In cases of divorce, the court is responsible for deciding how the couple's shared assets and debts should be allocated, and may also consider the need for spousal support. This necessitates the exchange of financial information between the parties involved. Despite some parties' reluctance to disclose details about their income and property, there are severe consequences for failing to comply with the regulations concerning financial disclosures during divorce proceedings.
Under Texas law, when a responding party files a response to a petition for dissolution in a divorce case, both parties must exchange specific financial information within thirty days, without needing to wait for a discovery request. Although parties can opt-out of the initial financial disclosure requirement, they must do so in writing.
This mandatory exchange of financial information includes all deeds and liens for properties they own, lease information for rented properties, and statements for retirement or pension plans, employee benefit plans, and profit-sharing plans. They must also produce insurance policies and statements for health, life, casualty, and liability insurance, along with statements for bank accounts, brokerage firms, credit unions, and savings and loan institutions. This information must be provided for the last two years or since the beginning of the marriage, whichever is less.
If child support or spousal support is in question, the parties must also exchange their tax returns for the past two years, or W-2 or 1099 forms and Schedule K-1s if they haven't filed returns. They must also provide information on all benefits, policies, and statements related to health or medical insurance coverage available for the spouse or child.
In Texas, spousal support, also known as maintenance, is only granted in specific cases, and certain conditions must be met, including a finding by the court that the party seeking support will be unable to provide for their basic needs following the divorce. The court considers various factors, including each party's financial resources and ability to support themselves, and the impact the support obligation will have on the paying spouse's financial situation.
As a result, in addition to the financial disclosures required in standard divorce cases, parties seeking spousal support must complete a Proposed Support Decision and Information form to provide a comprehensive overview of their financial situation. This form includes a list of all income sources and liabilities, such as mortgages, healthcare premiums, taxes, credit card debts, and car payments.
Obtaining a fair outcome in a divorce heavily relies on full and accurate financial disclosures. At Wilson Whitaker Rynell, our experienced lawyers understand the financial and emotional impact of ending a marriage and we will work to ensure that your dissolution is handled swiftly and fairly. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.
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