What is a Financial Statement and Why do I Need to Complete it?

Did you just learn that you’ll need to submit a financial statement before getting divorced in Maryland? Your financial statement gives important information to the court that you should know about first. Be prepared to complete it properly and understand how it can impact your situation.

There are two main components to the financial statement: income and expenses. Income refers to any source of income you receive, such as salary/wages, investments, self-employment, previous marriage assets, or inheritances. Expenses include things like property taxes, mortgage/rent, daycare for a child, utility bills, and school tuition for children.

Maryland uses a short form and a long form financial statement. Depending on the case and jurisdiction, one or the other might be required. You can discuss the specifics for your case with your MD family lawyer.

What Your Financial Statement Tells the Court About You

The court uses this like an official document to determine your current financial situation at the time of filing. Do not hurry through it without paying attention to the details. You can get assistance from your lawyer to understand it better. 

How Much Child Support to Give You

Be truthful so that the court can order the correct level of support for your case. Child support is calculated in Maryland based on a few different factors like income for the parents and the child’s overall needs. The goal for the court is to create a similar standard of living for the child in both households.

Whether You Should Receive Spousal Support

Also known as alimony, this might be ordered temporarily while the divorce is pending or for a period after the divorce, giving one spouse time to become financially stable. The information provided in your financial statement provides some baseline details the court uses for this purpose. The courts consider the parties’ spending habits, age or health, duration of marriage, and earning ability.

Talk to a lawyer if you have questions about a financial statement. It is important that you know what you need to disclose and that you do so accurately. Since you and your spouse might be providing a financial statement at the same time, you want to make sure that yours is as accurate as possible. This is true for both spouses in a Maryland divorce since the judge will look at all aspects of the marriage to determine whether spousal support should be awarded and whether one party needs to pay the other child support.

Are you ready to talk next steps in preparing for your Maryland divorce? Set up a time to speak with Allyson Goldscher today.

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