Financial Affidavit for Divorce: What You Need to Know Before Filing
Divorces in Florida, much like everywhere else, often involve a significant amount of paperwork. One of the key documents that features is the financial affidavit. In short, this is a sworn disclosure of each spouse’s financial position—outlining their income, assets, expenses, and debts. This is a mandatory part of divorce filings in Florida, although it may be waived in some cases.
While this may seem simple enough, it’s important not to underestimate the importance of a financial affidavit. Preparing it correctly and from an informed perspective influences the fairness of the court’s decisions regarding asset division and support matters. So, let’s take a closer look at the role this paperwork plays.
Florida’s Legal Requirement of Financial Affidavits
In most circumstances, Rule 12.285 of the Florida Rules of Procedure mandates that a financial affidavit—as well as other supporting evidence—must be provided:
“….in any proceeding for an initial or supplemental request for permanent financial relief, including, but not limited to, a request for child support, alimony, equitable distribution of assets or debts, or attorneys’ fees, suit money, or costs.”
Importantly, the rule requires that this document is provided within 45 days of the divorce petition being served. Both parties involved in the divorce must provide this documentation, regardless of what their income level is. Failing to file an affidavit on time or doing so inaccurately can not only affect the outcome of the proceedings, but can also lead to penalties.
Types of Financial Affidavits
In the context of Florida divorce filing, there are two main forms of financial affidavit that you’re likely to come across. Which is relevant to your case will depend on the income level involved.
| Affidavit Type | Form Designation | Income Level | Features |
|---|---|---|---|
| Short Form | Form 12.902(b) | Gross annual income less than $50,000 | Involves a relatively simple declaration of income, debts, and expenses |
| Long Form | Form 12.902(c) | Gross annual income more than $50,000 | Significantly more detailed than the short form, requiring comprehensive listing of all assets and liabilities |
Completing the correct form is a basic, yet vital requirement. Any errors here can cause delays or complications.
Information Required
The level of detail required in a financial affidavit will depend on whether a short form or long form version is being completed. Nevertheless, it’s worth getting to know the types of information that typically need to be included. The aim is to provide the court with a full and accurate picture of each party’s financial situation.
The disclosures usually fall into the following categories:
- Income – This includes details of salary, bonuses, income from property rent, income from businesses, pensions received, and any other sources of regular revenue.
- Monthly expenses – This includes housing costs (usually rent), utilities, food, transportation, medical expenses, childcare costs, and personal spending.
- Assets – This includes ownership of any real estate, bank accounts, retirement or pension accounts, holdings related to trusts, investments, and interests in any businesses.
- Liabilities – This includes current credit card balances, remaining mortgage balance, student loans, personal loans, lawsuit payments, and any other forms of debt.
Why is Accuracy and Full Disclosure Important?
Certainly, ensuring the accuracy and completeness of affidavits is the ethical thing to do. However, it’s vital to understand that there are other reasons to make certain everything here is in order.
Firstly, it helps to ensure that the outcome of the divorce proceedings are fair for everyone involved. Florida is an equitable distribution state, and these documents will inform division of assets and liabilities accordingly. They also help to ensure that application of alimony and child support is applied effectively.
Beyond this, there’s also a legal obligation for accuracy and completeness. Financial affidavits aren’t just administrative formalities; they are sworn statements signed under oath. Genuine mistakes may cause delays, but if a party is found to have made false or incomplete declarations intentionally, the court can impose sanctions or even pursue perjury charges. Not to mention that it may affect that party’s credibility with the court, potentially damaging their case.
If you’re not sure whether certain information should be included in your affidavit, it’s best to over-provide rather than risk an incomplete declaration. Your attorney can provide clear guidance, though.
Common Challenges in Preparing a Financial Affidavit
Dealing with the administrative aspects of a divorce can be challenging, particularly at such an emotionally taxing time. Collaborating with an experienced Florida family law attorney will help you effectively navigate the difficult components, but getting an understanding of some common challenges helps you to prepare effectively.
Some of the typical issues people face include:
- Correct valuation – Declaring all assets involves accurately calculating the value of these. When assets are complex, such as businesses or retirement accounts, working with experienced financial professionals can be useful here.
- Accounting for all expenses – It’s common for people to overlook some of their outgoings when making declarations. Being thorough here and reviewing prior bank statements is essential to a fair outcome.
- Unintentional underreporting – Particularly for high-net-worth individuals or those with a diverse portfolio, unintentionally underreporting assets can be a challenge. Utilizing an independent third party to audit assets can be useful to avoid complications and disputes.
Documents to Support a Complete Affidavit
Alongside completing the relevant forms relating to the affidavit, supporting documents are often either recommended or required. Some of the common items you may need to gather include:
- Tax documents – Federal and state income tax returns, IRS forms—such as W-2 and 1099, and gift tax returns. These are usually required for the prior 3 years.
- Pay stubs – Any pay stubs or similar proof of income received. In most cases, only the most recent 3 months of these documents need to be provided.
- Bank statements – Statements related to all bank accounts and credit card accounts. In most cases, the most recent 12 months of these documents will suffice.
- Mortgage or loan documents – Applications and statements for all mortgages and loans related to the most recent 12 months.
- Retirement account or investment statements – All statements, including brokerage statements, related to investments and savings related to the most recent 12 months.
The documentation required will usually depend on your specific circumstances. An experienced Florida family law attorney will be able to provide in-depth guidance here.
Wrapping Up
The financial affidavit—and its supporting documents—is among the most important documents in Florida divorces. Ensuring this is complete and accurate affects the outcome of multiple aspects of the divorce and impacts your financial position as you move forward.
Collaborating with an experienced professional is key to ensuring this aspect of your divorce is accurate and presented in your best interests. Our experienced attorneys have spent years helping men like you in Florida to effectively represent their circumstances and navigate their case to meet their unique needs.
