The court requires that all parties to a divorce have equal access to financial information. It uses this level playing field to facilitate settlement between the parties.
The sharing of financial information is accomplished by several means, including court issued financial statements, and Rule 410 discovery.
All parties are required to complete a court issued financial statements. Parties earning less than $75,000 may complete the “short form” while parties earning more than $75,000 must complete the “long form”. The forms require the party to list all income, assets, debts and living expenses. A new financial statement must be filed each time the parties appear in court. As discussed below, financial statements play a crucial role in the calculation of child support.
Disclosure of Financial Records Rule 410k
All parties to a contested divorce must make a foil and fair disclosure of all their financial records within 45 days of the service of a Complaint for Divorce. This disclosure must include all tax returns, bank records, brokerage statements, and other financial records for the previous 3 years. The exact scope of the items which must be disclosed is governed by Rule 410.