The financial affidavit is a legally certified and documented statement of your assets, income, expenses, and debts that you must share with your spouse and the court to finalize a divorce.
How does the financial affidavit work in a divorce case?
In divorce, separation, and family law proceedings, you may often be required to provide financial information to the court. Information such as income, assets, debts, and expenses is collected on a form usually called a financial affidavit. In a divorce case, the court requires these details to make decisions on matters such as child support and alimony. The form requires you to calculate your monthly income and expenses. This includes details about different types of income, your job, how often you get paid, what tax deductions you receive, and how much you spend on fuel and other services. You will also need to outline your financial obligations and how much you spend monthly, in addition to any expenses related to any minor children who depend on you or previous alimony payments.
Warning
Failing to provide accurate information on the financial affidavit may result in fines and even jail time.
Example of a financial affidavit in a divorce case
Suppose you and your spouse decided to divorce and you have one minor child. Even if the spouses largely agree on the terms of your divorce, the court requires you to complete the financial affidavit and its related sections and affirm its accuracy before a notary public. This certified document then becomes part of your court record. The information you provide will factor into how the court determines any child support that may be owed from one spouse to the other and can also be used to determine how to distribute legal fees between the spouses.
Important
While most of the information submitted to the courts is a matter of public record, in some cases, financial affidavits can be kept confidential. States have their own rules and procedures regarding what information can be kept confidential and how.
Financial affidavits vary by state
State courts set divorce rules, so the financial affidavit form and rules for submitting it will vary depending on the state you live in. Typically, the state or jurisdiction where your divorce proceedings are taking place provides the financial affidavit form or template.
Income levels and financial affidavits
Some states differ regarding financial affidavit forms – the long form and the short form – depending on the income of the spouse submitting the form. The income thresholds that determine which form you must submit also vary by state. For example, a Florida resident earning over $50,000 per year must submit the long financial affidavit, but if they earn less than $50,000, they will need to submit the short financial affidavit. A similar threshold for submitting the long financial affidavit in Massachusetts is $75,000.
Sharing information with your spouse
The financial affidavit must be submitted and shared with your former spouse within a specific timeframe, which is set by the court in your state. For instance, in Massachusetts, you must share the financial affidavit you submit within 45 days of initiating divorce proceedings. In Connecticut, spouses must submit and share their financial affidavits at least five days but no more than 30 days before their first court hearing.
When to submit the financial affidavit?
Even if you and your spouse have a marital agreement, such as a pre-nuptial agreement, post-nuptial agreement, or separation agreement, the court has the final say in how to divide your assets. Although it is essential for child support matters, the court may require a financial affidavit even if you do not have children.
And with
In some cases, courts may allow both spouses to waive the requirement to provide a financial affidavit. This can happen if the divorce is uncontested, or if the spouses have filed a request to simplify the divorce process. Simplified divorce is a process where the spouses agree on the terms of the divorce and have no minor children. The simplified process requires fewer forms and paperwork.
How to Submit a Financial Affidavit?
Once it is determined that a financial affidavit is required, it can usually be found on the website of the court handling the case, or from the clerk of court in that state.
In most cases, the state provides detailed instructions for filling out the financial affidavit. Your attorney may also provide you with the form and assist you in completing it.
Calculating Your Income and Expenses
For the purposes of submitting a financial affidavit, you need to calculate your monthly income and expenses. If you are paid hourly or have expenses that you do not incur monthly, you should convert that into a monthly average.
For example, this is how to calculate monthly income if you are paid hourly:
Hourly wage × hours worked per week = weekly wage
Weekly wage × 52 weeks = annual wage
Annual wage ÷ 12 months = average monthly wage
Similarly, if you are paid biweekly, your average monthly income would be as follows:
Average monthly income = (weekly amount × 26 weeks) ÷ 12 months
Documents Required to Submit a Financial Affidavit
To complete
Source: https://www.thebalancemoney.com/what-is-a-financial-affidavit-in-a-divorce-7100138
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