Every divorce, like every marriage, is different – but certain things are generally true about the divorce process for almost everyone. One of these truths is that no matter who you are, divorce will likely affect both you and your spouse financially in one way or another. After all, many of the issues that a couple must confront during the process are financial in nature.
It’s impossible to divide property and bank accounts and address child support and alimony without thoroughly understanding the financial circumstances involved. That’s why North Carolina requires a financial disclosure as part of the divorce process. Let’s take a look closer at the importance, purpose, and process of financial disclosures during a divorce.
Financial Disclosures – A Look at the Basics
What is a financial disclosure? Essentially, it is a full and thorough disclosure of your overall financial circumstances, including a complete listing of your assets and debts. Before beginning the divorce process, you will want to consult with an attorney and perhaps a trained financial professional, depending on your circumstances.
In the initial stages of the divorce process, both parties are required to make and exchange financial disclosures. This is because it helps each party go into the process being fully informed of the financial circumstances involved. It prepares the parties to address the issues they will face and to budget and plan for the future. While divorce is not an inexpensive process, there are ways to make smart financial decisions. Being honest and thorough in discussing financial circumstances is an important way to do that.
Another important reason for complete and thorough financial disclosures is that if the case eventually goes to court, a judge can review the financial disclosures and make informed decisions about how to distribute the property of the parties equitably. Being thorough and complete ensures that you give the judge the whole picture so that they can make a decision that is best in accordance with the law.
What Happens If One Spouse Refuses to Disclose or Hides Assets?
Often, parties want to know what happens if one spouse fails to make a full disclosure or attempts to hide or redistribute assets to keep them out of the divorce. This is an understandable concern. Divorce can be complicated in any number of ways. Finances can be tight, and emotions can run high.
It may be tempting for one spouse to try to hide assets from the other. However, this is never advised.
Not only does the failure to make a complete and transparent disclosure deprive the other spouse of what they might rightfully be entitled to under the law, but it also puts the secretive spouse at risk as well. If a judge discovers that one spouse is hiding assets or attempting to provide misinformation of any kind deliberately, that spouse could face serious legal repercussions.
Not only does an intentional failure to disclose or intentionally hide assets affect how the judge addresses the issues in the case, but there could also be other consequences. Depending upon the severity of the situation, the spouse who is being dishonest may even face penalties like contempt of court, fines, and even jail time. Failing to disclose is not worth the risk.
Cultivating Cooperation and Communication
Another reason for being honest, thorough, and prompt in making your financial disclosures is that it encourages a spirit of cooperation and openness during your divorce. The truth about divorce is that it can be full of many difficult moments. That is simply the nature of the journey. Not all of that difficulty can be eliminated, but you can take steps to make the process go more smoothly. One of those ways is by demonstrating an attitude of cooperation and willingness to be open and communicative with your spouse.
Being honest and upfront in your financial disclosures is one way to demonstrate a willingness to cooperate. Ultimately, particularly if you are parents, the divorce process will be the end of your marriage. Still, it will be the beginning of a new journey where you remain co-parents and need to continue to cooperate and work well together. Providing the information that you need to provide and being willing to have open and honest discussions with your spouse will help facilitate a better relationship in the long run, which benefits everyone involved.
Understandably, all of this information regarding complicated financial circumstances, gathering information, and making a full disclosure may seem complex. If you feel overwhelmed, you should know that it is a normal feeling. However, gathering the information you need and making a full and fair disclosure without feeling overly stressed is possible. You need the right attorney on your side to guide you through the process and give you peace of mind. At The Law Office of Dustin McCrary, we’re here for you.
Call the Law Office of Dustin McCrary Today
Divorce is complicated, and dividing property and addressing complex financial matters is always challenging. Sometimes, it may feel overwhelming. That’s understandable. But the good news is you do not have to go through this process alone. At The Law Office of Dustin McCrary, we’ve traveled this path with our clients many times before. We know the best strategies to help you reach solutions that truly work for your family and your future. We’re ready to meet you where you are and walk with you every step of the way. If you’re ready to get started, give us a call today. We look forward to helping you soon.