Financial Disclosure: The Foundation of a Fair Divorce
Financial disclosure in divorce is the required sharing of complete and accurate information about income, assets, debts, and expenses between spouses during divorce proceedings. This mandatory exchange ensures fair division of property and appropriate support calculations.
What you need to know about financial disclosure in divorce:
The end of a marriage often brings significant financial adjustments for both spouses. Whether your divorce is amicable or contested, complete financial transparency is essential for reaching a fair resolution. As one Florida court aptly stated: “Just because you’re getting divorced doesn’t mean that the whole world should know about your finances” – but your spouse certainly needs to.
When spouses cooperate and exchange financial information informally, the divorce process becomes faster, less expensive, and typically results in more satisfactory outcomes for both parties. However, when one spouse refuses to provide complete disclosure, the process can become lengthy, costly, and emotionally draining.
In Florida, each spouse must complete a detailed financial affidavit (using specific forms based on income level) and exchange supporting documentation within strict timeframes. This process isn’t just a formality – it’s the foundation upon which all financial aspects of your divorce will be built.
What Is Financial Disclosure in Divorce?
Financial disclosure in divorce is more than just paperwork — it’s a sacred promise of honesty between parting spouses. This formal process requires both parties to provide complete information about their financial lives, including all assets, debts, income, and expenses. Because these disclosures are made under oath, any intentional hiding or misrepresentation can lead to serious consequences.
The disclosure process typically follows four essential steps: gathering all relevant financial documents, completing required disclosure forms, exchanging these documents with your spouse, and updating the information if your financial situation changes during the divorce process.
For our Florida clients at Untying The Knot, financial disclosure follows specific guidelines. The Florida Family Law Rules of Procedure require each spouse to provide a financial affidavit and supporting documentation within 45 days of service of the petition or before any temporary relief hearing.
This transparency isn’t just a legal formality—it’s the foundation of trust that allows for fair negotiations. Even in difficult divorces, honest financial disclosure creates a level playing field where both parties can work toward a resolution that respects their shared past and separate futures.
Why Full Financial Disclosure in Divorce Matters
Financial disclosure in divorce is the cornerstone of a fair and equitable resolution. Here’s why it matters:
Ensures Fair Division of Assets and Debts
Without complete financial information from both parties, it’s impossible to divide marital property fairly. In equitable distribution states like Florida, courts aim to divide assets fairly (though not necessarily equally), which requires comprehensive knowledge of what those assets are.
When spouses cooperate and informally exchange required financial information, the divorce process is approximately 30% faster and less expensive compared to cases where formal discovery is needed. This cooperative approach not only saves money but often leads to more satisfying outcomes for both parties.
Accurate Calculation of Support
Child support and alimony calculations depend entirely on accurate income information. Support calculations are only as good as the financial data they’re based on.
When one parent understates income or overstates expenses, children may not receive the support they deserve. Similarly, a spouse entitled to alimony may receive too little, or one ordered to pay might be burdened with an excessive amount — if calculations are based on faulty information.
Fulfills Fiduciary Duties
Many people don’t realize that spouses have a fiduciary duty to each other until their divorce is finalized. This means they must act with the utmost good faith and fair dealing when it comes to financial matters.
This isn’t just legal jargon—it’s a recognition that marriage creates financial responsibilities that continue even as the relationship ends.
Prevents Future Disputes
Complete disclosure now can prevent reopening the case later. If assets are found after the divorce is finalized, the settlement might be set aside, and the concealing spouse may face penalties.
In one notable case, a court ruled that a husband who formed new companies as “standard transactions” to conceal assets had violated his disclosure duties, resulting in significant sanctions. The judge noted that these maneuvers weren’t just financial strategies—they were deliberate attempts to hide marital assets.
Avoids Costly Sanctions
Courts take disclosure obligations seriously. Penalties for failing to provide accurate and complete financial disclosures can include monetary sanctions, payment of the other party’s attorney fees, being barred from presenting evidence, having the court draw negative inferences about hidden assets, and in extreme cases, forfeiture of the undisclosed asset.
These aren’t empty threats. Judges regularly impose these penalties on spouses who attempt to game the system. The message is clear: honesty isn’t just the right thing to do; it’s also the smart financial move.
Common Forms Used for Financial Disclosure in Divorce
The specific forms required for financial disclosure in divorce vary by state, but they generally fall into these categories:
Financial Affidavits
These sworn statements detail your income, expenses, assets, and debts. In Florida, there are two versions:
- Form 12.902(b): The “short form” for individuals with gross income under $50,000
- Form 12.902(c): The “long form” for individuals with gross income of $50,000 or more
Net Worth Statements
In some states, spouses must complete a “Statement of Net Worth,” but in Florida, it’s only recommended. It’s a way for you to provide a comprehensive document that details your income information, monthly expenses, assets (including bank accounts, real estate, personal property, investments), liabilities (debts), health insurance information, and child-related expenses.
Think of this as a financial snapshot—a moment-in-time picture of your entire financial life that helps everyone understand what’s on the table for division.
Supporting Documentation
Beyond the forms themselves, you’ll typically need to provide supporting documentation to verify your financial claims. These usually include:
- Tax returns (usually for the past 3 years)
- Pay stubs
- Bank statements
- Investment account statements
- Retirement account statements
- Property deeds
- Mortgage statements
- Vehicle titles
- Loan information
- Credit card statements
- Insurance policies
- Business financial statements, if applicable.
These documents don’t lie. They tell the true story of your financial situation and help ensure that all decisions are based on reality, not wishful thinking or selective memory.
The Financial Disclosure Process in Florida
At Untying The Knot, we guide our Winter Park, FL clients through the financial disclosure process, which typically follows these steps:
1. Initial Gathering of Documents
The first step is collecting all relevant financial documents. This can be overwhelming, especially if one spouse has handled most of the finances during the marriage.
2. Completing the Financial Affidavit
Next, you’ll need to complete the appropriate financial affidavit:
- Form 12.902(b) for gross income under $50,000
- Form 12.902(c) for gross income of $50,000 or more
These forms require detailed information about:
- Income from all sources
- Monthly expenses
- Assets (both marital and non-marital)
- Liabilities (both marital and non-marital)
A helpful tip when completing these forms: If you’re paid biweekly, there are 26 pay periods each year. Multiply your biweekly amount by 26, then divide by 52 to get the weekly amount for the form.
3. Exchange of Documents
In Florida, mandatory disclosures must be exchanged within 45 days of service of the initial petition. Both parties must provide the documents to each other, but they are not filed with the court (unless specifically ordered).
4. Supplementing Disclosures
If your financial situation changes during the divorce process, you have an ongoing duty to update your disclosures. This ensures that all decisions are based on current information.
5. Addressing Non-Compliance
If your spouse refuses to provide required disclosures, several options are available:
- Document your attempts to obtain the information
- File a motion to compel disclosure
- Request sanctions from the court
- In some cases, hire a financial investigator to uncover hidden assets
In the landmark case In Re: Marriage of Feldman, the court emphasized that the duty to disclose is not just about responding to specific requests but includes an affirmative duty to provide information about all assets.
Can Financial Disclosure Be Waived?
In some limited cases, you might be able to simplify or even waive certain aspects of financial disclosure during your divorce. But before you get too excited, it’s important to understand when this is actually possible and when it’s definitely not a good idea.
When Waiver Is (and Isn’t) Appropriate
Simplifying your financial disclosure in divorce might make sense when your situation is straightforward. It could be appropriate when:
You’re truly on the same page about ending your marriage, with no contested issues. Maybe you’ve been married for a short time, have a clear understanding of your shared assets, don’t have minor children, and both of you have similar knowledge about your finances.
However, waiving detailed financial disclosure is usually a bad idea when:
- You have children under 18. Child support calculations require accurate financial information, and courts take this very seriously.
- One spouse managed most of the finances. If your partner handled the money while you focused elsewhere, you might not know what you’re entitled to without proper disclosure.
- You suspect hidden assets. Trust your instincts here. If something feels off, full disclosure is your protection.
- You own complex assets like businesses, investment portfolios, or unusual property. These situations almost always benefit from a thorough financial review.
- There’s a history of financial secrecy or control in your relationship. Financial disclosure exists partly to protect vulnerable spouses from manipulation.
At Untying The Knot, we’ve seen that even in the most amicable divorces, complete financial transparency between spouses builds trust and leads to more sustainable agreements. While the court filing requirements might be reduced in some cases, being open with each other about finances remains essential for a truly fair divorce outcome.
Contact Untying the Knot For Help With Your Financial Disclosure and Divorce
At Untying The Knot, we’ve seen how proper financial disclosure can transform the divorce experience for our Winter Park clients. The difference between an acrimonious, expensive court battle and an amicable, efficient resolution often comes down to how openly and thoroughly financial information is shared.
Many of our clients initially feel overwhelmed by the prospect of gathering and organizing their financial lives on paper. It’s completely normal to feel this way. But with the right guidance, this process becomes manageable—even empowering—as you gain clarity about your financial situation.
If you’re feeling uncertain about how to complete your Florida financial affidavit or gather the required documentation, you’re not alone. Our experienced mediators focus on guiding clients through these exact challenges. We offer personalized support to help you steer the financial disclosure process with confidence and peace of mind. Contact us today to schedule a consultation.