The importance of financial disclosure in divorce proceedings

On Behalf of | Oct 7, 2024 | Divorce

When a couple in Maryland decides to end their marriage, they often face the challenging task of dividing assets and debts. This property division process is typically a necessary part of divorce proceedings. 

This is where financial disclosure comes into play. It’s a vital step that can ensure transparency and fairness throughout the process.

Why financial disclosure matters

Financial disclosure is more than just a legal requirement. Sharing information about finances ensures fairness. By providing a complete picture of both parties’ situations, the court can arrive at or approve the fair division of assets and debts. 

This is especially important in Maryland, which follows the principle of equitable distribution. In other words, the state seeks a fair arrangement, not necessarily a 50/50 split.

Full disclosure also prevents one spouse from hiding assets or underreporting income, which could otherwise lead to an unfair settlement. With all financial information on the table, both parties can make well-informed decisions about property division, alimony, and child support.

Importantly, transparent and complete financial disclosure usually streamlines the divorce process. Both sides can save time and reduce stress when everything is in the open. Also, couples can minimize the risk of future disagreements or legal battles over undisclosed assets.

What to include in financial disclosure

Anyone who is preparing financial disclosure for divorce proceedings must be thorough and accurate, whether handling it manually or online. Key elements include:

  • Income sources
  • Assets
  • Debts and liabilities
  • Monthly expenses
  • Insurance policies

It is also necessary to disclose any business interests, even if they are overseas.

Failure to provide accurate and complete information can have serious consequences, including penalties from the court. Being honest and thorough can ensure a fair and smooth process that gets the couple one step closer to moving forward with life.