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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 Delaware, 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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Delaware Requirements for Financial Disclosure Declaration

  • Delaware Financial Disclosure Form Requirement (Delaware Family Court Civil Rule 16(c))

    Delaware Family Court requires the filing of a Rule 16(c) Financial Report form in all divorce proceedings, which must disclose all assets, debts, income, and expenses with supporting documentation.

  • Mandatory Disclosure Timeline (Delaware Family Court Civil Rule 16(c)(2))

    Financial disclosures must be exchanged within 30 days after service of the petition for divorce or within such time as the Court directs.

  • Continuing Duty to Update (Delaware Family Court Civil Rule 16(c)(4))

    Parties have a continuing duty to supplement or amend financial disclosures if material changes occur or if information previously provided becomes inaccurate or incomplete.

  • Penalties for Non-Disclosure (13 Del. C. § 1518)

    Failure to fully disclose financial information may result in sanctions, including but not limited to contempt of court, monetary penalties, or adverse findings regarding property division.

  • Property Division Statute (13 Del. C. § 1513)

    Delaware follows equitable distribution principles requiring full financial disclosure to determine fair division of marital property, considering factors such as length of marriage, age, health, sources of income, and contributions to marital estate.

  • Alimony Considerations (13 Del. C. § 1512)

    Financial disclosures must include all information relevant to alimony determinations, including income, expenses, financial needs, and standard of living established during the marriage.

  • Child Support Disclosure Requirements (Delaware Family Court Civil Rule 52(c) and 13 Del. C. § 514)

    Parents must disclose all income and expense information necessary for calculating child support according to the Delaware Child Support Formula.

  • Business Interest Valuation (13 Del. C. § 1513(b))

    Complete disclosure of business interests is required, including ownership percentages, valuation, income generated, and tax returns for businesses owned in whole or in part by either spouse.

  • Retirement Account Disclosure (13 Del. C. § 1513)

    All retirement accounts, pensions, 401(k)s, IRAs and deferred compensation plans must be fully disclosed with current valuations to enable proper division under Delaware law.

  • Real Property Disclosure (Delaware Family Court Civil Rule 16(c) and 13 Del. C. § 1513)

    All real property interests must be disclosed with information on title, mortgage, equity, and current market value, regardless of whether acquired before or during the marriage.

  • Federal Tax Return Disclosure (Delaware Family Court Civil Rule 16(c)(1))

    Federal tax returns for the previous three years must be provided as part of financial disclosure to verify income and asset information.

  • Certification Under Penalty of Perjury (18 U.S.C. § 1621 and 11 Del. C. § 1233)

    Financial disclosures must be signed under penalty of perjury, subjecting the declarant to potential federal and state criminal penalties for knowingly providing false information.

  • Bankruptcy Disclosure Requirements (11 U.S.C. § 362)

    Any pending bankruptcy proceedings must be disclosed, as they may affect the court's jurisdiction over property division and the automatic stay provisions under federal bankruptcy law.

  • Military Retirement Benefits (10 U.S.C. § 1408)

    Military retirement benefits must be disclosed and are subject to division under the Uniformed Services Former Spouses' Protection Act, which Delaware courts must apply in divorce proceedings involving military personnel.

  • Social Security Benefit Disclosure (42 U.S.C. § 407)

    While Social Security benefits are not divisible as property in divorce, they must be disclosed as they may impact alimony determinations and overall financial planning.

  • QDRO Requirements (29 U.S.C. § 1056(d)(3) and 26 U.S.C. § 414(p))

    Qualified Domestic Relations Orders (QDROs) require complete disclosure of retirement plan details to properly divide retirement assets in compliance with ERISA and the Internal Revenue Code.

  • Foreign Asset Disclosure (26 U.S.C. § 6038D and 31 U.S.C. § 5314)

    Foreign financial assets must be disclosed in accordance with the Foreign Account Tax Compliance Act (FATCA) and Bank Secrecy Act, including foreign bank accounts, investments, and real property.

  • Health Insurance Disclosure (13 Del. C. § 1512 and 42 U.S.C. § 300gg-19a)

    Information regarding health insurance coverage for spouses and children must be disclosed, including costs, as required by both Delaware law and the Affordable Care Act provisions.

  • Confidentiality of Financial Records (Delaware Family Court Administrative Directive No. 03-26)

    Financial disclosures filed with the court are subject to privacy protections under Delaware court rules, limiting public access to sensitive financial information while ensuring transparency between parties.

  • Digital Asset Disclosure (13 Del. C. § 1513 and Delaware Fiduciary Access to Digital Assets Act (12 Del. C. § 5001 et seq.))

    Digital assets including cryptocurrency holdings, online accounts with monetary value, and intellectual property rights must be disclosed as part of the comprehensive financial inventory.

Frequently Asked Questions