any fringe benefits such as travel expenses being covered by your company)
• If You Became Unemployed Within The Last Three Years: A Record of Employment or other evidence of job loss must be provided.
• Any Property Income (Such as Investment Properties or Rental Properties that you own)
• Dividends
• Royalties
• Winnings

Income Tax Returns from previous years (at least the most recent year and up to five years)

• Personal and/or Joint Returns

Banking Information (Personal, Joint, and Business Accounts)

• Bank Statements and Balances
• Bank Charge Notices (Cost of Account)
• Savings Account Balances and regular contributions
• Loan Information – including any loan application made in the last five years

Investments

• Stocks / Stock Options
• Bonds
• Mutual Funds
• Additional Corporate Interests (both Foreign and Domestic)

Additional Work Financial Information

• Pension Information
• Company/Employee Stock Options or Profit Sharing Information

Retirement Plan Information

• (401K, 403B, 412(e)(3), 457, military, IRA, Roth IRA, SEP-IRA, Keogh)

Inheritance Information

• If you are a beneficiary, trustee, executor, or guardian and have been receiving or did receive any benefits in the last five years.

Insurance Policies

• Life Insurance
• Other (General) Insurance Policies in effect – on business, home, vehicle, self or spouse.

Debt Information

• All debt owed by you, to you, or if you are a cosigner. Basically any debt that is in any way attached to your name. Things like:
• Student Debt
• Mortgages
• Personal Loans
• Credit Cards and Lines of Credit
• Business or Personal Lawsuit related debt.

Property

• All property currently owned by you (whether acquired prior to or during marriage, be sure to specify)
• Real Estate (This includes properties you rent or lease, along with sale or option agreements you have on property)
• Personal Property (including but not limited to: Antiques, Artwork, Automobiles, Boats, Furniture, Gold, Jewelry, and your Stamp Collection)
• Appraisals should be done on assets of large or difficult-to-determine value
• Include items you received as a gift or through inheritance

Other Various Assets, Income Sources, or Expenses

• Safety Deposits Box Contents
• Membership Fees (Health Clubs, Country Clubs, any form of membership you pay for on a monthly or yearly basis)
• Anything else you can think of.

The important thing is to be as thorough and accurate as possible. With that said I do understand the difficulty in laying yourself bare here. I have been asked many times if there is a safe way to either hide finances or temporarily lower your income as a means of lowering the amount of damage that can be done to you and your financial security in a divorce. For entertainment purposes only black-hat information of that nature is available here.