When you file for divorce you will find yourself knee-deep in all kinds of paperwork, but a financial affidavit is one of the most important documents that will be required of you. The way you fill out this statement will impact the outcome of all financial issues related to your divorce. To learn more about financial affidavits and their relevance in your divorce, work with an experienced Mountainside property distribution attorney during your case.
What is a Financial Affidavit?
A financial affidavit is a legal document that may be required to be submitted when dealing with financial matters. It is essentially a statement outlining all of the specific details regarding an individual’s financial situation from the sources of their income to the various debts and obligations they have incurred.
You must provide accurate descriptions of the following to ensure you are abiding by the law.
- Income: All monetary resources including salaries, bonuses, commissions, child support payments, and investments
- Expenses: Everything you pay for each month from rent to car payments, utilities, groceries, childcare, education costs, insurance, and more
- Assets: All of the properties and assets you possess including real estate, vehicles, bank accounts, retirement accounts, stocks, etc.
- Debts: All financial obligations you have like mortgages, student loans, auto loans, credit cards, and more
The statement is legally binding so by completing and signing the document you are swearing that the information you have provided is complete and accurate.
Why Are Financial Affidavits Relevant During Divorce?
When you and your spouse decide to get a divorce, you will both be required to submit a financial affidavit. These documents set the tone for the outcome of all financial matters related to the divorce including how assets and debts are divided between the two of you as well as how much child or spousal support will be required.
Unless you and your spouse have come to an agreement on these topics and have had the decision approved by the court, the judge will make the final decision for all relevant issues. It is important, however, that these decisions be made based on all relevant facts and information to ensure fairness and equitability.
New Jersey is an equitable distribution state when it comes to divorce, which means that all marital assets and debts must be divvied up between spouses based on what is fair, not necessarily an equal split. In addition, it is imperative that the lower-earning spouse is given the opportunity to receive alimony based on the circumstances of the relationship. Child support is also crucial to ensure that both parents continue contributing financially to the upbringing of their child.
In order for a judge to determine what support and asset split is fair, they must first obtain all relevant information about each spouse’s financial situation. Only after evaluating all relevant information about each individual’s income, earning capacity, debts, and expenses can the judge make a fair decision.
