What Are You Required To Disclose In A High Net Worth Divorce In Florida (Financial Disclosures)
Divorce is hard. For high income and high asset couples, ending a marriage can be especially challenging. Not only is there more at stake, but high net worth couples frequently own some complex property or assets. In Florida, marital property is divided equitably in divorce. Each party will be granted their “fair” share of the assets.
To help determine what constitutes a fair and equitable distribution, Florida law requires parties to a divorce make accurate and comprehensive financial disclosures. This is done through a financial affidavit—and failing to comply could lead to sanctions. Here, our Parkland divorce attorneys provide a guide to financial disclosure and high net worth divorce in Florida.
High Income Couples Must Use the Long-Form Financial Affidavit
Under Florida’s procedural rules (Rule 12.285), parties to a divorce have a legal responsibility to make timely, detailed, and accurate financial disclosures to their partner. There are two types of financial disclosure forms. All high income couples are required to use Florida’s so-called “long-form” financial affidavit for mandatory disclosure. The simplified (short-form) version is only any option for a person who makes less than $50,000 per year.
An Overview of the Financial Information Parties Must Provide
In Florida, a wide array of material financial information must be disclosed during the divorce process. Florida’s family law policy is clear: Each spouse in a divorce has a right to know the full context of their partner’s financial situation. In a high asset divorce case in South Florida, you have a general legal responsibility to disclose the following:
- Bank statements;
- Investment account statements;
- Retirement account statements;
- Recent pay stubs;
- Recent tax returns;
- Relevant business records; and
- Debts and other financial liabilities.
What Happens If Proper Financial Disclosures are Not Made in Florida?
The consequences for failure to make a proper mandatory financial disclosure will depend on the specific factors of the case. As an example, Florida courts may give a person a “pass” for an inadvertent and relatively immaterial mistake. On the other hand, an international attempt to conceal assets could warrant harsh sanctions.
Notably, Florida courts have the authority to award an unequal distribution of assets in order to remedy a failure to make proper financial disclosures. The spouse that failed to follow their disclosure obligations could receive a smaller share of the marital property. If you have any questions about failure to disclose, our South Florida high asset divorce attorneys can help.
Contact Our Parkland, FL High Net Worth Divorce Lawyers Today
At Williams & Varsegi, LLC, our Florida family law attorneys have deep experience representing high asset clients in divorce. If you have any specific concerns about the required financial disclosures, we are available to help. Contact us today to arrange a completely confidential appointment with an experienced divorce lawyer. Our law handles all types of complex high net worth divorce cases throughout Southeastern Florida, including in Parkland, Boca Raton, and Coral Springs.