The process involves each party in a dissolution of marriage case providing a complete and honest accounting of all assets, debts, income, and expenses. This mandatory exchange of information ensures transparency and forms the bedrock upon which equitable financial settlements can be negotiated or ordered by the court. Examples of documents typically exchanged include bank statements, tax returns, pay stubs, investment account records, and real estate appraisals.
Comprehensive revelation of financial matters is crucial for several reasons. It enables fair negotiations, prevents hidden assets, and facilitates informed decision-making regarding property division, spousal support, and child support. Historically, a lack of mandated transparency often led to unfair outcomes, particularly disadvantaging parties with less financial awareness. Mandating full accounting aims to address such historical inequalities and ensures a more just outcome for both parties involved.
