During a divorce in Tennessee, a plethora of decisions must be made before the final decree can be issued. Couples and courts must determine how property and debts are to be divided, which individual will be responsible for child custody or support, and whether one spouse will be paid alimony and the amount. Financial affidavits are important documents that can help this process but details of these statements can be complex. Enlist the help of a Memphis, Tennessee property division lawyer for more information about financial affidavits and skilled representation during your divorce case.
What is a Financial Affidavit?
A financial affidavit is a sworn statement detailing every aspect of your financial situation. These documents summarize your income, monthly expenses, annual expenses, assets, debts, and more.
It is a legal document that upon being signed swears under oath that the information provided is true and that no assets or debts have been concealed. Affidavits require full disclosure and transparency.
What Documents Do I Need?
When preparing your financial affidavit, you must provide ample evidence demonstrating that the financial statements you have made are accurate and complete. Documentation required may include the following.
- Income: Pay stubs, W-2s, 1099s, profit and loss statements, and deductions
- Expenses: Bank statements, credit card statements, household bills, transportation-related receipts, insurance documentation, childcare costs, and any evidence of regularly occurring expenses
- Assets: Bank account statements, investment statements, retirement accounts, appraisals, property valuations, vesting schedules, etc.
- Debts: Student loans, car loans, credit card account balances, tax debts, and more
What is the Purpose of Financial Affidavits in a Divorce Case?
Financial affidavits are crucial documents in any situation involving financial matters, especially during a divorce. When two people decide to end their marriage many of the decisions that need to be made and issues that must be addressed involve splitting assets and finances. Courts use these affidavits to make fair decisions about financial matters relevant to the divorce case.
One of the main reasons financial affidavits are required during a divorce is during property distribution. Tennessee is an equitable distribution state, meaning that all marital assets must be divided between the parties in a way that is fair and equitable based on the facts of each individual’s personal circumstances. Financial affidavits allow the court to get a clear understanding of each individual’s earning capacity, needs, ability to pay for certain things, and more. This ensures that during asset division the court’s decision will be based on relevant information and that each spouse will receive a fair amount of the shared property.
It also allows the court to make an informed decision regarding support obligations. When determining how much child support a noncustodial parent should pay or how much alimony a lower-earning spouse deserves, each individual’s affidavit can be referenced to ensure the amount is enough to be fair to the recipient but not place an undue burden on the paying spouse.
To learn more and obtain representation during your case, work with a skilled attorney at Rice Law.
