PREPARING FOR DIVORCE: FINANCIAL DISCLOSURE PROCESS
Many of our clients come to us prior to separating from their spouse to gain some information. One of the most popular questions is - how can I best prepare for my divorce? In this new blog series, award-winning attorneys give their professional advice and insights on various aspects of the divorce process and how you can best prepare yourself before your divorce is even filed.
The financial disclosure process is arguably one of the most daunting tasks in a divorce or custody case. In every domestic case, parties owe each other a duty of full disclosure. This almost always includes financial disclosure. This helps the Court to allocate debt and property, as well as properly calculate maintenance and/or child support. When considering a divorce or custody case, you should know that the financial disclosure requirement is immediate, and you have a very short window within which to complete the process. Being prepared ahead of time, knowing what documentation and information you will need to have, will help you tackle this task with confidence.
The first step we say is to always gather your documents. Financial disclosures are an important part of every divorce. You will be required to provide the other party with your last several years of tax returns, monthly bank statements and credit card forms, pay statements, and other various documents proving your assets and debts. Take the time prior to filing for divorce to gather all of these necessary documents. This will make the initial filing process significantly less stressful. It will also ensure that your records are accessible to you once you have filed; your spouse will not be able to hide information if you have already ensured that you have copies of important documents.
The second step is to start the process of obtaining proof of premarital assets. If you owned any real estate, investment accounts, bank accounts or other asset prior to getting married, you will need to prove the value of those assets on the date of marriage in order to have that value attributed as your separate or premarital property. This process can often take a significant amount of time to complete as mortgage companies change, investments are diversified, and institutions are acquired by others. Tracking down the premarital value of assets is often a months long process depending on the length of your marriage so it’s a good idea to get started on that now.
A third step to take when preparing for divorce is to photograph your marital home. Personal property often is forgotten until the very end of a divorce. By that time, items could have been removed or sold without your consent and thus need to be accounted for in your permanent orders. By taking photos of your home before filing, you are preserving your property interest in personal property.
Finally, you can prepare for a divorce financially by planning how you will pay your attorney’s fees and other expert costs. Whether this be reserving funds from a savings or investment account, taking out a personal loan or applying for a new credit card, knowing how you will pay your legal fees throughout your divorce will guarantee you a peace of mind as you begin the process. You can speak to an attorney in your area to determine how much money you should have reserved for retaining an attorney and any other experts that may be necessary.
Every case has varying factors, so if you are beginning to think about the process of filing for divorce, call our office today to schedule your free consultation to strategically plan your case-specific needs.