Financial matters are a key aspect of any New York divorce. When people are going through the emotional and personal turmoil of the end of a marriage, they might let these issues pass without fully understanding their importance. This is a mistake.
The income, assets and debts of both parties are key for determining issues such as spousal support and child support, and they are vital for property division. Knowing the law regarding compulsory financial disclosures in a marital action like divorce is important.
Know the facts about compulsory financial disclosures
The parties must provide full accounting of their assets and debts, and they must make sworn statement of their net worth.
The spouses must provide a current pay stub and their tax returns, but the requirements don’t end there. For example, if the person has a bank account in their name, owns an automobile, has a retirement plan or has collectibles, these will be counted, calculated as to their value and given to the court.
Courts also require information about any assets that were transferred in the previous three years or for the duration of the marriage – whichever is the shorter period. The sworn statement must have proof of the net worth.
The parties must give information about health plans they are eligible for in order to make sure their children will be supported.
Separate property stays separate. Marital property must be divided by equitable distribution. This means that the court will assess the property, how it was accrued and try to come to a fair resolution.
Finances play a key role in the outcome of a divorce
Throughout a divorce proceeding, people will consider many issues. Most are somehow connected to finances. Finances are the foundation for a seemingly endless list of disputes. It can be important to seek out help from professionals who understand the technical details and the strategies that can help divorced people to keep the resources they need when they begin the next chapters in their lives.