The end of a marriage can be a very trying time, emotionally and financially. Divorce involves splitting up property and often spousal maintenance and child support. These financial changes can significantly impact your and your children’s way of life. A critical part of the DIYvorce process is open and frank communication. This includes sharing financial information with each other. Beyond just working together to end your marriage, there are several reasons to share this information.

First, the financial information you have to disclose is part of the requirements for filing for divorce. Both the petitioner and the respondent must file a financial disclosure when filing the initial divorce papers. The financial disclosures provide a full picture of the assets, debts, income, and general financial resources of each person.

If you and your spouse can’t reach agreements on the issues of your divorce, and your case ends up in court, this financial information helps the court accurately divide the marital assets and debts. Minnesota is an equitable distributions tate, which means that your marital assets and debts are equitably distributed in the divorce. Note that this doesn’t mean “equal.” What division is “equitable” is decided based on a list of factors set out in Minnesota law. Providing your financial information allows the court to understand what is a martial asset that is subject to division and what is a non-marital asset that will belong solely to the spouse who owns the asset.

Another essential reason to make a financial disclosure is to ensure that child support is accurately calculated. Child support, like equitable distribution, is based on a wide variety of factors. The income of both parents is taken into account, but other expenses are also essential, such as health insurance costs for the child and child care expenses.

Finally, financial disclosures are important to make sure that spousal maintenance is also accurately formulated. The income of both parties, as well as their respective non-marital assets and resources, their future income potential, and other issues are all considered. Without accurate financial information, the court will not be able to accurately determine how much spousal maintenance one spouse requires or how much the other spouse has the ability to pay.

The same accurate information is vital for you and your spouse to come to an agreement about your assets and debts in your DIYvorce. An open, honest accounting serves everyone fairly.

If you have questions about the financial aspects of your case, including how to find an equitable distribution, contact us for help.