As a divorce attorney/ mediator for over 35 years, I have seen many clients look scared when I hand them a Statement of Net Worth. The good news is there is nothing to fear, and I’m here to help!
I find that most clients hate filling out their financial statements. These are the forms required of clients in matrimonial cases in New York to disclose their income and assets.
Filling them out can be time-consuming and tedious. But, they must be done. Your financial future depends on it. This information sets the stage for what will be included in your financial settlement.
Sometimes clients fill them out to record their marital lifestyle. Sometimes they are used to represent what an individual will need going forward with or without children in the home.
The good news is a Statement of Net Worth will acquaint you with what you have been spending.
Many clients also use this tool to get a handle on their budget and spending habits which may not have been on their radar.
Here is a small sampling of what is needed in the Statement of Net Worth:
1. Family Information
Names, birth dates, family composition, occupations, employment.
2. Expenses
Mortgages, rent, equity loans, utilities, phones, internet, food, clothing, dry cleaning, life insurance, health insurance, dental, medical, pharmaceutical, automobiles, education, gardening, vacations & domestic help, just to name a few.
3. Income
Earnings, investment income, social security benefits, disability, veteran’s benefits, etc.
4. Assets
Cash, savings accounts, checking accounts, stocks, bonds, and real estate, followed by retirement accounts like pensions, 401 (k)s, profit sharing plans and deferred compensation plans, cars and boats, and jewelry, art, antiques and household furnishings.
5. Debts
Student loans, equity loans, credit card debts.
Once you have completed your Statement of Net Worth, you have a picture of how much it took to maintain your marriage financially; it will be a blueprint of the expenses to be met once divorced, and it will disclose what will be considered in equitable distribution and for negotiation.
Ask your lawyer/mediator what is needed at each stage of your case. Sometimes it is helpful to include only necessities. Sometimes your lawyer may advise you to include as many luxury items as you can (such as vacations, massages, and household help). Is the document being used in Court or in negotiations between lawyers? Remember you are swearing to the truth of your statements under oath.
Don’t just take a stab in the dark at your Statement of Net Worth. Make sure to have a thorough discussion with your lawyer/mediator about how to fill out your financial forms so that it will best represent the facts in your case which can help you get the best deal!
For those of you considering divorce, I am offering a free consultation. I will be happy to answer any and all of your questions!
For over 35 years as a divorce attorney and mediator, I have been guiding spouses successfully to find the right path to divorce. If you need help with your divorce, or your statement of net worth, call me today!
All our FREE 1hour consultations arevery informative and conveniently conducted virtually to reduce risk!
I look forward to speaking with you.
Stay healthy and safe!!
Warm regards,
Lois
Call New York Divorce Attorney Lois Brenner Now to schedule your FREE consultation!
212.734.1551