If you have ever dealt with a family lawyer or estate planning lawyer, you have probably heard the term financial affidavit mentioned at least once. There are different types of financial affidavits and different states use different names for the document. To better understand what a financial affidavit is, you must understand what it is, when it is used, how it is used, and the purpose of a it.
Though legally binding, a financial affidavit is not a contract. A financial affidavit is a written statement that shows your income, expenses, assets, and liabilities. A financial affidavit is a complete picture of your financial situation at the time that you (the affiant), signs the document. Financial affidavits are presented to courts under oath, which means that the affiant is swearing to the truthfulness of the statements in the affidavit.
There are different types of financial affidavits, and the affidavits are sometimes referred to as a different name. Following are a few types of affidavits.
Different names that a financial affidavit is referred to are as follows:
Here is an article to help understand financial affidavits.
The purpose of a financial affidavit is to provide the court with an explanation of the affiant’s financial circumstances. Without a clear picture of a person’s financial situation, it would be hard for a court to make determinations and issue court orders relating to property distribution. A well-prepared financial statement will help bolster a party’s credibility with the courts.
Financial affidavits are used in different situations, such as domicile related cases, divorce cases, business related cases, and estate planning related cases (for example, probate proceedings, trust administration, and guardianship or conservatorship cases), just to name a few. In each of these situations, courts need to know the financial circumstances of the parties involved.
Following are brief explanations of the previous affidavits mentioned:
Meet some lawyers on our platformAn Affidavit of Domicile is a short legal document that helps to establish a person’s place of residence following his or her death. The affidavit of domicile is primarily used in probate court. Probate court is the court that helps distribute the decedent’s property to his or her heirs.
An Affidavit of Heirship is a sworn statement that heirs can use in some states to establish property ownership when the original owner dies intestate. Affidavits of Heirship is generally used when the decedent had a small estate and only left real or personal property, but this can vary depending on the specifics of the case.
An Affidavit of Marriage is a document that is submitted to a court, University or other institution in order to verify that a person is married. Verification of marital status might be needed to get health insurance, get a passport, visa, or other government related documents.
Financial statements are written records that convey the business activity and financial performance of a company. Financial statements include the following:
If one of the parties owns a business or has a financial interest in a business, financial statements can be requested by a court in a divorce case and other cases.
Here is an article that explores the purpose of financial affidavits.
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A financial affidavit is required when the courts need to determine the financial situation of a party involved in a case. Example, if you are a party in a divorce, child support, or spousal support related case, a Domestic Relations Financial Affidavit needs to be completed. The financial affidavit is supposed to state the true financial picture of the affiant.
Your lawyer will inform you when a financial affidavit is required. In the following circumstances, a financial affidavit is required.
Financial information shown on the affidavit shows whether property is marital (subject to division by the spouses), or separate, which belongs to the spouse who brought the property into the marriage. A financial affidavit must also include information about inheritances, gifts, or large sums of money received by the affiant.
Here is an article related to when financial affidavits are required.
Relating to a divorce or child support case, a financial affidavit must include the following information:
There are times when a financial affidavit requires that you attach your W2 form paystubs, and/or income tax return. As this is the case, you do not want to minimize your expenses or inflate your income. You also should sign the affidavit in the presence of a Notary Public.
Here is an article related to the information that must be included in an affidavit.
As each case is different, prior to preparing your financial affidavit, your lawyer should speak with you about your financial circumstances and a strategy behind preparing a financial affidavit in your case. You should carefully read the instructions, even if you are planning to have the lawyer, or someone else complete the affidavit for you.
If you are completing the financial affidavit, you should start by gathering the following documents:
After you have gathered the necessary documents, the next step is to calculate your monthly expenses. Your calculations should be as precise as possible. Once the calculations have been completed, provide the calculations and relevant documents to your lawyer. Your lawyer will then arrange the information in a format that is approved by the court in which your case is pending.
This article relates to how to complete a financial affidavit.
Do you need to create a financial affidavit and don’t know where to look? Most family or estate planning lawyers can help you prepare this document.
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Attorney Kegler has been licensed to practice law in the State of North Carolina since 1998. Over the years, she has worked in firms that focused on small business financing, initial startup formation, to starting several businesses of her own with bootstrap financing to venture capital funding. As a Certified Dream Manager, she couples the skills of listening to understand the big picture to get to solutions that not only fit today's needs but also the long term needs of her entrepreneurial clients.
Karl D. Shehu, has a multidisciplinary practice encompassing small business law, estate and legacy planning, real estate law, and litigation. Attorney Shehu has assisted families, physicians, professionals, and people of faith provide for their loved ones by crafting individualized estate and legacy plans. Protecting families and safeguarding families is his passion. Attorney Shehu routinely represents lenders, buyers, sellers, and businesses in real estate transactions, researching and resolving title defects, escrowing funds, and drafting lending documents. To date, Attorney Shehu has closed a real estate deal in every town in Connecticut. As a litigator, Attorney Shehu has proven willing to engage in contentious court battles to obtain results for his clients. While practicing at DLA Piper, LLP, in Boston, Attorney Shehu represented the world’s largest pharmaceutical companies in multidistrict litigations filed throughout the United States. He has been a passionate advocate for immigrants and the seriously injured, frequently advising against lowball settlement offers. He is willing to try every case to verdict, and he meticulously prepares every case for trial. Attorney Shehu began his legal career as a consumer lawyer, utilizing fee-shifting statutes to force unscrupulous businesses to pay the legal fees of aggrieved consumers. For example, in Access Therapies v. Mendoza, 1:13-cv-01317 (S.D. Ind. 2014), Attorney Shehu utilized unique interpretations of the Trafficking Victims Protection Act, Truth-in-Lending Act, and Racketeer Influenced and Corrupt Organizations Act (RICO) to obtain a favorable result for his immigrant client. Attorney Shehu is a Waterbury, Connecticut native. He attended Our Lady of Mount Carmel grammar school, The Loomis Chaffee School, and Chase Collegiate School before earning degrees from Boston College, the University of Oxford’s Said Business School in England, and Pepperdine University School of Law. At Oxford, Karl was voted president of his class. Outside of his law practice, Attorney Shehu has worked to improve the world around him by participating in numerous charitable endeavors. He is a former candidate for the Connecticut Senate and a parishioner of St. Patrick Parish and Oratory in Waterbury. In addition, Attorney Shehu has written extensively on the Twenty-fifth Amendment and law firm retention by multinational firms.
