What the Heck is a Statement of Net Worth?!
A Statement of Net Worth is used in every contested divorce case to help outline current or expected finances. Each party involved in the divorce will need to file a Statement of Net Worth with the courts, and the documents will be used to determine maintenance, both before and after the Judgment of Divorce is ordered.
The act of filing a Statement of Net Worth should not be overwhelmingly daunting. It can be a rather stress free process if you have access to the required documents and information. Generally, your attorney will draft the statement for you, and you will review it for final approval. Your lawyer will request basic information from you, including:
- Bank statements, investment portfolios, or other relevant information regarding assets
- Information proving any debt
- Tax returns from the previous three years
- Household or vehicle expenses (utility costs, mortgage, insurance, etc.)
- Lifestyle expenses (dining out, recreation, health insurance, etc.)
- Costs relating to children (child care or tuition, extracurricular activities, insurance, etc.)
The items listed will vary on a case by case basis, but these are the typical pieces of information your attorney will need while preparing your Statement of Net Worth. A blank statement of net worth form, provided by the New York Unified Court System, can be found here. As you can see, the courts also require you to provide information regarding your health status, as well as that of your children and spouse. A simple reply of “good”, “excellent”, or “bad” will suffice. While this may seem out of place, the courts will use the answer provided to help them determine the amount of support you or your children receive. For instance, a stay at home parent who is in mediocre health due to an illness like cancer, diabetes, or has a disability may be entitled to more money in maintenance than if they were healthy. However, this will vary depending on individual situations, so it is best to discuss any concerns thoroughly with your attorney.
By filing an accurate Statement of Net Worth with the courts, you are putting your financial background and worth on the record. As stated previously, this is required by the State of New York in all contested divorce proceedings. If you’re in the beginning stages of a contested divorce, contact the family law firm of Brian D. Perskin & Associates. The experienced attorneys will discuss your pending case, as well as the best course of action to take. Brian and his knowledgeable staff are well versed in matrimonial and family law, and are experts in the field. Call (646) 760-1428 or (718) 875-7584 to schedule your free consultation. Next day appointments are often available.