The Importance of A Truthful Financial Statement

Our court system in Massachusetts (as in nearly all states) espouses a philosophy of open and honest discovery so as to avoid the surprises that have led to “trial by ambush” in the past. The days of the Perry Mason surprise witness, although perhaps entertaining to watch, are a figment of the past.

Each party to a divorce is required to sign and file a financial statement which discloses under the penalties of perjury, all of that party’s assets and liabilities. While in many marriages, the parties have had an intermingling of funds, it is often the case that the parties’ income, assets and to some degree liabilities, begin to get separated upon the parties’ separation. Consequently,  some suspicion and distrust can result and this can certainly lead to increased attorneys fees if this suspicion is founded by one spouse or the other hiding  assets or placing them in a third party’s name. This suspicion also fuels a feeling of anger that a spouse may be potentially cheated out of what, in their estimation, is rightfully due.

At each court appearance involving issues relating to child support, spousal support and/or the distribution of property, a current financial statement will have to be prepared and filed. Over time, many financial statements may be filed depending on the length of the divorce but inconsistency in their preparation leads to doubts by the presiding judge on the case and, ultimately, may affect one party’s entire credibility at trial. Don’t under-estimate the importance of filing a truthful financial statement and provide financial disclosures openly and expeditiously as it will engender good will and the belief that the negotiations will be founded on honesty.

If you need guidance, call rauseolaw for a free consultation by an experienced Middlesex and Essex County divorce lawyer.