Many couples want a simple, amicable divorce, especially if the marriage didn’t last long. In order to speed up the process and avoid antagonizing the other spouse, they cut corners on getting experienced legal advice and doing a careful review of each other’s finances. While spouses may trust each other, generally, it’s still best to review all financial documents before anyone signs a settlement agreement that divides assets and provides support.
What Financial Records Should You Review in Divorce?
In divorce, you have the right to financial records related to the marriage, including financial accounts, mortgage and loan documents, credit card statements, insurance policies, wills, trusts, deeds, title certificates, tax returns, employment and business records and other relevant information. Typically, you start by requesting documents from the last 3 years or the length of the marriage, whichever is shorter. If the documents show evidence of fraud, misappropriation or waste of marital assets, you can go back further.
Why Should You Obtain Financial Information from Your Spouse in Divorce?
Marital assets are subject to equitable distribution under New York law. While parties can give up their rights to assets, both sides must first know what assets exist and what they are worth in order to make an informed decision.
Even if you and your spouse have separate financial accounts, you each have a right to the other’s income. Marriage is an economic partnership, and your respective earnings during marriage are marital property unless you have a prenuptial or post-nuptial agreement that states otherwise, or is derived from separate property. Separate property is property that is either acquired before the parties marry, as a provable gift specifically to one party of the marriage, or through an inheritance during the marriage. It is not subject to equitable distribution, unless it is commingled with marital funds or used to pay marital expenses.
Financial information is also needed to calculate spousal and child support because these are calculated as a percentage of income by statute.
If you don’t have complete financial records, you risk agreeing to an unfair settlement and losing out on assets and support payments.
How Do You Raise the Topic?
In an amicable divorce or where you want a fast divorce, you may feel uncomfortable asking for financial records, but you are entitled to the information under the law. You also don’t want to find out later that there were assets you didn’t know about.
What If Your Spouse Doesn’t Want to Provide Financial Records?
If your spouse refuses to give you financial information, you can ask the court to order your spouse to produce the documents or subpoena a third party who has the records, such as an accountant or employer.
It’s important to hire a skilled matrimonial lawyer to protect your rights and advocate for your best interests. Contact us for a consultation to learn how we can help you achieve a positive outcome in your divorce.
