What To Know About Financial Affidavits

Financial affidavits play a significant role in a variety of legal proceedings, such as divorce, child custody, and financial support. It’s a legal document that provides an in-depth look at an individual’s income, expenses, assets, and liabilities.

Why are financial affidavits so crucial, what needs to be included, and how can you ensure yours is accurate?

Let’s get started.

When Do You Need a Financial Affidavit?

Divorce proceedings are one of the most common scenarios requiring a financial affidavit. California’s community property laws require marital assets to be divided equally while each party retains their separate assets they had at the start of the marriage.

Still, dividing the assets and determining each person’s financial responsibilities can be challenging. With a financial affidavit, the court is better able to assess each person’s financial position and make decisions regarding the division of assets and debts and spousal support. 

The court can also ensure the child’s financial needs are met with support payments.

In addition to family law cases, financial affidavits may be required for large loans and mortgages so the lender can determine your ability to repay the loan. They can also be used to settle other legal matters, such as probate or the dissolution of a business partnership.

What Information Is Included in a Financial Affidavit?

California’s Income and Expense Declaration is very detailed and broken down into sections:

Income

In addition to your employer, education, and tax filing information, you must disclose all forms of income you receive, including wages (minus deductions), commissions, rental income, government assistance, and investments. You must also provide two months’ worth of paystubs and proof of other income.

Assets

This portion lists what you own, such as bank accounts, real estate, retirement investments, vehicles, and other assets you could easily sell minus the amount still owed.

Expenses

The form will ask you to list the people who live with you and if they are contributing financially to the household expenses. This section also wants details about your current financial obligations, like housing, utilities, and food. It also wants you to list your discretionary spending on entertainment and vacations.

Liabilities

Other financial obligations, such as car loans, student loans, and credit card payments, also need to be included so the court can have a comprehensive view of your financial situation. 

The Importance of Transparency and Accuracy

Your financial affidavit is a legal document. Therefore, it’s vital that you present a truthful picture of your financial health. Avoid guessing at your numbers. Double-check and verify the information you entered and have your supporting documents ready.

If the court finds any discrepancies or omissions, it could harm your credibility, delay court proceedings, and result in legal consequences. Transparent and honest records pave the way for a fair resolution.

Let LPEP Law Help

Considering how crucial the financial affidavit is to your divorce proceedings, you don’t want to leave anything to chance. Our lawyers at Lonich Patton Ehrlich Policastri can work with you to ensure your affidavit is complete and gives an accurate, in-depth picture of your finances and supporting documentation. Doing it on your own can be stressful. By letting us handle the details, you can know that our experienced professionals are working to protect your interests.

Contact us at (408) 553-0801 for a free consultation. 

 

Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.