Financial Disclosures in New York: What You Need to Know
Financial disclosures are one of the most important aspects of divorce you will have to consider. Whether you have been married for a few years or a few decades, all couples must go through this process in order to get divorced in New York.
What are financial disclosures, and why are so vital to the divorce process? Read on to learn more about financial disclosures in New York, including the Rule 11 Agreement exception.
Financial disclosures are usually required in New York
When we talk about financial disclosures in divorce terms, we’re talking about financial documents that detail each spouse’s assets and debt. These documents may include income tax returns, bank account statements, credit card statements, retirement account information, and more.
When preparing for divorce, it’s important to provide your spouse with accurate information about your financial situation. This information will be used during the divorce proceedings to determine each spouse’s share of assets and liabilities. The information you provide is guaranteed by your signature under the penalty of perjury.
Financial disclosures can illuminate hidden assets, such as offshore accounts or businesses that were not previously disclosed. This helps promote a fair and equitable distribution of marital assets and debts.
In order to complete a financial disclosure, you will need:
- Copies of your income tax returns
- Records of real estate owned by either party (including title deeds or mortgages)
- Records of investments owned by either party (such as stocks and retirement accounts)
- Records of business interests owned by either party (such as partnership agreements)
- Records of any other debts or assets owned by either party (such as credit card bills, mortgages, or liens)
You may also need copies of your pay stubs from the last six months or other proof of income, depending on how you get paid.
The information you provide in financial disclosures may impact whether and how much spousal support or child support is awarded in your divorce settlement agreement.
Rule 11 Agreement exception
It is almost always required that both parties submit financial disclosures during a divorce proceeding in New York. However, there is something known as the Rule 11 Agreement exception, which states that spouses do not need to file financial disclosures if both agree in writing not to do so.
Without this agreement, a court may not sign off on your divorce until they've reviewed the financial disclosures. The goal is to ensure an equitable distribution of your marital assets and debts.
FAQ about financial disclosures in New York divorce
How can I make sure my financial disclosure statement is accurate?
Accuracy is important. Include all financial details: assets, debts, income sources, expenses, tax returns, and anything else that might be relevant. Make sure to provide the most up-to-date information you can.
If you need assistance in gathering information or evaluating its accuracy, you might decide to hire a financial professional or attorney to help you evaluate its accuracy.
What happens if I fail to provide the required financial disclosures during my divorce case?
Some people are reluctant to share sensitive information about their finances with others in the divorce process. But if you fail to provide the necessary financial information during a divorce in New York, the court may impose sanctions on you, such as ordering payment of attorneys’ fees.
Failing to disclose all of your assets could result in unequal marital property division or undeserved spousal support payments being awarded.
Is it possible to challenge the other party’s financial disclosure during a New York divorce?
Yes, it is possible for one party to challenge another’s financial disclosure by filing special requests for additional information and documents concerning their finances. The other party may object to this. If so, you’d need to present evidence to a judge to explain why you're challenging your spouse's financial disclosure.
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