During the divorce process, spouses are required to disclose all information about their financial situations. Critically, this can involve gathering a considerable amount of paperwork. Since this can be time-consuming, it’s best to begin preparing financial documents for divorce as early as possible. These documents will not only be needed for litigation purposes, but also to negotiate the issues of property division, spousal support, and child support outside the courtroom.

Key Takeaways

• Since divorce involves a considerable amount of financial paperwork which can be time-consuming to gather, it’s best to begin preparing your financial documents for divorce as early as possible.
• There is a broad scope of required financial documentation in divorce, including state and federal tax returns for the last three years, bank and investment account statements, pay stubs, deeds, property titles, credit card statements, and insurance policies.
• To manage the volume of paperwork, it’s best to organize the documents by type, and if storing them digitally, ensure they are secured using encrypted storage and private passwords.
• You should regularly update your financial information during the divorce process, including all monthly expenses, payments, assets, and income. This information can be vital to calculate child and spousal support, as well as help you plan your post-divorce budget.

Why It’s Important to Gather Your Financial Documents Early in Your Case

Marriage is an economic relationship as much as it is an emotional one. Accordingly, much of the divorce process has to do with resolving financial matters, including dividing property, allocating debts, and determining the issues of spousal support and child support. Before these issues can be settled, each spouse must disclose all information about their financial circumstances.

By gathering your financial documents for divorce early, your attorney can also make an assessment regarding your financial situation and advise you regarding your rights. A thorough review of these documents allows them to develop a strategy in your case to help ensure the best financial outcome is achieved. You can also move more efficiently through the discovery process by having the documents readily available, which can potentially save you both time and attorney’s fees.

What Financial Documents Do You Need for Divorce?

One of the most critical aspects of divorce is ensuring each spouse understands the other’s financial situation. You will need to compile all relevant paperwork for your attorney to review so they can understand what assets and liabilities are on the table to ensure a fair settlement is reached. As full financial disclosure in divorce is required by law, you will also need to exchange these documents with your spouse during the discovery process.

The following are some of the financial documents for divorce you will need to gather:

• State and federal tax returns for the last three years
• Business tax filings
• Bank statements
• Investment and retirement account statements
• Pay stubs and income statements
• Deeds and property titles
• Mortgage documents
• Business financials
• Vehicle titles
• Brokerage accounts
• Credit card statements
• Student loan documents
• Insurance policies

Failure to fully disclose all assets and liabilities in a divorce can result in significant legal consequences. In addition to imposing monetary fines and holding a party in contempt of court, a judge may award a larger portion of the assets to the innocent spouse and order the wrongdoing spouse to pay their attorney’s fees.

How to Organize Your Financial Documents for Divorce

While collecting the financial documents for divorce can often be overwhelming due to the volume of paperwork, it’s crucial to ensure the documents are organized. Create a system where the documents are divided by type, whether they are stored physically or electronically. If you will be storing the documents digitally, be sure they are secure. Use encrypted storage and ensure any passwords remain private to protect the sensitive information.

You should also update your financial information regularly during the course of the proceedings to ensure your financial picture remains accurate. Keep track of all monthly expenses, payments, assets, and income. Separate the information by category, such as childcare expenses, household expenses, healthcare costs, and personal expenses. Not only is this information necessary to calculate spousal or child support, but it can help you plan your post-divorce budget.

Understand the Automatic Orders in Divorce

One of the most important things to understand about finances during divorce is that automatic orders go into effect that restrict spouses from engaging in certain financial activities. Critically, under New York law, once divorce papers have been filed, neither party may sell, transfer, or hide marital assets, such as a vehicle, house, stocks, or bank accounts. Understanding these restrictions can help you better plan your budget while the divorce proceedings are ongoing.

In addition, the automatic orders also require both spouses to maintain any existing healthcare and auto insurance coverage. Policies cannot be canceled and beneficiaries can not be changed unless the court allows such modifications to be made during the proceedings.

Contact an Experienced New York Divorce Attorney

If you have questions about the financial documents for divorce that are necessary in your case, an experienced attorney can best advise you. At Duke Law Firm, P.C., we are dedicated to providing our clients with the guidance they need as they divide their marital assets and protecting their rights as they navigate the divorce process. To learn more about our legal services and discuss how we can help you, please call us at 585-302-2850 (Lakeville) or 585-252-2051 (Rochester), or contact us online to schedule a consultation.