:max_bytes(150000):strip_icc()/GettyImages-1455755030-a8afd94af9314a698fb94e43b80edf31.jpg)
As an attorney, Vanessa spends her time assisting her clients with estate planning, Medicaid planning, probate, and general business counseling matters. Her estate planning work includes critically thinking through the specifics of each client's estate plan (and the potential tax implications thereof) and the drafting of wills, trusts, health care directives, and powers of attorney.
Published on January 27, 2023 In This Article In This Article
A financial affidavit is a sworn and notarized statement of your assets, income, expenses and debts that you must share with your spouse and the court in order to finalize a divorce.
In divorce, separation, and family court proceedings, you often will be required to provide the court with financial information. The information, such as income, assets, debts, and expenses, is gathered on a form typically called a financial affidavit. In a divorce, the court needs these details to rule on matters such as child support and spousal maintenance, or alimony.
The form requires you to calculate your monthly income and expenses. This includes details about different types of income, your employment, how often you get paid, what kind of tax deductions you get, and how much you spend on gas and other utilities. You will also need to lay out your debt obligations and how much you spend per month, in addition to all expenses related to any dependent minor children or prior alimony payments.
Failure to provide accurate information on the financial affidavit may lead to monetary fines and imprisonment.
Without a full and fair financial disclosure, via a financial affidavit, one spouse may waive their right to an asset or income they did not know existed. Lack of accurate disclosure could be grounds for setting aside divorce settlements and the courts want to be sure that such settlements and court judgments remain final. For this reason, courts almost always require a financial affidavit.
Let’s say you and your spouse decide to get a divorce and you have one minor child. Even if both spouses mostly agree on the terms of your divorce, the court requires that you both complete a financial affidavit, and swear to its truth in front of a notary. That notarized document then becomes part of your court record.
The information you provide on it becomes a factor in how the court will determine any child support that may be due from one spouse to another, and may also be used to determine maintenance if you and your spouse cannot agree on terms. It may also be used to determine how legal fees may be allocated between spouses.
While most information filed before the courts is a matter of public record, in certain circumstances, financial affidavits may be kept confidential. States have their own rules and procedures about which information can be kept confidential and how.
State courts determine rules around divorce, so a financial affidavit form and the rules for filing it will vary depending on the state you live in. The form or a template for a financial affidavit is usually provided by the state or jurisdiction where your divorce proceedings take place.
For example, depending on the jurisdiction a financial affidavit may also be called a financial disclosure affidavit, an annual income worksheet, a financial statement, or sometimes a statement of net worth.
This is what a financial affidavit looks like in the state of New York, for example. If you are going through a divorce, check in with an attorney or your state regulations to see what rules apply to you.
Some states have different financial affidavit forms—long form and short form—depending on the income of the spouse filing the form. Income thresholds determining which form you need to file also vary by state. For example, a Florida resident making more than $50,000 annually needs to file the long financial affidavit, but if they made less than $50,000 they would need to file the short financial affidavit form. A similar threshold for filing a long financial affidavit form for Massachusetts is $75,000.
The financial affidavit should be filed and shared with your soon-to-be ex within a specific time period, which is determined by the courts in your state. For example, in Massachusetts, you must share the financial affidavit you file within 45 days of the start of the divorce proceedings. In Connecticut, spouses must file and share the financial affidavits at least five days before and no more than 30 days before their first court hearing.
Even if you and your spouse have a marital agreement, such as a prenup, postnup or separation agreement, the court has the final say in how your assets are split. While they are necessary for child support cases, the court may require a financial affidavit even if you do not have a child.
However in some circumstances, the courts may allow both spouses to waive the requirement of filing the financial affidavit. This can happen if the divorce is uncontested, or if the spouses file for a simplified dissolution of marriage. Simplified dissolution of marriage is a process where both spouses are in agreement about terms of the divorce and have no minor children. A simple dissolution typically requires fewer forms and paperwork.
In these instances, if both parties agree to the financial settlement, and there is no request for the court to rule on any permanent financial relief such as child support, alimony, and division of the assets, the court may proceed.
Once you determine that a financial affidavit is needed, it can usually be found on the website of the court where the matter is pending, or from the clerk in that county.
In most cases, the state provides detailed instructions for filling out the financial affidavit. Your attorney may also provide the form to you and assist in its completion.
For the purpose of filing a financial affidavit, you need to calculate your monthly income and expenses. If you get paid hourly wages or have expenses that are not incurred on a monthly schedule, you would need to convert that to a monthly average.
For example, here’s how that calculation would look like if you got paid by the hour:
Hourly wage x hours worked in a week = Weekly wage
Weekly wage x 52 weeks = Annual Wage
Annual Wage / 12 months = Average Monthly Wage
Similarly, if you get a biweekly paycheck, your average monthly income look like this:
Average monthly income = (Biweekly amount x 26 weeks) / 12 months
You will need to make similar calculations for monthly expenses.
In order to complete the form, you will need to attach certain documents in support of the income and expenses you mention in the financial affidavit. Required documents include:
Different states may have different rules regarding documents you need to attach with your financial affidavit. For example, Florida requires six months of pay stubs while Minnesota requires the most recent month’s pay stub, and three months’ pay stubs if possible.
If the court is relying on your financial affidavit to make any ruling, they will take into account your income and any deductions, your debts and liabilities, your assets (including real estate, personal property, and financial assets), the assets of your children, and your health insurance information.
A financial statement in divorce is another term for a financial affidavit. It directs you to lay out your financial situation—including your assets, income, debts, and obligations—to both the court and your spouse. What the form is called will vary based on jurisdiction. These forms are needed in nearly all circumstances, however may occasionally be waived where the court is not ruling on any financial issue, such as alimony, asset division, child support or legal fees.
When completing a financial affidavit, you must provide information as indicated on the court-provided form. Typically, a financial affidavit will ask you to provide your income, assets, expenses, debts and liabilities, and health insurance information. You would also need to attach documents like pay stubs and bank statements. After you provide the information, you must certify its truth in front of a notary public, lawyer, or court clerk.
A financial settlement is typically part of a bigger marital settlement agreement in which the couple agree about their rights and obligations after the divorce. This marital settlement agreement may include provisions that speak to child support and custody, alimony, and division of property. If you and your spouse do not agree on the financial issues, then a trial will be needed and a judge will make a ruling.
