Financial information can become one of the most important parts of a contested divorce. When spouses disagree about property, income, debts, support, or other financial matters, accurate disclosure can help ensure that decisions are based on complete information.
A Contested Divorce Attorney can help a client gather relevant financial documents, review information provided by the other spouse, and address concerns when disclosures appear incomplete or inaccurate.
What Are Financial Disclosures?
Financial disclosures are documents and information used to provide a clearer picture of each spouse’s financial circumstances. Depending on the case, this may include information about income, bank accounts, investments, real estate, debts, retirement accounts, and other assets.
The specific disclosure requirements can vary depending on the jurisdiction and circumstances of the divorce.
Gathering Your Financial Records
A Contested Divorce Attorney may first help the client organize their own financial information. Relevant records can include:
- Pay stubs and income records
- Tax returns
- Bank statements
- Investment account statements
- Retirement account records
- Mortgage documents
- Credit card statements
- Loan records
- Property documents
- Business financial records
Organizing these documents can make it easier to identify assets, debts, and income sources.
Reviewing the Other Spouse’s Disclosures
Receiving financial information from the other spouse does not necessarily mean the information is complete.
An attorney can review the documents for inconsistencies, missing information, unexplained transactions, or other issues that may require clarification.
Comparing Financial Records
Financial documents can sometimes tell different stories. For example, information in a tax return may not appear consistent with information in a bank statement or other financial record.
A Contested Divorce Attorney can compare available records and identify discrepancies that may need further investigation.
Using Discovery When Information Is Missing
If a spouse does not voluntarily provide necessary financial information, formal discovery may be available depending on the applicable court rules.
Discovery can involve requests for documents, written questions, or other permitted methods of obtaining relevant information.
An attorney can determine which discovery tools may be appropriate for the circumstances.
Investigating Possible Hidden Assets
In some contested divorces, one spouse may be concerned that assets or income have not been fully disclosed.
Potential issues could involve undisclosed accounts, property interests, business income, transfers to other people, or unusual financial transactions.
A lawyer can review the available information and determine whether additional investigation or discovery is appropriate.
Addressing Business Interests
Financial disclosures can become more complicated when one or both spouses own a business.
Business records may provide information about revenue, expenses, compensation, ownership interests, and other financial matters. Depending on the circumstances, professional valuation or accounting assistance may also be necessary.
Reviewing Debts and Liabilities
Financial disclosure is not limited to assets. Debts can also affect the overall financial picture of a divorce.
A Contested Divorce Attorney can help identify mortgages, loans, credit card balances, business debts, and other obligations that may need to be addressed during the divorce.
Using Financial Information During Negotiations
Accurate financial information can make settlement negotiations more productive. Once the spouses have a clearer understanding of the assets and liabilities involved, they may be better positioned to evaluate possible settlement proposals.
An attorney can use the available information to negotiate on the client’s behalf while continuing to address unresolved financial questions.
Preparing Financial Evidence for Court
If financial disputes cannot be resolved through negotiation, the information gathered during disclosure and discovery may become important in court.
A Contested Divorce Attorney can organize relevant financial records and present evidence concerning disputed assets, income, debts, or other financial issues.
Final Thoughts
Financial disclosures can play an important role in a contested divorce because property division and support decisions depend on accurate financial information. Missing or inconsistent information can make an already complicated case more difficult.
A Contested Divorce Attorney can help gather records, review financial disclosures, use appropriate discovery procedures, investigate potential discrepancies, and prepare financial evidence when necessary. The specific disclosure requirements and procedures depend on the laws and court rules that apply to the divorce.