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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 Indiana, 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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Indiana Requirements for Financial Disclosure Declaration

  • Indiana Financial Disclosure Requirements (Indiana Rules of Court, Trial Rule 9(H))

    Indiana requires full and complete disclosure of all assets, liabilities, income, and expenses in divorce proceedings. This includes completing the state's Financial Declaration Form as required by local court rules.

  • Mandatory Disclosure Timing (Indiana Rules of Court, Local Rules for various counties)

    Financial declarations must be exchanged within 45 days of the initial filing in dissolution proceedings, unless otherwise ordered by the court.

  • Verification Under Penalty of Perjury (Indiana Code § 35-44.1-2-1)

    Financial declarations must be verified under oath and signed under penalty of perjury, affirming that the information provided is true and complete to the best of the declarant's knowledge.

  • Continuing Duty to Update (Indiana Rules of Court, Trial Rule 26(E))

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

  • Marital Property Disclosure (Indiana Code § 31-15-7-4)

    All property acquired by either spouse during the marriage is presumed to be marital property subject to division, regardless of how title is held, and must be fully disclosed.

  • Child Support Income Disclosure (Indiana Child Support Rules and Guidelines)

    Complete disclosure of all income sources is required for accurate calculation of child support obligations according to the Indiana Child Support Guidelines.

  • Business Interest Valuation (Indiana Code § 31-15-7-5)

    Ownership interests in businesses must be disclosed with sufficient detail to determine fair market value, including financial statements, tax returns, and other relevant documentation.

  • Retirement Account Disclosure (Indiana Code § 31-15-7-4)

    All retirement accounts, pension plans, and deferred compensation must be disclosed with current valuations, regardless of when the benefits were accrued.

  • Real Property Disclosure (Indiana Code § 31-15-7-4)

    All real property interests must be disclosed with current market valuations, outstanding mortgages, and other encumbrances, regardless of how title is held.

  • Debt Disclosure Requirements (Indiana Code § 31-15-7-4)

    All debts and liabilities must be fully disclosed, including credit cards, loans, mortgages, tax liabilities, and potential contingent liabilities.

  • Discovery Sanctions (Indiana Rules of Court, Trial Rule 37)

    Failure to make required financial disclosures may result in sanctions, including monetary penalties, adverse inferences, or exclusion of evidence.

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

    Federal tax returns for the previous three years must typically be disclosed as part of the financial declaration process to verify income and asset information.

  • Qualified Domestic Relations Orders (29 U.S.C. § 1056(d)(3))

    Retirement plans subject to ERISA require proper disclosure for the preparation of QDROs to divide retirement assets without triggering early withdrawal penalties.

  • 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 if jurisdictional requirements are met.

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

    While Social Security benefits cannot be divided as property in divorce, potential benefits must be disclosed for consideration in overall property division.

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

    Financial disclosures in divorce proceedings must be coordinated with any bankruptcy filings to ensure consistency and avoid allegations of fraud in either proceeding.

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

    Foreign financial accounts and assets must be disclosed in accordance with federal reporting requirements, including FBAR and FATCA compliance.

  • Cryptocurrency and Digital Asset Disclosure (Indiana Code § 31-15-7-4; IRS Notice 2014-21)

    Digital assets including cryptocurrency holdings must be disclosed with current valuations as part of the complete financial picture.

  • Attorney Fee Disclosure (Indiana Code § 31-15-10-1)

    Parties must disclose attorney fees paid or owed as part of their financial declaration to assist the court in determining whether to award attorney fees to either party.

  • Confidentiality Requirements (Indiana Rules on Access to Court Records, Rule 5)

    Financial disclosures filed with the court are subject to confidentiality rules protecting sensitive personal information such as account numbers and social security numbers.

Frequently Asked Questions