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Financial Disclosure Declaration: What Married Couples Need to Know

Learn about the Financial Disclosure Declaration, its importance in divorce proceedings, and how it affects married couples with significant assets, business owners, and parents with minor children.

Introduction

A Financial Disclosure Declaration is a critical legal document used during divorce or legal separation proceedings that requires both spouses to provide a complete and honest inventory of their financial situation. This document serves as a foundation for fair property division, support calculations, and financial arrangements involving children. For long-term married couples with significant assets, business owners, and parents with minor children, understanding this document is essential to protect your interests and ensure equitable outcomes during what can be a challenging transition period.

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Key Things to Know

  1. 1

    Financial Disclosure Declarations are legally binding documents signed under penalty of perjury, making honesty and thoroughness essential.

  2. 2

    For long-term marriages, these declarations help ensure fair division of assets accumulated over many years, including retirement accounts that may represent significant portions of marital wealth.

  3. 3

    Business owners must provide comprehensive information about their business interests, which may require professional valuation services.

  4. 4

    Parents must detail all child-related expenses to establish appropriate support arrangements that maintain children's standard of living.

  5. 5

    The declaration serves as the foundation for negotiations and court decisions, making it one of the most important documents in your divorce process.

  6. 6

    Failure to disclose assets can result in severe penalties, including potential loss of those assets and damage to your credibility in all aspects of your case.

  7. 7

    Consider working with professionals (attorneys, financial advisors, accountants) to ensure your declaration is complete and accurately represents your financial situation.

  8. 8

    Begin gathering financial documentation early, as compiling a comprehensive picture of your finances can be time-consuming, especially for complex estates.

Key decisions before you file

Before you file a Financial Disclosure Declaration in Connecticut, a few decisions shape the document: which option to choose and what each one means. The Financial Disclosure Declaration guide walks through them.

Open the Financial Disclosure Declaration guide

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Connecticut Requirements for Financial Disclosure Declaration

  • Connecticut Financial Disclosure Requirements (Connecticut Practice Book § 25-30)

    Connecticut requires both parties in a divorce or legal separation to complete and exchange sworn financial affidavits disclosing all income, expenses, assets, and liabilities. These must be updated if circumstances change during proceedings.

  • Mandatory Financial Disclosure Form (Connecticut Practice Book § 25-30(a))

    Parties must use the court-approved financial affidavit forms (short form for gross annual income under $75,000; long form for income over $75,000) and must be signed under oath.

  • Automatic Orders Upon Filing (Connecticut General Statutes § 46b-81; Practice Book § 25-5)

    Upon filing for divorce, automatic orders take effect prohibiting parties from transferring, encumbering, concealing, or disposing of property without consent or court order, except in the ordinary course of business or for necessities of life.

  • Continuing Duty to Disclose (Connecticut Practice Book § 25-30(c))

    Parties have a continuing duty to disclose material changes to financial information throughout the divorce proceedings, including changes in income, assets, or liabilities.

  • Penalties for Non-Disclosure (Connecticut General Statutes § 46b-87; § 53a-156)

    Failure to disclose or fraudulent disclosure of financial information may result in sanctions, reopening of judgments, contempt of court, and potential criminal penalties for perjury.

  • Equitable Distribution Standard (Connecticut General Statutes § 46b-81)

    Connecticut follows equitable distribution principles requiring fair (not necessarily equal) division of marital property based on factors including length of marriage, causes of dissolution, age, health, occupation, sources of income, and contribution to acquisition of assets.

  • Business Valuation Requirements (Connecticut General Statutes § 46b-81; Practice Book § 25-30)

    Ownership interests in businesses must be disclosed and may require professional valuation, including details of business assets, liabilities, income, and ownership structure.

  • Real Property Disclosure (Connecticut Practice Book § 25-30)

    All real property interests must be disclosed with information on ownership form, purchase date, purchase price, current market value, mortgage information, and equity calculation.

  • Retirement Account Disclosure (Connecticut Practice Book § 25-30; Connecticut General Statutes § 46b-81)

    All retirement accounts, pensions, 401(k)s, IRAs and deferred compensation plans must be disclosed with current values, vesting status, and loan information.

  • Child Support Guidelines Compliance (Connecticut General Statutes § 46b-215a to 46b-215e)

    Financial disclosures must include all information necessary to calculate child support according to Connecticut Child Support Guidelines, including income from all sources.

  • Alimony Considerations (Connecticut General Statutes § 46b-82)

    Financial disclosures must include information relevant to alimony determinations, including income, expenses, needs, and earning capacity of both parties.

  • Tax Return Disclosure (Connecticut Practice Book § 25-32)

    Parties may be required to provide copies of federal and state income tax returns for the last three years as part of financial disclosure.

  • Federal Tax Implications Disclosure (Internal Revenue Code § 1041, § 71, § 215)

    Financial disclosures should address potential federal tax implications of property transfers, alimony, and dependency exemptions for children.

  • QDRO Requirements (Employee Retirement Income Security Act (ERISA) 29 U.S.C. § 1056(d)(3); Internal Revenue Code § 414(p))

    Qualified Domestic Relations Orders (QDROs) must comply with federal ERISA requirements when dividing qualified retirement plans, and relevant information must be disclosed.

  • Military Pension Division (Uniformed Services Former Spouses' Protection Act, 10 U.S.C. § 1408)

    Military retirement benefits subject to division must be disclosed and comply with the Uniformed Services Former Spouses' Protection Act for proper division.

  • Bankruptcy Disclosure (11 U.S.C. § 541; Connecticut Practice Book § 25-30)

    Any pending bankruptcy proceedings or intentions to file bankruptcy must be disclosed, as they may affect property division and debt allocation.

  • Securities Disclosure (Connecticut Practice Book § 25-30)

    All securities, stocks, bonds, mutual funds, and investment accounts must be disclosed with current values, acquisition dates, and ownership information.

  • Debt Disclosure Requirements (Connecticut Practice Book § 25-30)

    All debts and liabilities must be disclosed, including mortgages, loans, credit cards, tax liabilities, and any contingent liabilities or guarantees.

  • Insurance Policy Disclosure (Connecticut Practice Book § 25-30)

    All insurance policies, including life, health, property, and disability insurance, must be disclosed with information on coverage, beneficiaries, and cash surrender values.

  • Digital Asset Disclosure (Connecticut General Statutes § 46b-81; Practice Book § 25-30)

    Digital assets including cryptocurrency holdings, online accounts with monetary value, and intellectual property rights must be disclosed.

Frequently Asked Questions