What’s a Financial Affidavit?

[ad_1]

A financial affidavit is a legal document that outlines an individual’s assets, liabilities, gross monthly income, and living expenses. It is generally required for all family law cases involving divorce, child support, or alimony. In these cases, both parties involved are normally required to complete one. The information that each person includes is then calculated, using a specific formula that determines his monetary obligations to the other party, if necessary. Every person who completes a financial affidavit for filing in court is required to provide truthful answers.

In cases involving child support, a financial affidavit will show the disposable income of both the primary resident and non-affidavit parents. Based on the information provided in these two documents, a guideline worksheet is compiled, usually by an attorney. Both parents’ incomes are calculated to find the total amount of funds available to care for the child or children. Each parent’s percentage of financial responsibility is determined by the individual’s income, future earning potential, certain living expenses, and the child’s needs.

Aside from child support, when a couple files for divorce, there are usually assets and liabilities that need to be addressed legally. A family court judge will decide or approve an equitable division of property, such as the family home, cars, boats, or other valuables. There may also be some bills, such as auto payments, credit card debt, and a mortgage, that require an equal split between the parties. A financial affidavit will show the court a full account of the family’s situation to make sure the sharing of valuables and responsibilities is fair and based on each person’s resources.

Even if the couple agrees on how the assets and liabilities will be split, a judge generally must require the sworn documents to be completed. This is to ensure that the agreement between the parties is realistic and appropriate to the circumstances. It can also be used to determine an alimony payment order from a husband to a wife, or vice versa.

A financial affidavit is completed under oath. It requires a signature from the person completing it and, normally, a notary’s seal to authenticate that signature. Proof of income, such as income tax returns and pay stubs, is often needed to cooperate with affidavit related to disposable income. Knowingly making a false statement about a financial affidavit is a crime and can lead to serious consequences in many judicial jurisdictions.

[ad_2]