ZSD Law

For many people, the divorce process can be quite difficult. One of the most important aspects of divorce is the financial settlement. The fair division of assets and liabilities involves a process known as financial disclosure, also known as a Sworn Statement of Net Worth in New York.

Both partners must fully disclose their financial situations to each other and to the New York court. Understanding the requirements and best practices for financial disclosure is essential for a smoother and just outcome.

What Must Be Disclosed During a Divorce?

The most crucial aspect of financial disclosure is transparency. Being completely transparency will usually help avoid conflicts and disagreements that could arise. Both parties are obliged to provide an honest, comprehensive picture of their financial lives that includes the following:

• Assets – This includes all property owned, individually or jointly. This also includes, but is not limited to, real estate (homes, land, vacation properties), vehicles, bank accounts, investment accounts (stocks, bonds, mutual funds), retirement funds (401(k)s, IRAs, pensions), business interests, valuable personal possessions (artwork, jewelry, collectibles), and digital assets such as cryptocurrency.
• Debts – All debts must be disclosed, including mortgages, car loans, credit card debt, personal loans, student loans, and other debts.
• Income – Both parties must disclose full income information, regardless of the source. Income includes: wages, salaries, bonuses, commissions, and investment income. Pay stubs, tax returns, and bank statements are typically required to verify income.
• Expenses – A detailed summary of typical monthly expenses can help determine alimony or child support if applicable. While a summary of monthly expenses is not always required, it provides a clearer picture of the overall financial situation of both parties. This disclosure includes shared monthly, marital, and individual living expenses.
• Major financial transactions – Any significant financial transactions undertaken during the marriage must also be disclosed. This includes the sale of property, large gifts that were received, or unusual withdrawals from accounts.

Legal Requirements for Financial Disclosure

Full financial disclosures are commonly legally required in New York for divorce settlement. A financial disclosure statement typically requires an honest and complete disclosure of all financial information. The information must be comprehensive and transparent, without being intentionally misleading.

The Sworn Statement of Net Worth in New York must be notarized and submitted under oath. Both partners may be required to include supporting documentation – tax returns, bank statements, investment statements, and property deeds in order to prove accuracy. During the disclosure process, any new information regarding finances must be reported to the court as soon as possible.

How to Prepare for Financial Disclosure

To ensure a smooth divorce process in NY, ideally both divorcing partners should act quickly and prepare ahead of time.  Be sure to gather all documents and information, including:

• Pay stubs
• Bank statements
• Tax returns
• Property deeds
• Investment records
• Loan agreements

You will also be required to submit all documents that show your income, debts, and assets. It’s also a good idea to organize your finances on a spreadsheet or a written list for easy retrieval and reference.

It is typically better to share too much financial information than not enough pertinent information. Failure to provide enough disclosure could cause eventual problems. An expert divorce attorney can help you prepare the necessary paperwork and inform you of the document requirements.

Both parties must file the financial disclosure statement. In some cases, a partner may not want to disclose all of his or her assets. Hiding financial information can hinder the process of divorce and affect the division of assets. If you believe that your soon-to-be-ex-spouse is hiding assets in the disclosure process, they may be held in contempt of court. Your attorney has the power to request formal discovery to obtain access to business records and financial account statements.

Resolving Disputes Over Financial Disclosure

It is not uncommon for disputes or disagreements to arise regarding the accuracy of a financial disclosure. This is especially true if the divorce is not amicable between both parties. A divorce lawyer can assist you in negotiating a fair outcome or challenging a partner’s financial disclosure. They can also recommend mediation with a neutral third party to help reach a resolution. Keep in mind that if one spouse challenges the other’s disclosure, evidence of the error should be presented to a judge. A court order can also order forensic accounting or other actions to ensure transparency for both partners.

A committed divorce attorney can guide you through the financial disclosure process and help with transparency. They can also provide advice on how to start the divorce process in New York and should ensure a fair and equitable outcome for both parties.

If you are getting married soon, you may have thought about the possibility of getting a prenup. While they may seem unromantic and even inappropriate right before marriage, prenuptial agreements are incredibly important documents that protect one’s assets should a couple decide to divorce eventually.

Prenuptial agreements – also known as prenups or marital contracts – have been around for some time now. In fact, one of the earliest prenups was made in Ancient Egypt over 2,000 years ago. Decades ago, prenuptial agreements were primarily regarded for the rich and famous. However, times are changing. These days, prenuptial agreements are quickly becoming the new normal, particularly within Generation Z.

Below we’ll discuss this modern take on prenuptial agreements and provide valid reasons to get a prenuptial agreement. If you’re wondering, “how do I get a prenuptial agreement attorney near me?,” read on.

What’s Love Got to Do With It? 

So, what is a prenuptial agreement? A prenup is a legally binding contract between a couple who is engaged to be married that dictates what happens to each partner’s assets and debts if they get divorced. As we mentioned earlier, couples who are about to be married don’t typically want to give any thought to the possibility of splitting up in the future. However, signing a prenup is a smart decision that is widely influenced by older generations.

Many baby boomer couples ultimately got divorced, despite their conservative approach to marriage. Decades ago, prenups were not as prevalent in marriages in which assets were scarce. Consequently, many divorces became messy, with no clear division of property and assets.

Born in the late 90s and early 2000’s, Generation Z (or Gen Z) became witnesses to their grandparents’ and other older family members’ divorces. Add in evolving social norms, varying economic factors, reshaped marriage expectations and financial strategies, and prenuptials became extremely popular.

Getting Hitched Later in Life

Many people are choosing to get married later in life, and the median age of marriage is steadily increasing. In the 1950s, the average age of first marriage in the United States was 20 for women and 23 for men. In 2023, the median age for women to get married for the first time was 28, and 30 years old for men. The statistics clearly show that Gen Z couples don’t wish to get married as young as their grandparents did, or their parents for that matter.

Getting married later in life is not a negative concept by any means. In fact, many of these couples are already self-reliant with established careers and robust individual financial portfolios. As such, they want to protect what they have worked so hard for before marriage. Many do not wish to combine all of their assets when they eventually marry. The concept of 50/50 splits of assets — which used to be the norm — is not necessarily the fairest option for them.

Career First

Generally speaking, Gen Z is very career-focused, and for good reason. They crave fiscal responsibility and have been determined to achieve such responsibility in their 20s. Focused on job stability, personal growth, and financial independence, Gen Z’ers tend to accumulate businesses, investments, property, and savings at an early age.

Concisely, the financial stakes are higher since they have generally acquired success. It’s entirely understandable why they would want to protect their assets and achievements when they eventually marry. They want to avoid the messy divorces that their older family members may have faced by establishing their own wealth early on and protecting it well.

Using the Tools Available

In this digital age, Gen Z has access to prenup resources that were nonexistent decades ago. Not only can they find useful information and resources online, but they also have access to forums, message boards, and chatrooms to ask questions about prenuptials and to get advice. Additionally, Gen Z has the option to create their own personalized prenups with online templates. These straightforward templates allow couples to develop agreements that suit their individual expectations and needs.

These days, prenuptial agreements don’t carry the stigma that they once did. Celebrities and other famous people openly discuss their divorces and prenups, which seem more like common practice. This disclosure from high-profile people encourages open discussion about prenuptials and fosters close speculation of individual financial futures.

Prenuptial agreements are not just for wealthy people anymore since our way of life is simply not as traditional these days. If you’re wondering how to get a prenuptial agreement, or asking, how does a prenuptial agreement work? Or are wondering if you actually even need one, experienced prenuptial agreement lawyers can help. They will work with you to help you understand your rights and ensure a fair division of assets for both parties should the time come.

Dealing with divorce can be unpleasant for both parties, especially when dealing with money issues. One primary topic that often arises is the topic of alimony, which is also known as spousal support. In New York, the rules of alimony are established by state law, so it’s important to know these laws if you are thinking about or when going through a divorce.

This article outlines the different types of alimony, who qualifies for it, how it is calculated, how long it lasts, what factors affect its amount in New York, and how an experienced alimony attorney can help you understand your legal options.

Types of Alimony in New York

In New York, there are several types of spousal alimony that are designed to meet the various needs of a spouse during and after a divorce:

Temporary Alimony: This type of support is awarded during the divorce process and is intended to help the lower-earning spouse temporarily maintain a similar standard of living. This type of alimony is usually granted until a final settlement is reached. While the divorce is pending, a pendente lite support order in New York ensures that child support is paid. This temporary order includes the amount that is either agreed to by both parties, or is ordered by the court.

Post-Divorce Alimony (Maintenance): This type of support is awarded after the divorce is finalized and can be either permanent or for a specified duration. The court may determine that this type, based on various factors, including the length of the marriage and each spouse’s financial situation, whether the recipient can become self-supporting, and how long it may take the recipient to obtain the needed skills to do so.

Rehabilitative Maintenance: Aimed at helping a spouse re-enter the workforce, rehabilitative maintenance is typically granted for a limited time to assist the recipient in gaining the necessary skills or education to become financially independent.

Eligibility for Alimony in New York

So, what is eligibility to receive alimony based on? Eligibility for spousal maintenance in New York is not solely based on financial need – other factors are considered:

• Marriage Duration: Generally, longer marriages are more likely to result in an award of alimony.
• Financial Disparity: A significant difference in income and earning potential between the spouses can influence eligibility.
• Contributions to the Marriage: Contributions may include homemaking, child-rearing, or supporting the other spouse’s career advancements.
• Age and Health: The age and health of both spouses are also considered, particularly if one spouse is unable to support themselves due to medical conditions.

Calculating Alimony in New York

The calculation of spousal maintenance in New York is not as straightforward as simply applying a formula – it involves a combination of guidelines as well as the unique circumstances of the case. New York utilizes Maintenance Guidelines and a New York state maintenance calculator, which help in determining the presumptive amount and duration of alimony.

Presumptive Amount: The basic calculation involves taking 30% of the higher-earning spouse’s income and subtracting 20% of the lower-earning spouse’s income to arrive at a presumptive maintenance amount.

The Joyce Factor Adjustment: The court may adjust this amount based on circumstances, which include the recipient spouse’s needs, the payor spouse’s ability to pay, the standard of living during the marriage, and other relevant considerations.

Duration of Alimony in New York

The duration of spousal maintenance in New York varies significantly based on the type of alimony awarded and the circumstances of the marriage. Temporary maintenance lasts until the divorce is finalized, while post-divorce maintenance can be either for a specified term or indefinitely. Permanent alimony/maintenance is rare and generally applies to long-term marriages, often exceeding ten years.

In July 2015, New York instituted specific guidelines to help define the duration of maintenance based on the length of the marriage. For marriages of less than 15 years, the duration is a formula based on the length of the marriage. For marriages of 15 to 20 years, the court may award maintenance for up to 50% of the marriage’s duration. For marriages that lasted more than 20 years, maintenance may be awarded indefinitely or until the recipient remarries.

Factors Considered in Maintenance Determination

Various factors influence a judge’s decision when determining alimony in New York. Some of the key considerations include:

• The length of the marriage
• The age and health of both spouses
• The income and property of each spouse
• The needs of the dependent spouse
• The standard of living established during marriage
• The contributions made by each spouse to the marriage including home making and child-rearing responsibilities.
• The time and expense needed for the recipient spouse to acquire education or training for employment.

New York Alimony Attorney

Understanding spousal maintenance in New York state is often found to be a challenging task. Experienced alimony attorneys understand how to plan for life after divorce, and they can help make your case for financial support while ensuring that you are treated fairly throughout the process.