When a couple gets divorced, both parties must disclose their financial information. This allows the Court to equally divide assets as well as award financial support such as alimony. Due to this, understanding the importance of financial disclosure in divorce proceedings is vital to an ideal outcome during the case. Below, we explain what you need to know about financial disclosure to best protect your rights in court.
What Is Financial Disclosure?
During a divorce, financial disclosure means providing information about key areas such as assets, existing debt, and current income. Both parties must have readily available financial statements to prove ownership of properties, investments, and income. These documents prove sole or joint ownership over specific assets to increase the chance of fair outcomes for both parties.
Ensuring Accurate Division of Assets
Financial disclosure in divorce proceedings is important because it ensures proper division of all assets. Colorado is an equitable distribution state, so divorcing couples can decide on a division of assets before involving the Courts. However, if a judge intervenes, accurate documents proving current financial history make the process smoother.
Generally, couples will divide all marital property, since they acquired it during the marriage. That said, specific financial gains such as inheritance usually still count as separate property. However, you should still provide the Court with documentation proving the inheritance.
Providing as much information about your financial situation as possible allows the judge to make the optimal decision for your case. Colorado is not a 50-50 property distribution state. Courts make their judgments on distribution based on the evidence they have; hiding information is never advisable. If caught falsifying information, the guilty party could lose assets and face fines or even jail time.
Essential Documents To Have
As you prepare for your divorce proceeding, ensure you have key financial documents, including:
- Pay stubs from your job
- Retirement or pension plan
- Tax returns
- Bank statements
- Investments
- Personal and joint debts
Gathering the exact documents during a divorce can feel overwhelming. To ensure protection of your rights, it’s best to work with an assets division attorney for guidance throughout the divorce process. Jones Law Firm, PC, has a team of experienced attorneys who can walk you through your divorce proceeding. We’ll ensure your financial information is properly disclosed as we advocate for you in court. Contact our firm today to schedule a free consultation and get the guidance you need throughout your case.
