Charlotte Divorce Lawyer Blog
Understanding Financial Disclosure in North Carolina Divorce
In North Carolina, divorce requires the equitable distribution of a couple’s marital assets. Distributing assets and debts in divorce begins with a complete review and evaluation of a couple’s finances. Both spouses must provide financial information and details as part of the divorce. A full understanding of financial disclosure is essential to ensuring an accurate assessment and distribution. A knowledgeable Charlotte divorce attorney will help guide you through the financial disclosure process.
What is Financial Disclosure?
A financial disclosure is a document that provides detailed information about a person’s assets, liabilities, and income. In North Carolina, financial disclosure is made in the form of a financial affidavit, also called an affidavit of financial standing. The disclosure requires you to detail information that the judge will use to ensure that marital assets are divided properly. It is also used for matters of alimony and child support. It is critical to be as comprehensive as possible because there are potential consequences for the intentional failure to disclose.
What is Included in Financial Disclosure?
Financial disclosure focuses on three main areas. These include assets, debts, and income. Both parties must provide detailed information, which is generally required to show data from three months prior to separation through three months after separation.
- Assets
- Debts
- Income
Assets include any property, bank accounts, real estate, vehicles, investments, jewelry, and retirement accounts. Debts include loans, mortgages, credit cards, and any other money you owe. Income includes money you receive through salary, bonuses, investments, profits from business, rental income, and any other sources of money you receive.
In addition to your assets, debts, and income, you will also need to provide information listing your expenses, including such things as rent or mortgage payments, utilities, groceries, childcare, and any other items you purchase. Also, you will need to review your past and current tax returns to provide additional context and information as needed.
Failure to Fully Disclose Finances
The failure to fully disclose finances in accordance with the law could result in sanctions. There are several sanctions that could be applied.
- Contempt of Court
- Inequitable Asset Distribution
- Set-Aside Agreement
If a party is found to have intentionally failed to disclose their finances, they could be held in contempt of court. Contempt could result in fines and other penalties, including jail time. If a spouse is found to have hidden assets, the judge could award assets to the other spouse as a penalty. In some cases, the judge may nullify or set aside agreements made using the erroneous information, requiring spouses to re-negotiate a settlement.
Help Ensure Legal Financial Disclosure
In order to facilitate a proper divorce settlement, you must complete a comprehensive financial disclosure. Sometimes, there are questions and concerns about what to include in a financial disclosure. Your attorney is able to assist you by providing answers and guidance to make certain that you properly complete your obligation. Further, if your spouse failed to disclose assets or liabilities, your lawyer will help resolve the matter and ensure accountability.
To learn more about financial disclosure in North Carolina, call us today at Arnold & Smith, PLLC, at (704) 370-2828 to schedule a consultation with our experienced legal team.
The family law practice group at Arnold & Smith, PLLC includes two Board-Certified Family Law specialists and one Child Welfare Law specialist, as well as several attorneys with many years of family law experience that are committed to providing a powerful voice to individuals facing the often-tumultuous issues in this area of law. The range of issues our family law clients may be facing include pre- and post-nuptial agreements; separation agreements; post-separation support; child support (both temporary and permanent); absolute divorce; divorce from bed and board; military divorce; equitable distribution of assets; child custody (both temporary and permanent); retirement benefits and divorce; alimony and spousal support; adoption; and emancipation. Because this area of the law is usually emotionally charged and complicated, the family law attorneys at Arnold & Smith, PLLC act with the utmost dedication to ensure that each client understands his or her options, and then act to achieve the best result possible for that client’s particular situation.
Source:
https://www.law.cornell.edu/wex/affidavit
https://www.investopedia.com/terms/a/asset.asp
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