One of the most important papers you will sign in a divorce or separation is the Statement of Net Worth.
The Statement of Net Worth is signed under oath and includes a detailed designation of a spouse’s assets, income, liabilities and support requirements. The comparison between assets as reduced by liabilities, is your net worth.
In the Statement of Net Worth, each spouse must set forth an accurate statement of net worth as of a certain date, including a description of all assets wherever located and a statement of all liabilities, as well as detailing income from all sources. In addition, there is required disclosure of all assets which have been transferred in any manner for the three year period prior to signing of the Statement of Net Worth or for the length of the marriage, whichever is shorter.
In addition, the Statement of Net Worth describes any spousal and child support which is being paid voluntarily or pursuant to court order or pursuant to the terms of a settlement agreement, as well as a description of the expenses which are being covered by the support payments.
The Statement of Net Worth may also include a request for a specific amount of maintenance (spousal support) and child support on a weekly or monthly basis. As matrimonial and family law disputes often include counsel, accountant, appraisal and expert fee requirements, the Statement of Net Worth may contain a request for such fees (and disbursements).
In order to provide the court with an overview of the nature of the dispute, there is space provided in the Statement for a description of the financial circumstances of the parties.
The proper preparation of the Statement of Net Worth is crucial and every effort must be made to ensure that the Statement is accurate in all respects.