Financial Affidavits in Tennessee Divorce
Shelby County TN Divorce Alert: Don’t Mess Around with Your Financial Affidavit!
Once the Shelby County, Tennessee, divorce complaint is filed, your personal financial life may be exposed for the court, the lawyers, and the other party to see. Pursuant to T.C.A. § 36-4-116, the judge or chancellor has discretion to require that the parties submit a personal financial affidavit that details their current:
● income and expenses; and
● interests in real property and personal property (and the scope thereof).
Typically, the more complex the couples’ assets and debts are, the more complicated the statement will necessarily be. Therefore, when you meet with a divorce attorney, be prepared to provide sufficient information to accurately portray your family’s income, deductions, assets, and liabilities. Best guesses generally will not do; you’ll need facts and figures with supporting documentation to properly complete the financial affidavit and get the job done right.
Failure to Disclose Financial Information and Hidden Assets
Some individuals resist the idea of disclosing indepth financial information to the other party and are less than forthcoming about their circumstances. (Consider the gambler who uncontrollably wastes marital assets; or the husband who secretly supports a mistress.) As a result, a party’s financial disclosure statement could be challenged and may not pass judicial muster.
That’s precisely the point Jeff Landers made in his guest article covering 6 Ways to Avoid Trouble Completing a Divorce Financial Affidavit, which applies to Tennessee divorces, too. In a nutshell, both parties should gather the documents and files necessary to provide sufficient detail to paint an accurate financial picture.
The statement must be sworn to under oath. Consequently, attempts to conceal property and financial obligations, or to intentionally withhold pertinent information, could get you in some very serious trouble. Trouble for which a price may be extracted in the divorce along with criminal sanctions for intentionally committing perjury. (Do you suspect that your spouse might attempt to hide assets from you in the divorce? Take a look at Hidden Income and Hidden Assets in Tennessee Divorces.)
What Is the Financial Affidavit For?
Both spouses need to know what they own, what they owe, and what they need to support themselves and their children so that family resources can be allocated appropriately and equitably between them in the divorce. Depending upon the circumstances, your financial affidavit may be used as a basis for dividing marital assets and liabilities, for calculating child support, and for awarding alimony.
Sample Financial Affidavit Checklist
Here is a sampling of what should be included in the well-prepared financial affidavit:
Income from all sources:
● salary, wages, bonuses, commissions, tips
● retirement, pensions, annuities
● business income
● Social Security benefits, SSI disability benefits
● workers’ compensation
● unemployment compensation
● alimony received
● investment interest and dividends
● rents, profits, and royalties
● trust income
● other income
Deductions from income:
● court-ordered child support
● court-ordered alimony
● FICA, taxes, Medicare payments
● union dues
● mandatory retirement payments
● health insurance premiums
● other expenses
Assets:
● cash
● collectibles and fine art
● stocks, bonds, notes
● marital home, vacation home, and other interests in real estate
● motor vehicles, RVs, travel trailers, boats
● retirement plans (IRA, 401(k), pension)
● other assets
Liabilities:
● home mortgages
● home equity line of credit (HELOC)
● credit cards
● automobile loans
● other liabilities
Consider the Forensic Lifestyle Analysis
When the information disclosed in the other party’s financial affidavit appears lacking, is imprecise, or seems questionable, consider obtaining a lifestyle analysis from a forensic accountant. To learn about the benefits of a lifestyle analysis in the Tennessee divorce, take a look at Lifestyle Analysis | Alimony in Tennessee Divorce & Family Law
Divorce Attorney in Memphis TN
To discuss the requisite financial disclosures in your divorce, contact Memphis divorce attorney Miles Mason, Sr., JD, CPA. To schedule your confidential consultation, call us today at (901) 683-1850. Founder of the Miles Mason Family Law Group, PLC, Miles practices family law exclusively. You may also wish to check out The Tennessee Divorce Client’s Handbook: What Every Divorcing Spouse Needs to Know, available on Amazon and Kindle.
