why you need an attorney during a divorce

The Importance Of Full Financial Disclosure With Divorce

19 May 2023 by Diana Butler

Full financial disclosure is of utmost importance during a divorce process as it plays a critical role in ensuring fairness, transparency, and an equitable resolution of financial matters. Read below for the key reasons why full financial disclosure is important:

Division of Assets and Debts

Full financial disclosure allows all parties to have a complete understanding of marital assets and debts. This includes bank accounts, investments, real estate, vehicles, retirement accounts, and any other significant assets. Without accurate and complete financial information, it becomes challenging to achieve a fair division of property and debts.

Spousal Support and Child Support

Financial disclosure is crucial for determining spousal support (alimony) and child support payments. The court considers the income, earning capacity, and financial resources of both spouses in calculating support obligations. Without accurate financial disclosure, it becomes difficult to assess the appropriate amount of support that should be awarded.

Financial Transparency

Full financial disclosure fosters trust and transparency between spouses during the divorce process. It ensures that both parties have access to the same information, reducing the risk of one spouse hiding assets or income. Open and honest disclosure promotes a fair negotiation process and minimizes the potential for disputes or litigation.

Equitable Distribution

In many jurisdictions, divorces follow the principle of equitable distribution, which means that marital assets and debts are divided fairly but not necessarily equally. To achieve an equitable distribution, it is essential to have a comprehensive understanding of each spouse's financial situation. Full financial disclosure enables the court to make informed decisions about the division of assets and debts based on the specific circumstances of the case.

Preparing for Mediation or Trial

If the divorce case goes to mediation or trial, full financial disclosure is crucial for presenting accurate information and supporting arguments. Any lack of disclosure or attempts to conceal assets can significantly undermine a party's credibility and potentially lead to legal consequences. 

Avoiding Future Disputes

Full financial disclosure helps prevent future disputes related to undisclosed assets or income. By providing complete financial information during the divorce process, the parties can address and resolve financial matters comprehensively, reducing the likelihood of post-divorce litigation or the need to reopen the case in the future.

Seeking guidance from a divorce attorney or financial professional with experience in divorce matters can help ensure that full financial disclosure is properly addressed and that the divorce process proceeds with fairness, integrity, and efficiency.

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