Contact Us for a Free Consultation (816) 615-5555

Divorce Advice & Resources

What Role Does Financial Disclosure Play in Divorce Cases?

Posted by Crissy Del Percio | Dec 21, 2019 | 0 Comments

financial disclosure divorce cases

Divorce proceedings can be complex and involve an in-depth evaluation of both spouses' finances, which often leads to financial disclosure being an essential aspect of law for divorcing parties. Financial disclosure has significant ramifications for all parties involved. Let's explore its significance as part of divorce law.

 

Legal Obligations
Divorcing parties must disclose financial information as part of the divorce process. Spouses should provide an accurate and complete account of all of their assets, liabilities, and income to complete this step in the disclosure process and determine fair distribution and maintenance payments or payments for their marital assets.

Complete an Asset Inventory
Financial disclosure involves creating an inventory of all the assets owned by each spouse in the marriage, such as real estate, bank and investment accounts, retirement funds, vehicles, and any other substantial holdings. Both partners must present all assets that belong to them, this prevents either party from hiding assets or trying to manipulate distribution in their favor.

Overall Debts and Liabilities
Financial disclosure requires providing detailed lists of liabilities and debts, such as mortgages, loans, and credit card debts. With such information at its fingertips, courts can make better decisions regarding financial settlement and debt allocation.

Sources of Income and Earnings
Income source disclosure is crucial in divorce, requiring both parties to provide accurate information about their income sources, such as employment, company earnings, and investment returns which can impact child and spousal support responsibilities and aid the court in determining maintenance payments.

Monthly Expenses
It can be easy to forget when discussing financial disclosure that monthly expenditures should also be addressed in full. A court can assess each spouse and any dependents by reviewing living expenses, education costs, and healthcare expenditures among other regular outlays, information that will allow fair and realistic support agreements to be drawn up.

Consequences for Non-disclosure
Financial disclosure obligations can have serious repercussions when violated. Courts view attempts at concealment as breaching trust, as well as violating legal procedures. If this information comes to light after divorce, consequences could include financial penalties or sanctions.

Effect of Property Division
Financial disclosure plays a key role in property division. A court can make an equitable decision when both parties provide complete and accurate information; non-disclosure may lead to unfair distributions that disadvantage one side more than the other.

Spousal Support Determinations
Financial disclosure plays an important role in assessing spousal maintenance or alimony payments since courts evaluate each spouse's capacities, requirements, income, assets, and spending. Inaccurate or inadequate disclosure can result in unjust maintenance rulings that fail to represent reality for all parties involved.

Child Support Assessments
Financial disclosure is crucial in child cases, as courts consider each parent's resources when determining child maintenance payments. Being transparent about income sources ensures children's needs are met without concealing income, which could negatively impact them in the future.

Promoting Fairness & Transparency
Financial disclosure enhances the transparency and fairness of divorce proceedings beyond legal obligations and any potential ramifications. By sharing financial data, both parties can negotiate from a position of knowledge, which reduces disputes and ensures a more peaceful resolution of their divorce.

 

Financial disclosure is an integral component of divorce proceedings and plays an important role in shaping court decisions regarding child support, spousal maintenance, and property division. To achieve an equitable divorce and protect our integrity during this process, fulfilling legal requirements related to financial disclosure is paramount. Any consequences of nondisclosure show the importance and value of being honest and forthcoming about finances during the divorce proceedings process.

If you want to learn more about financial disclosure or if you need to hire a divorce lawyer, call Drama Free Divorce today at (816) 615-5555

About the Author

Crissy Del Percio

Crissy Del Percio is a graduate of the University of Missouri-Kansas City School of Law. Additionally, she received her undergraduate degrees in Journalism (News and Information) and Communication Studies from the world-renowned home of the Jayhawks – the University of Kansas. She has been practicing law for a decade and spent the first part of her career specializing in helping low-income survivors of domestic violence. Now at Drama-Free Divorce, Crissy enjoys helping people consciously uncouple. She is also a Guardian Ad Litem and domestic mediator. Crissy has won a number of prestigious awards for her work in public service, but you likely recognize her from her acting career, where she is also an award-winner. In her free time, she enjoys spending time with her egregiously overpriced dog, Augustus Rodham and knitting. 

Comments

There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Contact Us Today

Drama-Free Divorce LLC is committed to answering your questions about Divorce law issues in Kansas City, MO and KS.

I'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

Read our blog on Divorce Law in Kansas City.

Menu