What Role Does Financial Disclosure Play in a Tennessee Divorce?

During divorce proceedings, the court strives to make decisions that are fair and manageable for both parties. One of the most important steps of the divorce process that helps these determinations reflect the best interests of the spouses is financial disclosure. Financial disclosure is crucial in ensuring that the outcome of a divorce is fair and equitable for both individuals. To learn more and secure skilled representation during your case, reach out to a knowledgeable Shelby County, Tennessee divorce lawyer today.

What is Financial Disclosure?

Financial disclosure is a legal requirement often involved in business transactions, divorces, and other legal matters. In a divorce, financial disclosure means that both spouses must provide complete and accurate information about their financial situations. This includes sources of income, assets, liabilities, and expenses.

Spouses can participate in financial disclosure by providing sworn affidavits, bank statements, property deeds, valuations, pay stubs, tax returns, and more. The following information is generally required to paint a clear picture of an individual’s finances.

• Wages and salaries
• Bonuses and commissions
• Investments
• Financial support
• Real estate
• Vehicles
• Bank accounts
• Retirement accounts
• Business interests
• Mortgages
• Credit card debt
• Student loans
• Personal loans
• Housing expenses
• Transportation costs
• Utilities
• Groceries
• Medical expenses
• Childcare costs

The above and more will help provide a detailed overview of each spouse’s financial situation.

What Role Does Financial Disclosure Play in a TN Divorce?

The main purpose of financial disclosure in a divorce is transparency and compliance with the law. In Tennessee, each spouse is legally required to disclose all financial information. Failing to do so or attempting to conceal financial information can lead to legal consequences.

Tennessee is an equitable distribution state, meaning that during a divorce, the court divides marital property fairly but not necessarily equally. Instead of splitting assets 50/50, the court evaluates various factors to determine what split will be equitable for the couple based on needs and abilities. To determine what is fair, the court needs a full picture of each spouse’s financial situation.

Financial disclosure is also important when considering alimony and child support. To determine whether one spouse should pay spousal or child support and how much, the court takes into account each spouse’s financial needs versus ability to pay. Total disclosure ensures that support obligations are based on accurate financial information. This helps avoid unfair arrangements.

If one party withholds or lies about financial information, the court’s decisions may not reflect a fair and equitable outcome in terms of property division and financial support orders. Financial disclosure is crucial during a divorce, so work with a skilled family lawyer to ensure that you are in compliance with the law and to protect your legal rights and options.