Some of the most relevant topics that must be covered in a divorce involve finances, like property and debt division, spousal support, and child support. One of the most important factors in ensuring a fair divorce is total and complete financial disclosure. Work with a skilled Bergen County divorce lawyer to learn about your legal rights and obligations during your New Jersey divorce.
What is Financial Disclosure?
Financial disclosure refers to the process of two or more parties providing each other with information on their financial situation. In terms of a divorce, each spouse is required by law to provide the other with documentation outlining their entire economic standing, including their assets, income, debts, expenses, and any relevant information regarding their finances. Important information includes the following.
- Salary
- Bonuses
- Commissions
- Employment benefits
- Investments
- Business interests
- Bank accounts
- Retirement accounts
- Real estate
- Vehicles
- Life insurance policies
- Other personal property, like furniture, artwork, and jewelry
- Mortgages
- Credit card balances
- Student loans
- Personal loans
- Monthly expenses
In order to ensure full financial disclosure, the court will require each spouse to provide documentation and evidence such as financial affidavits, pay stubs, tax returns, bills and receipts, property and vehicle deeds, bank statements, and more.
Why is Financial Disclosure Important in an NJ Divorce?
Financial disclosure is important for a variety of reasons, with one of the most important being the court’s ability to make fair decisions. During a divorce, several issues must be addressed, including the division of property and debts, alimony, and child support. These topics are settled based on financial information from each party.
New Jersey is an equitable distribution state, which means that each spouse will be awarded assets and assigned debts based on what is fair and equitable, depending on their income, earning potential, health, contributions and sacrifices they made for the relationship, etc. Without full financial transparency, a court would be unable to make educated and fair decisions regarding who is entitled to and responsible for what.
Financial support obligations like alimony and child support also rely on accurate financial information. It must be determined which spouse owes the other spousal or child support, how much the receiving spouse needs, and whether the paying spouse can afford to meet the obligation. Financial disclosure ensures that the court sets up an arrangement that works for each party involved.
As established, financial disclosure is required by law. Adhering to this rule ensures that the spouses are in compliance with state law. If one or both spouses are caught hiding assets or underreporting income, they could face serious legal consequences. A court’s decisions regarding these issues are legally enforceable, but if it is found that they were made based on fraudulent information, the divorce order can be overturned.
Full financial disclosure plays an important role in New Jersey divorces. To learn more and secure skilled legal counsel, reach out to an attorney at Feitlin, Youngman, Karas & Gerson, LLC today.
