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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 Hawaii, 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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Hawaii Requirements for Financial Disclosure Declaration

  • Hawaii Ethics Commission Financial Disclosure Requirement (Hawaii Revised Statutes § 84-17)

    Requires certain state officials, employees, and board members to file annual financial disclosure statements detailing income sources, business ownership, creditors, real property interests, and other financial interests.

  • Confidentiality of Financial Disclosure Statements (Hawaii Revised Statutes § 84-17(d))

    Specifies which financial disclosure statements are public records and which remain confidential, protecting certain filers' privacy while ensuring transparency for elected officials and executive-level appointees.

  • Penalties for False Financial Disclosure (Hawaii Revised Statutes § 84-19)

    Establishes penalties for knowingly filing false information on financial disclosure statements, including potential administrative fines and criminal charges for willful violations.

  • Mandatory Disclosure in Divorce Proceedings (Hawaii Family Court Rules, Rule 10)

    Requires full and accurate disclosure of all assets, debts, income, and expenses in divorce proceedings to ensure equitable distribution of marital property.

  • Uniform Divorce Disclosure Requirements (Hawaii Family Court Rules, Rule 10(c))

    Mandates specific financial information that must be disclosed in divorce proceedings, including income verification, tax returns, bank statements, and property valuations.

  • Continuing Duty to Disclose (Hawaii Family Court Rules, Rule 10(d))

    Establishes an ongoing obligation to update financial disclosures if material changes occur during divorce proceedings to ensure decisions are based on current information.

  • Sanctions for Non-Disclosure in Divorce (Hawaii Family Court Rules, Rule 37)

    Authorizes courts to impose sanctions, including attorney's fees and costs, for failure to disclose financial information or providing false information in divorce proceedings.

  • Property Division in Divorce (Hawaii Revised Statutes § 580-47)

    Establishes Hawaii's equitable distribution system for dividing marital property in divorce, requiring complete financial disclosure to determine fair allocation.

  • Child Support Calculations (Hawaii Revised Statutes § 576D-7)

    Requires accurate financial disclosure to determine appropriate child support payments according to Hawaii's Child Support Guidelines.

  • Spousal Support Determinations (Hawaii Revised Statutes § 580-47(a))

    Mandates financial disclosure to assess need and ability to pay when determining alimony or spousal support awards in divorce proceedings.

  • Federal Tax Return Disclosure (26 U.S.C. § 6103(l)(6))

    Requires disclosure of federal tax returns as part of financial disclosure in divorce proceedings to verify income and asset information.

  • Penalties for Perjury (18 U.S.C. § 1621)

    Establishes federal penalties for making false statements under oath, which applies to sworn financial disclosure declarations in legal proceedings.

  • Bankruptcy Disclosure Requirements (11 U.S.C. § 521)

    Requires disclosure of divorce-related financial obligations in bankruptcy proceedings, ensuring coordination between family and bankruptcy courts.

  • Military Service Member Protections (Servicemembers Civil Relief Act, 50 U.S.C. § 3901-4043)

    Provides special protections and requirements for financial disclosures involving active military service members in divorce proceedings.

  • Retirement Account Disclosure (Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1056(d)(3))

    Mandates disclosure of retirement accounts and pension benefits that may be subject to division through Qualified Domestic Relations Orders (QDROs).

  • International Financial Disclosure (31 U.S.C. § 5314; 31 C.F.R. § 1010.350)

    Requires disclosure of foreign assets and accounts, including compliance with Foreign Bank Account Report (FBAR) requirements for accounts exceeding $10,000.

  • Business Valuation Requirements (Hawaii Family Court Rules, Rule 10(e))

    Establishes standards for disclosing and valuing business interests in divorce proceedings, including requirements for professional valuations of closely-held businesses.

  • Real Property Disclosure (Hawaii Revised Statutes § 580-47(a))

    Requires detailed disclosure of real property interests, including ownership percentages, encumbrances, and current market valuations for equitable distribution.

  • Cryptocurrency and Digital Asset Disclosure (Hawaii Money Transmitters Act, Hawaii Revised Statutes § 489D)

    Mandates disclosure of digital assets including cryptocurrencies, NFTs, and other blockchain-based holdings as part of comprehensive financial disclosure.

  • Trust and Estate Disclosure (Hawaii Uniform Trust Code, Hawaii Revised Statutes § 560:7)

    Requires disclosure of beneficial interests in trusts, expected inheritances, and estate planning instruments that may affect property division in divorce.

Frequently Asked Questions