During the divorce process, both parties must fill out a Financial Disclosure Statement form, often referred to as an FDS. The FDS is a standard state form. If you retain counsel, your attorney will often provide you with a copy during the divorce process. It’s important to provide accurate information, without skipping over any details. Intentionally hiding assets results in severe sanctions.
This includes any/all documents related to:
This can feel overwhelming if there is a lot of information to enter. Work carefully through the form, one section at a time. If you begin to feel overwhelmed, set a goal to complete one section per sitting, and plan out the nights you will work on your FDS to finish it in a timely manner without dragging out the stress of the task indefinitely.
At the very least, you will typically be asked to provide at least two years of federal and state income tax returns (including schedules and 1099’s). Based on how you receive income, you may need to additionally gather one or more of the below forms:
| Form of Income | Documentation |
|---|---|
| W-2 Employee | W-2’s for the past 2 years; Last 6 paycheck stubs from each income source |
| Self-Employment (receive regular paychecks) | Last 6 paycheck stubs for each income source |
| Self-Employment (do not receive regular paychecks) | Quarterly Profit and Loss statements; two years of tax returns for the business |
| Pension or Retirement | Most recent statement for each income source |
| Unemployment | Last 12 weeks of unemployment payment history |
| Social Security or Disability | Annual Benefit Verification letter |
| Public Assistance | Benefits Verification letter |
| Child Support Received from Any Former Marriage | 12 weeks of payment history for payments received; Copy of your most recent Child Support Order |
| Dividends / Interest | Most recent statement for each income source |
| Rent Received | Copy of the lease for each property |
You will commonly need to gather documentation reflecting the current value of the following assets:
| Type of Asset | Documentation |
|---|---|
| Bank Accounts / Retirement Accounts / Securities / Investment Accounts / Life Insurance | Most recent statement for each asset |
| Real Estate (Mortgage, Second Mortgage, Home Equity Lines of Credit, Liens) | Copy of mortgage, deed, or note, that includes the legal description of the real estate; Recent 3rd Party Appraisal |
| Automobiles | Edmunds and/or Kelley Blue Book value (using the private party value) |
To document current debt, gather a copy of the most recent statement for each debt (for example, your most recent credit card statement, mortgage statement, insurance policies, etc.). Also include bills that are overdue and in collection.
Debts to consider include:
| Type of Debt | Documentation |
|---|---|
| Loan agreements | Loan Statements, Including the terms and conditions of the loan, repayment terms, interest rates and any collateral involved. |
| Credit cards | Credit Card Statements, including outstanding balances, minimum payments and transaction history. |
| Mortgages | Mortgage Documents, including the mortgage agreement, loan terms and any refinancing documents. |
| Car Loans | Car Loan Statements, including statements showing the remaining balance, monthly payments and loan terms. |
| Student Loans | Student Loan Statements, including information on the remaining balance, monthly payments and repayment terms (for both federal and private loans). |
| Personal Loans | Personal Loan Agreements, including borrowed money from family, friends or others. Provide loan agreements or promissory notes outlining the terms. |
| Medical Bills | All outstanding bills should be accounted for and included. |
| Other Debt | Any additional documentation related to outstanding debts, such as personal lines of credit, payday loans or other forms of borrowing. |
Errors happen, but it is important to carefully review the information on this form for accuracy. If the court believes you were intentionally trying to hide assets or income, you can be sanctioned by the court.
Sanctions for intentionally trying to hide assets worth $500 or more during financial disclosures can include ordering the entirety of the hidden asset to be handed over to the other party—as opposed to including the asset in the marital estate to be divided between the two parties, as happens when the asset is properly documented.
Divergent Family Law has experienced attorneys standing by to advise you on your FDS. Contact us today for legal advice.
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