It’s been said that marriage is all about feelings, but divorce is all about practical and financial considerations – and that’s largely true. Whatever the emotions that are going on behind the scenes, the focus of the divorce process is largely on ensuring a fair and equitable resolution of all the couple’s financial entanglements.
A Statement of Net Worth is a comprehensive financial document required in New York divorce cases. It provides a detailed overview of each party’s financial situation, including income, expenses, assets, and liabilities. Both parties in a divorce are required to complete and exchange this document, which must be sworn to under oath and notarized.
Why the Statement of Net Worth must be complete and accurate
The Statement of Net Worth is a critical document for several reasons:
- Ensuring the equitable distribution of assets and liabilities: New York uses the equitable distribution system, which means marital assets and debts are divided fairly – and not necessarily equally or 50/50. The Statement of Net Worth provides the court with a clear picture of each party’s financial situation, which is essential for making informed decisions about the division of assets and debts.
- Justifying spousal support (alimony): The document helps determine the need for and amount of any spousal support that might be due. By detailing each spouse’s income and expenses, the court can assess their individual financial capabilities and needs.
- Child support determinations: When establishing child support, the court considers the financial resources of both parents. The Statement of Net Worth outlines the income and expenses related to the children the couple may share, which aids in a fair determination of each parent’s child support obligations.
- Providing transparency and full disclosure: The requirement to sign these documents under oath helps encourage both parties to provide accurate and complete financial information (and establishes penalties for deception and lying). This transparency is vital for fair negotiations or judicial decisions.
Finally, the exchange of Statements of Net Worth is a mandatory part of the divorce process. Failing to provide this document can result in delays and negative consequences in the proceedings.
It’s easy to make critical mistakes on important forms, like your Statement of Net Worth. Defects in your documents can lead to a lot of frustration for both parties – and unnecessary delays in your divorce. Experienced legal guidance can help you avoid errors that could be time-consuming and costly.
At The Law Firm of Poppe & Associates, PLLC, our focus is relentless advocacy for our clients. If you or someone you know is seeking a divorce, reach out to schedule a consultation at 646-665-3903 or by contacting us online.
Let Me Be Your Brave
Mia Poppe, Esq.
Managing Partner