Results-Oriented Family Law Representation

Which financial records can help people obtain a fair divorce?

On Behalf of | Oct 20, 2024 | Division of Property

People preparing for divorce sometimes put too much faith in the legal system. While the law does try to protect the rights of both spouses, the outcome of a divorce isn’t necessarily fair. Community property rules applied by judges often lack the nuance necessary in complex family law matters.

Additionally, there’s always the possibility that a spouse might engage in overt misconduct to obtain an outcome that favors them. Hiding resources, selling them for less than the fair market value and otherwise trying to manipulate property division proceedings are all somewhat common occurrences when couples divorce.

The more property the spouses have, the more incentive there may be to engage in misconduct and the easier it may be to hide inappropriate financial behavior. Obtaining copies of certain financial records can increase the likelihood of a reasonable outcome in a contentious divorce case.

Household financial records

Many of the most important financial records relate to household income and spending. Copies of credit card statements and records from bank accounts can be very important. So can records related to basic household expenses, including records of mortgage payments, invoices from home improvement projects and records of utility payments. Establishing how much maintaining their standard of living costs can be crucial throughout the divorce process. Those records can also be important when attempting to negotiate property division matters.

Tax and income records

What people earn can be just as important as what people spend. Some spouses take for granted that they should have accurate information about one another’s income. However, some people spend their entire marriage diverting a portion of their paycheck to an account held solely in their name. Others may fail to disclose bonuses or raises that they receive as a way of building up a private nest egg that they do not intend to share with their spouse.

Particularly in scenarios where the higher-earning spouse is also the person who handles the tax return and other financial matters for the family, misconceptions about the scope of the marital estate and the income earned by a spouse can potentially result in an unfair outcome to divorce proceedings. Although people generally have to provide financial records to one another during a divorce, someone willing to hide assets might also be willing to alter financial records or withhold them.

Spouses who secure certain records early in the divorce process can protect themselves from the most egregious forms of financial misconduct during property division proceedings. Obtaining copies of key records can help people ensure financial transparency and hold their spouses accountable for misconduct ranging from intentionally hiding assets to dissipating marital property.