If you’re getting a divorce, an important step in the process is for you and your spouse to each provide a sworn statement of net worth. The purpose of this document is to disclose financial information relevant to determining spousal and/or child support as well as property distribution. Because you must sign the document under oath, it is essential that the information be accurate and complete.
What Is Included in the Statement of Net Worth?
Parties are required to provide information on the following:
- Assets of any kind and nature and wherever situated (e.g., cash, financial and retirement accounts, real estate, jewelry, vehicles, business interests, etc.)
- Liabilities (e.g., mortgage, credit card debt, lines of credit, home equity loans, taxes, etc.)
- Income from all sources
- Expenses
- Assets transferred in any manner during the preceding three years, or length of the marriage, whichever is shorter
- Monthly household expenses (e.g., food, clothing, transportation, education, recreation, insurance, housing, utilities, taxes, child care, home maintenance, etc.)
In addition, the form asks for family information such as each spouse’s name, address, date of birth, social security number and occupation, and the names and dates of birth for any children the couple has together as well as for minor children from a prior marriage.
Each party must also indicate whether they’re receiving or requesting spousal or child support and the amount. An attorney can advise as to how much to request. Fees to pay an attorney, accountant, appraiser and other experts can also be requested.
Where Do You Obtain Information to Complete the Statement of Net Worth?
The first step to take is to gather all your financial documents. Your expenses can be calculated from copies of bills, receipts and bank and credit card statements. Your income is reflected on your most recent W-2s, 1099s, K1s and tax returns. All assets should be listed and their value determined through financial statements, professional appraisal(s) and/or other means. Liability information may be indicated on loan agreements, credit card statements and other documents.
How Can You Avoid Mistakes?
You have a legal obligation to provide accurate and complete information in the statement of net worth. Failure to do so can result in a charge of perjury because you’re making a sworn statement. It can also affect your credibility with the court. A party who gives estimated figures or makes mistakes can come across to the judge as a person who isn’t taking the matter seriously or is possibly withholding information.
To avoid problems, the key is to confirm every number against financial documents and then double-check them again to ensure there are no mathematical errors or typos. For expenses, review the monthly amount over 12 months and then calculate the average to report on the form. Do not round up, instead try to report a figure that is as accurate as possible.
The statement of net worth can feel overwhelming and confusing to fill out so get assistance if needed. A lawyer, accountant and/or other financial expert can help, especially if you have complicated assets and/or multiple sources of income.
If you’re considering divorce, contact us to learn how we can help you achieve a positive result in your divorce.
