Filling out a financial affidavit during a family law case is crucial, as it provides a detailed overview of your financial situation. Here’s a step-by-step guide to help you complete it accurately, and to the best of your ability.
*Please note that the information contained within this article is not legal advice. Each case is different, and the below information may or may not apply to you. If you are seeking legal advice from Wolf & Shore Law Group, you must become a client. Please contact us for further information at info@wolfandshorelaw.com or 203.745.3151.
The financial affidavit form, which can be found on the Connecticut Judicial website, is divided into various sections to outline your income, expenses, assets, and liabilities. The financial affidavit is supposed to be a “current snapshot” of your financial picture, usually averaged over the last thirteen (13) weeks.
Section I: Income
Ensure you select the correct box for how often you are paid (Weekly, Bi-Weekly, Semimonthly, Monthly, Annually). The affidavit is based on weekly totals. If you are paid less frequently, calculate the equivalent weekly amount. You will also need to accurately record your mandatory and elective deductions as they are shown on your paystub. Please note that these deductions may not always match up with your W-2 from the prior tax year.
Section II: Expenses
List only your expenses. Do not include expenses paid the opposing party, or any anticipated future expenses. Note that this section is tricky for many people because most people pay these expenses monthly, and the weekly amount needs to be reflected. You can take the monthly expense, multiply by twelve (months in a year) and then divide by fifty-two (weeks in a year) to get the weekly amount. Some people also divide the monthly amount by 4.3 (the actual number of weeks per month).
Section III: Liabilities
In this section, you will need to specify any credit card debt, consumer debt, tax debt, healthcare debt, or other debt(s). Indicate whether the debt is solely yours or shared with another person. If the debt is sole, then select “S.” If the debt is shared with your spouse, you can check off “JTS” (joint with spouse). If the debt is shared someone other than your spouse, you can check off “JTO” (joint with other). You should also ensure that only half of the value is reflected as your debt if it is truly a shared debt. If you have any open credit cards with a zero balance, include those as well. This helps to ensure full disclosure and eliminates future questions as to the transparency of your financial affidavit.
Section IV: Assets
Similarly to the Liabilities section, make sure to select the correct ownership category. Use “S” for sole, “JTS” for joint with spouse, and “JTO” for joint with another person (and indicate who else is on the title). If you have an attorney, he or she can also insert additional information as necessary in Family Law Software in the footnotes section if anything needs to be further explained.
For real estate, the fair market value of a piece of property is usually valued through an appraisal, comparative market analysis (CMA), or websites like Zillow or Redfin. An appraisal is generally the most accurate, and least likely to be challenged. However, if you and the opposing party agree on the fair market value, then the court will usually accept the “estimate” used on Zillow, Redfin, or another comparable site. You will also need to reflect your most recent mortgage balance, which is reflected on your mortgage statement. The equity in your property will be the fair market value minus the mortgage balance.
In regard to the motor vehicle section, you need to include all vehicles in which you have an interest, such as cars, trucks, boats, etc. Make sure to include the value and any associated debt. The same categories apply here as to ownership (sole, joint with spouse, or joint with other). If you lease any vehicle, you can record the payment for such in the expense section. However, since it is only a lease, it does not belong in the Assets section at all.
For your bank accounts, list the names of each banking institution and the last four digits of account numbers in the appropriate boxes. You will need to select the ownership options here as well. The next section asks for information on “stocks, bonds, mutual funds, and bond funds.” This can be confusing for some people, but general definitions of these types of assets are as follows:
- Stocks: Investment in a single company.
- Bonds: A promise to pay a specific amount by a set date, usually with interest.
- Mutual Funds: Accounts containing a mix of stocks and/or bonds managed by a company like Fidelity or Vanguard.
- Bond Funds: Mutual funds that invest exclusively in bonds.
For any insurance policy that you have, specify whether it’s a disability or life insurance policy. Provide the last four digits of the account number and the beneficiary’s name. For life insurance, only “whole life” policies have a cash value. If you have a “term” policy, the cash value to be listed is likely zero.
Institutional Held Assets is another section where terminology can be confusing. Here are some common definitions:
- Annuities: Current cash value of an investment with an insurance company.
- Cash in Brokerage: Cash in accounts with investment firms.
- Funds in Escrow: Funds set aside for potential future obligations.
- Profit Sharing: Funds set aside for future payments.
- Money Owed to You: Debt owed to you, regardless of whether a formal agreement exists.
Section V: Child(ren) Assets
Include any accounts held for the benefit of your children, such as Uniform Gift to Minor Accounts, College Accounts, or Custodial Accounts.
Section VI: Health Insurance
Indicate which company provides your medical/dental insurance, along with the names of those insured under the policy.
These guidelines can help you to ensure that your financial affidavit is accurate and complete, which is essential to reach a fair and equitable outcome in your family law case. At Wolf & Shore Law Group, we focus on family law and can assist you in navigating these complex issues. For more personalized assistance or to discuss your specific situation, don’t hesitate to contact us at Wolf & Shore Law Group. Our experienced attorneys are here to guide you through every step of your divorce proceedings. Ever argue with a woman? Let Wolf & Shore Law Group go to work for you and help protect your future. Click here, call us at 203.745.315, or email us at info@wolfandshorelaw.com.
