Managing Your Finances: Documents to Provide After Divorce

woman settling financials with her lawyer

The entire divorce process is mentally and physically overwhelming for all parties involved, regardless of who initiated it. Yet, despite the arduous process, reports say couples splitting continues to rise and is predicted to do so in the coming years. In addition, if there are children involved, parents need to closely monitor them. Studies show they are more likely to have increased aggressiveness and behavioral problems due to the split.

Relationships typically get tense and hostile during this time. Because of this, protecting your best interest should be one of the many things you need to keep in mind.

Voluntary disclosure of your financial statements

Both parties are required to reveal personal documents during the divorce procedure. When the decision is finalized, the court order specifies how your assets and liabilities will be divided. In some circumstances, the judge may grant visitation rights or demand child support from both parents based on the documents and information presented.

However, if you disagree with their decision due to worries about the welfare and safety of your child, you may hire a lawyer specializing in child custody. They can help defend your child’s rights and guarantee they get adequate care and support from both of you.

Given these judgments’ extensive and lasting financial ramifications, verdicts must be predicated on accurate and comprehensive information. If you are married and have assets, you are required by law to declare them to your spouse. That includes your financial records containing separate income, basic salary, annual bonuses, and other forms of compensation. Furthermore, each couple must also declare all liabilities and debt responsibilities.

Handling document orders

Some states demand initial and further disclosures before granting legal separation. These documents may include your bank records, retirement plans, investment declarations, tax filings and returns, evidence of cash flows, and other vital records.

On the other hand, couples who agree to forgo the additional disclosure requirements and focus only on the financial disclosures are permitted to do so in several states. So before anything else, check your jurisdiction if it has established forms that you can employ to submit your financial statement. Collate and submit all the necessary information in the time given and no longer than the time limit set out.

What happens if disclosures are incomplete?

Failure to meet your obligations to provide financial information or hide your money and assets during your divorce can lead to severe repercussions. Remember that filing a declaration to the courts requires you to sign a legal agreement certifying that the details you provided were accurate and thorough.

Therefore, keeping any financial information from your divorce filings might end up in the other party charging you with fraud. In such cases, courts frequently give the other side a more significant payment and require the convicted party to cover lawyers’ fees and court expenses.

It is understandable how it might be daunting and onerous to disclose information about your financial holdings, income, and obligations to others. However, there are reasonable grounds for doing so. The materials submitted to the courts are required to assess and decide how to split the assets and responsibilities. This includes, but is not limited to, your properties, vehicles, company shares, retirement benefits, and children.

Know that collating precise financial data on one’s expected living expenditures after your separation takes time. Therefore, consider hiring experts to help you with it instead of doing everything yourself.

What if numerous records are in your spouse’s possession? 

This situation is relatively usual for most married couples. Although beneficial throughout the marriage, this can be a drawback once you are in the process of your divorce. Of course, if you can talk it out together, obtaining certain documents will not be a problem. However, some couples find it hard to communicate with their spouses during the initial split, which is natural.

If they refuse to cooperate, it is essential to create an official structure that includes paperwork, court documents, investigations, and notes before the proceedings begin. You may also seek the assistance of a forensic accountant or request a subpoena and interrogatories to unearth the information you are legally entitled to view so.

Remember that being structured offers various benefits. But you must be prepared for all the challenges it would take to achieve them. As much as you would want this to be over to move forward in life, try not to rush things. Doing so will only harm you, your children, and the chances of a better outcome for you on the divorce.

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