If you are going through a divorce in New Jersey, it is crucial that you understand the important role financial disclosure plays in the process. Whether both parties are fully transparent has a significant impact on the outcome of the settlement agreement. For more information, read on and consult with a Morris County, NJ divorce lawyer today.
What is Financial Disclosure?
In a divorce, financial disclosure is the process of each spouse providing the other with information about their financial situation. Each party must share a complete and accurate account of their assets, income, debts, and expenses to give the other spouse and the court a clear view of their economic standing.
During the divorce process, each party will be required to provide a variety of financial documents, affidavits, pay stubs, tax returns, bank statements, and other information to establish their financial status. Important information includes income, mortgages, credit card balances, student loans, personal loans, bank accounts, retirement accounts, investments, real estate, vehicles, personal property, and more.
What Role Does Financial Disclosure Play in an NJ Divorce?
One of the most important aspects of the divorce process is the discovery phase, which is the formal process of gathering and sharing information pertaining to the divorce. This information is crucial to ensure fair decisions are made regarding financial matters like the division of property, the allocation of debts, spousal support orders, and child support orders.
During the discovery process, full financial disclosure is imperative in order for the court to make decisions on these issues. Without total transparency, one spouse could hide assets, underreport earnings, or disguise their true financial situation, causing the other to be disadvantaged by the outcome of the divorce agreement.
New Jersey is an equitable distribution state, meaning that when it comes to property and debt division, the court has the authority to split things based on what is fair not necessarily equal. They take into account the income, earning capacity, and health of each spouse, among other things like contributions made to the marriage. Spousal support and child support is also dependent on the receiving spouse and child’s needs compared to the paying spouse’s ability to pay. Without full disclosure, the court’s decisions will not reflect the true financial situation of each party.
Financial disclosure is also important to ensure that both parties are complying with state law. New Jersey legislation requires both spouses in a divorce to participate in total transparency regarding financial matters. It is considered fraudulent to provide false or incomplete information. If either individual is caught withholding information or falsifying records, they could face serious civil and criminal consequences.
Understanding the role that financial disclosure plays is crucial if you are filing for divorce. To secure skilled legal representaiton during your case, contact an attorney at Townsend, Tomaio & Newmark, LLC today.
