If you’re considering divorce and worried that you don’t know much about your spouse’s finances, New York law offers protection. Spouses have the right to access financial records related to the marriage during divorce proceedings. Typically, each side will request records from the other, but a question that frequently arises is how much information can be requested. Do you have the right to your spouse’s past financial records for an unlimited number of years?
Why Do I Need Financial Records from My Spouse?
As part of your divorce, you and your spouses must divide your marital assets and decide issues of spousal and child support. To make a fair determination, both sides must fully disclose their current and past finances. This is true regardless of whether you are negotiating a settlement on your own or a judge is deciding the matter.
What Financial Records Can I Get from My Spouse?
You can obtain a wide array of records, including bank, retirement and investment accounts, loans, credit card balances, insurance policies, wills, trusts, deeds/title certificates, tax returns, business records and other relevant documents.
How Many Years of Financial Records Can I Get?
You have the right to financial documents from the beginning of the marriage up until the date a divorce action is filed, regardless of how many years have passed. If you’ve been married for 20 years, you should have access to 20 years’ worth of records. Keep in mind, however, that financial institutions generally have a seven-year records retention rule, meaning that only the last seven years’ worth of records are available from your spouse’s financial institution. Thus, unless your spouse kept all of his or her financial records from the beginning of the marriage, you will be limited to the seven years that the financial institution maintains on your spouse’s behalf.
With this said, courts recognize the need to balance those rights against the burden of producing old records, including the time and expense involved and the availability of such documents. In most cases, it is best to start by requesting the last three years of financial records. If there is evidence of misappropriation or waste of marital assets, then you can seek records for additional years.
How Can I Show Waste of Assets?
If you suspect your spouse spent money wastefully, including hiding purchases given to another person, you will have to provide evidence. Your spouse’s financial records will probably have red flags like payments to unknown parties and suspicious withdrawals and transfers from accounts.
You must show that the spending was on things that didn’t benefit the marriage and were not consistent with how you and your spouse acted during the marriage. For example, if both of you made extravagant purchases for yourselves and didn’t tell each other, then it’s not a waste of marital assets.
Justifying a request for more records is important because a judge will look at whether you are being reasonable. Unfortunately, in some cases, a party can become abusive and predatory in demanding documents. The court will look more favorably on a party that demonstrates a valid reason for asking for old records.
What If My Spouse Won’t Give Me Financial Records?
If your spouse refuses to provide financial records, you can also subpoena a third party with relevant financial information, such as accountants, financial advisors, employers and financial institutions. However, as previously mentioned, many financial institutions do not keep records for more than seven years. Smaller institutions may keep older ones, but it still may be time-consuming and expensive to obtain them.
If you are considering divorce, start gathering financial records and contact an attorney for advice.
Working with an experienced matrimonial attorney can help ensure you get the documents you need and achieve a positive outcome in your case. Contact us to assist you in getting the best result possible.
