Are Financial Records Scrutinized in Divorce?

Financial records are open to legal scrutiny in divorce proceedings.

If you are considering a divorce, your financial records will be open to legal scrutiny regardless of whether you live in a community property state or not. The only exception arises from non-contested prenuptial agreements.

Financial Records

Financial records serve to detail assets, cash flow and joint debts.

If your divorce proceedings take the normal course, you and your spouse must provide the family court with standard financial records for specific time periods that include tax returns, salary and other forms of compensation, statements of bank deposits, investments, credit card obligations and any other form of debt information. These records are used by the court to arrive at equitable arrangements based upon net equity and future obligations.

Considerations

Financial records are used to determine issues such as alimony and child support.

You must document any continuous health problems and special needs. Also, household bills should be retained, especially if dependents are involved. These types of financial records will be used by the court to determine whether you or your spouse must provide additional funds for any acquired obligations.

Prenuptial Agreements

Prenuptial agreements serve as insurance against uncontrolled divorce settlements.

If you and your spouse enter into a written prenuptial agreement prior to marriage, the agreement spells out the financial consequences and obligations of divorce. Financial records will only be needed if the agreement is contested or is based upon the division of property according to valuations or other instruments.

References

• Prenuptial Agreements: Your Guide to Prenuptial Agreements
• Divorce Financial Planning: Checklist for a Financial Successful Divorce
• Legal Voice: Enforcement - Legal and Property Issues

Resources

• Causes of Divorce: Gathering Financial Information Before Divorce