One of the most important components of finalizing a divorce is the division of assets and debts along with other financial responsibilities. During this process, financial affidavits are often used to ensure a fair outcome for all parties involved. If you are getting a divorce and are wondering whether or not financial affidavits will be required of you and your spouse, keep reading for more information and contact a Bergen County property division attorney for skilled representation.
What is a Financial Affidavit?
Financial affidavits are sworn statements that detail the entire financial situation of an individual or entity. They outline an individual’s income, regular expenses, assets, and debts to depict a clear picture of their financial standing.
Every detail of a person’s financial situation must be included in this document including various forms of income, interest earned on investments, support from previous relationships, bonuses, commissions, monthly living expenses, real estate, bank accounts, loans, credit card balances, and more.
Because the statement is sworn, by filling it out and signing your name you are swearing under oath that the information provided is true and you did not leave anything out. Every detail matters when it comes to a financial affidavit.
Are Financial Affidavits Required During Divorce?
Generally, yes, financial affidavits are required during divorce proceedings. These documents are crucial in helping the court and both parties involved understand the scope of their financial situations. They ensure full transparency and that all financial assets and obligations are disclosed accurately.
In a divorce, financial affidavits are used as part of the discovery process to help determine how much each spouse earns, spends, owns, and owes. This is crucial when deciding on topics like property division, alimony, child support, and other financial matters. In a divorce, these sworn statements ensure full transparency between parties to reduce the chance of one spouse hiding assets or attempting to cheat the other out of property.
New Jersey is an equitable distribution state which means courts require a fair division of assets and debts rather than an equal one. The court relies on accurate financial information to make informed decisions about how to divide property and allocate debts between individuals. Using financial affidavits helps ensure that neither party is unfairly burdened by the outcome of the divorce.
Financial affidavits can also play a role in determining the amount of spousal or child support that may be awarded. Having a clear picture of both parties’ incomes and expenses is necessary to calculate a fair amount of support. Without this information, it can be difficult for a court to determine a reasonable amount that is fair to both spouses.
Consult with a skilled family law attorney for more information on your legal obligations and rights during your divorce.
