The division of assets is one of the most highly-contested issues in divorce proceedings. However, this can be avoided with a prenuptial agreement, so long as you and your spouse offer full financial disclosure. Read on to discover why you need to provide your spouse with full disclosure in your divorce and how one of the seasoned New York City prenuptial agreement attorneys at Zimmet Law Group, P.C. can guide you.
What is financial disclosure in a prenuptial agreement?
First of all, a prenuptial agreement is a way in which you and your future spouse can figure out how your assets will be divided in the unfortunate event of a divorce. And this cannot be done without providing a true and accurate financial disclosure of all your assets, such as the following:
- Your net income and its expected appreciation (i.e., salary, investments, etc).
- Your assets and their expected appreciation (i.e., real estate, cars, etc).
- Your debts and liabilities (i.e., credit card debt, loans, etc).
- Your expected inheritances.
Why do I need to provide my spouse with full financial disclosure?
The New York family court considers married couples to be a financial unit. So, in the event that this unit is terminated, the court must distribute assets, liabilities, and income in a way that is fair and just. And the court cannot conduct a fair distribution if they do not have an accurate picture of your and your spouse’s finances. This is one reason why you must provide your spouse with full financial disclosure, both in your prenuptial agreement and in a statement to the court. Otherwise, your prenuptial agreement will be void and the court will consider this secrecy as a red flag.
What happens if I do not provide my spouse with full financial disclosure?
Importantly, financial disclosure is a sworn declaration. Meaning, intentional misstatements are punishable by perjury.
Say, for instance, that your spouse is suspicious of your financial disclosure and decides to hire a forensic accountant for your litigation proceedings. If the forensic accountant indeed confirms that you have been making a conscious effort to hide your assets, then you may be facing the following consequences:
- You may be up against hefty fines.
- You may be up against jail time or a prison sentence.
- You may be obligated to pay for your spouse’s legal costs.
- You may be obligated to forget your hidden assets or the equivalent value of your hidden assets.
Overall, whether it is intentional or not, hiding your assets will not go over well in court. So, to ensure that you make a full financial disclosure, you must work with one of the competent New York City divorce attorneys. Give us a call today.
