In Divorce, Pay Close Attention To Financial Documents
Each party in a divorce action is required to provide full disclosure of any assets in which he or she has any interest, regardless of where the assets are located, using a standard financial disclosure form provided by the court system or the party’s attorney. Assets a party must disclose include real estate, checking and savings accounts, stocks and bonds, mortgages or promissory notes (showing money owed to the party), life insurance, business interests, personal property and retirement plans. Each party must also disclose his/her income from employment or any other source, as well as all debts and financial liabilities of either or both parties.
The standard disclosure form required by the court system contains a signature line for the party and the statement that complete disclosure of assets and debts is required by law. Deliberate failure to provide complete disclosure constitutes perjury. If the parties have any minor children, they must also furnish information to the court regarding what health insurance coverage is available for the children through each party’s employment or another organization.
When To Provide Financial Disclosure
By statute, each party is to file his or her financial disclosure statement with the court within 90 days of the date the joint petition is filed, or the respondent is served with the summons and petition. Each party is required to update his or her financial information at the time of the final hearing. Also by statute, each party’s financial information is sealed after the final hearing, and it may not be made available to anyone, other than for further litigation, appeal, modification or enforcement of the parties’ judgment. If a party fails to provide a financial disclosure statement, as required by the statutes, the court may accept the other party’s information as accurate.
What To Include In Your Documentation
In order to put together a complete financial disclosure statement for divorce, you should gather the following financial documents:
- The last two years of state and federal income tax returns and W-2s
- The last 12 weeks of pay stubs from your employer, or other documentation of your income, from all sources
- Titles to any vehicles
- The latest statement from any pension or profit-sharing plan, showing its value
- A summary description of any health plan, if you have minor children
- The latest statements from any investment accounts
- The latest statement from any credit card accounts or other debts
If you own real estate, you will need to gather:
- Warranty deed
- Latest tax bill
- Any appraisal or assessment of the property
- The current balance of any mortgage or other lien against the property
Common Mistakes To Avoid When Gathering Financial Records
Many people make avoidable mistakes when preparing their financial disclosure. Forgetting old retirement accounts from previous employers happens more often than you might think. These accounts still count as marital assets even if you haven’t contributed to them in years. Leaving out jointly held debts creates an incomplete picture of your financial situation. Both parties share responsibility for joint credit cards, loans and other debts, so you need to disclose them fully.
Failing to disclose side income or freelance income can create serious problems. The court requires you to report all income from all sources, including cash payments, gig work, rental income or any other money you receive. Not updating account balances before the final hearing means your disclosure may no longer reflect your actual financial situation. Account balances change, and the court needs current information to make fair decisions.
Assuming assets in one spouse’s name do not need to be disclosed is a common error. Wisconsin is a marital property state, which means assets acquired during the marriage typically belong to both spouses regardless of whose name appears on the account or title. You must disclose these assets even if you believe they belong only to your spouse.
Misplacing tax returns, mortgage documents or business records delays the process and creates frustration. Keep copies of all financial documents in a safe place where you can access them quickly. Missing paperwork forces you to request duplicates from banks, employers or the IRS, which takes time you may not have.
How Organized Records Can Help Your Attorney
When you bring organized financial documents to your attorney, you give them the information they need to evaluate your marital estate accurately. Your attorney can identify what assets exist, determine their value and spot potential issues early in the process. Organized records also help your attorney prepare for negotiations with your spouse or their attorney. Clear documentation supports your position and makes it easier to reach a fair settlement.
Having your financial records ready saves time and reduces stress during your divorce. You won’t spend weeks searching for missing documents or scrambling to meet court deadlines. Your attorney can focus on building your case instead of chasing down paperwork. This preparation gives you more control over the process and helps you move through your divorce more efficiently.
Contact Us For Support
Whether you chose to represent yourself or you need an attorney to guide you through divorce, Friedrich & Fletcher, S.C., can help you. Our attorneys spend time getting to know each client and their financial details. For a consultation, email us in Madison or call 608-258-4660.