The Ins and Outs of a Financial Affidavit

What is a financial affidavit?

A financial affidavit is a statement of a party’s income, expenses, assets, and liabilities.

When is a financial affidavit required?

Your lawyer will inform you when a financial affidavit is required. However, one is required in the following circumstances:

• On the date of divorce. You cannot get divorced unless you and the other party have filed current sworn financial affidavits.
• On the Case Management Date. The Case Management Date is an assigned court date approximately 90 days after a divorce action commences. A current sworn financial affidavit must be filed with court on or before this date. Extensions are sometimes permitted, depending on the circumstances.
• In connection with any pendente lite or post judgment financial hearing (i.e. alimony, child support, or counsel fees).
• Depending on the judge and the circumstances, a financial affidavit may be required in connection with a contempt hearing.

How to prepare a financial affidavit?

Each case is different. Prior to preparing your financial affidavit, your lawyer will speak with you about your individual financial circumstances and the strategy behind preparing a financial affidavit in your case.

You should start by gathering the following relevant documents:

• For the income section, those documents may include the following: recent pay stubs, tax forms (W-2s, K-1s, and 1099s), and profit and loss statements.
• For the expenses section, those documents may include the following: credit card statements, bank statements, or household bills. The expenses reflected on a financial affidavit should be regular and recurring, meaning that one-time expenses, such as a new roof for your house, should not be included.
• For the assets section, those documents may include the following: appraisals, bank and investment account statements, retirement account statements, capital account statements, or stock award letters and vesting schedules.
• For the liabilities section, those documents may include the following: statements, bills, or notes.

The next step is to calculate your monthly expenses. Your calculations should be as precise as possible.

Finally, provide your calculations and relevant documents to your lawyer, who will then put the information into a format approved by the court in which your case is pending.

Of course, any questions that arise during the preparation process should be directed to the lawyer with whom you are working.

What is the purpose of a financial affidavit?

The main purpose of a financial affidavit is to provide the court with an explanation of a party’s financial circumstances. Without this information, the court would be unable to make financial orders or orders concerning property distribution. On a secondary level, a well-prepared and accurate financial affidavit can help bolster a party’s credibility in the eyes of the court.

For more information on financial affidavits and other necessary documents when preparing for divorce, make sure to contact Ferro & Battey today. Our highly experienced divorce lawyers are here to answer your questions.