Essential Guide to the Statement of Net Worth Divorce NY

Understanding the Statement of Net Worth in Divorce Proceedings

What is the Statement of Net Worth in Divorce?

A Statement of Net Worth is a sworn statement that gives an accurate picture of your financial situation during a divorce. The court has to make many important decisions that affect you, your former partner, and the rest of your family financially, so an accurate account of your finances helps them make fair decisions. In NY divorce cases, it is a critical document and requires a detailed accounting of your income, expenses, assets, and debts at the time of separation. The statement is then used to calculate your net worth, which is the total value of your assets minus liabilities. False information, inaccuracies, or omissions in the Statement can result in serious consequences, including civil and criminal penalties.

‍

Statement of Net Worth Divorce NY: What is included?

The Statement of Net Worth is a detailed picture of your financial situation. Therefore, you will be prompted to disclose the following:

• Family Data: Names, birth dates, family composition, occupations, employment.
• Expenses: Mortgages, rent, equity loans, utilities, phones, internet, food, clothing, and more.
• Income: Earnings, investment income, social security benefits, disability, veteran’s benefits.
• Assets: Cash, savings accounts, checking accounts, bank accounts, stocks, bonds, real estate, retirement accounts, and more. Make sure to list all forms of assets, including account numbers and joint ownership with a spouse, so you have a complete picture of your financial situation.
• Debts: Outstanding debts, including credit cards, mortgages, and loans.

‍

How to Calculate Net Worth

To calculate your Statement of Net Worth in a New York divorce, you should:

1. Subtract your total liabilities from your total assets in order to reach your individual net worth number.
2. Use bank statements, credit card statements, and other documentation to verify the accuracy of the net worth.
3. Consult a divorce attorney or financial advisor to make sure you are calculating correctly. An experienced lawyer can also help you determine the right amount of support to ask for or receive in your divorce.

‍

Filling out the Statement of Net Worth

When filling out your Statement of Net Worth, start gathering financial information that paints a clear picture of your economic situation as early as possible. Be precise when documenting all financial statements by dividing yearly totals by 12 and weekly totals by 4.3. This will make it easier for the court and your divorce attorney to understand your expenses, and thus make a deliberate decision in your divorce. Make sure to include every expense, even if paid by someone else or not currently being paid. To fill out the income section, use a recent pay stub and W-2 from the most recent tax year. Understanding and documenting your spending habits will give you insight into your budgeting and financial behaviors, which will impact divorce negotiations.

‍

Certification and Filing Requirements

Once your Statement of Net Worth is complete and accurate, you must sign and swear that the information is true. It must be reviewed thoroughly and double-checked for errors before you and your attorney file it with the court. If you find errors after you file it, you should promptly amend the statement.

‍

Conclusion

Overall, the integrity of your Statement of Net Worth will be vital during a divorce proceeding, as it provides a clear and comprehensive snapshot of your and your partner's financial standings to the court. They ensure that all assets and liabilities are properly identified and dealt with, which promotes transparency during your case and helps ease the process for all. By accurately accounting for and documenting income, expenses, and debts, this will aid in avoiding possible future disputes. With this, Statements of Net Worth can reveal patterns or hidden assets that may be particularly impactful regarding conversations of alimony, child support, and more.

Here at Hannon De Palma, LLC, we believe in focusing on what truly matters -- protecting your rights, using our expertise to create successful outcomes for the entire family, and focusing on creating a future where everyone can thrive. Practicing across Westchester County, Manhattan, Long Island, and Boston, the Hannon De Palma team has decades of experience representing clients in custody and divorce cases. 

Call our office at (914) 444-1900 or fill out a simple, free online consultation form to begin your next chapter.

‍