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. 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.
Example of a Financial Affidavit in a Divorce
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.
Financial Affidavits Can Vary By State
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.
Income Levels and Financial Affidavits
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.
Sharing Information With Your Spouse
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.
When Do You File a Financial Affidavit?
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.
How Do You File a Financial Affidavit?
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.
Calculating Your Income and Expenses
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
Documents Required To File a Financial Affidavit
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:
Recent pay stubs and Form W-2s Income tax returns Bank and credit card statements Documents pertaining to any other assets or debts you may have
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.
