During divorce proceedings, both parties are required to submit a net worth affidavit. While this has been a traditional practice in New York family courts for years, recent amendments to the form require the inclusion of additional expenses and liabilities.
The recent changes made to the affidavit of net worth form are the first that have been made in 20 years. The revisions clarify what personal and financial information must be disclosed by each party. Some of the biggest changes include:
- The inclusion of gender-neutral language;
- The simplification and elimination of confusing categories; and
- The inclusion of updated financial categories that are more applicable to modern day expenses.
Based on these changes, the new form now requires the disclosure of basic financial information, such as expenses, which could include:
- Mortgage payments;
- Homeowners’ Association dues;
- Insurance; and
- The amount of attorney and expert fees being paid.
However, the parties are also required to record their gross incomes, including:
- Checking accounts;
- Savings accounts;
- Real estate;
- Retirement accounts;
- Business interests; and
- Life insurance policies.
Finally, all debts must be noted, including credit card debt, loans, mortgages, and lines of credit. Even when a party is not sure of an exact amount or cannot obtain copies of the necessary documentation, he or she still cannot leave any items blank.
To satisfy the requirements of the net worth statement completely, the parties will also need to attach the following documents:
- Any retainer agreements formed with an attorney;
- Each party’s most recent W2’s; and
- Copies of 1009s, K1s, and income tax returns.
When completed, the affidavit must be signed, notarized, and exchanged by the parties within 20 days of the receipt of a written demand for financial disclosure and submitted at the Preliminary Conference.
Contact us Today to Speak With an Experienced Syracuse Divorce Attorney
Although the new financial affidavits are much clearer than before, they still require the collection of a significant amount of financial data. Compiling all of these records can be time-consuming and mistakenly forgetting an expense or a source of income can set divorce proceedings back weeks or even months. At the Bombardo Law Office, P.C., we understand that going through a divorce is an emotional process and are dedicated to helping give our clients peace of mind by handling their complex legal matters with efficiency and professionalism, so if you are considering a divorce, please call us at 315-488-5555 to schedule an initial consultation with an experienced and compassionate divorce attorney.