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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 Montana, 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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Montana Requirements for Financial Disclosure Declaration

  • Montana Financial Disclosure Requirements (Montana Code Annotated § 40-4-252)

    Montana law requires parties in a dissolution of marriage to file a financial disclosure statement that includes all assets, liabilities, and income. This disclosure must be complete, accurate, and verified under oath.

  • Verification Under Oath (Montana Code Annotated § 40-4-253)

    Financial disclosures in Montana must be verified under oath, subjecting the declarant to penalties of perjury for false statements.

  • Mandatory Disclosure of Income (Montana Code Annotated § 40-4-252(1)(a))

    Parties must disclose all sources of income, including wages, salaries, commissions, bonuses, dividends, rental income, and any other sources of income received in the preceding year.

  • Disclosure of Real Property (Montana Code Annotated § 40-4-252(1)(b))

    All real property interests must be disclosed, including the legal description, market value, encumbrances, and equity in each property.

  • Disclosure of Personal Property (Montana Code Annotated § 40-4-252(1)(c))

    All personal property valued at over $100 must be itemized, including vehicles, household goods, jewelry, art, and collectibles, with estimated values provided.

  • Financial Account Disclosure (Montana Code Annotated § 40-4-252(1)(d))

    All financial accounts must be disclosed, including checking, savings, investment accounts, retirement accounts, with account numbers, institutions, and current balances.

  • Business Interest Disclosure (Montana Code Annotated § 40-4-252(1)(e))

    All business interests must be disclosed, including the nature of the interest, percentage of ownership, and value of the interest.

  • Debt Disclosure (Montana Code Annotated § 40-4-252(1)(f))

    All debts and liabilities must be disclosed, including mortgages, loans, credit card debts, with creditor information, account numbers, and current balances.

  • Child Support Disclosure (Montana Code Annotated § 40-4-204)

    Information relevant to child support calculations must be disclosed, including income, health insurance costs for children, childcare expenses, and extraordinary medical expenses.

  • Continuing Duty to Supplement (Montana Code Annotated § 40-4-253(3))

    Parties have a continuing duty to supplement their financial disclosures if material changes occur before final resolution of the case.

  • Sanctions for Non-Disclosure (Montana Code Annotated § 40-4-253(4))

    The court may impose sanctions for failure to disclose or for incomplete or misleading disclosures, including attorney fees, costs, and adverse findings regarding property division.

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

    Federal tax returns for the previous three years must be disclosed as part of the financial declaration, including all schedules and attachments.

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

    All retirement accounts, including 401(k)s, IRAs, pensions, and other qualified plans must be disclosed with current values and beneficiary designations in compliance with ERISA requirements.

  • Military Benefit Disclosure (10 U.S.C. § 1408 (Uniformed Services Former Spouses' Protection Act))

    Military retirement benefits, disability payments, and other military-related financial benefits must be disclosed in accordance with the Uniformed Services Former Spouses' Protection Act.

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

    Current and anticipated Social Security benefits must be disclosed, though these benefits are generally not divisible as marital property under federal law.

  • Securities Disclosure (15 U.S.C. § 78a et seq. (Securities Exchange Act))

    All securities, including stocks, bonds, mutual funds, and other investments must be disclosed with current values in compliance with SEC regulations.

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

    Any pending bankruptcy proceedings or bankruptcy discharges within the past 7 years must be disclosed, as they may affect property division and debt allocation.

  • Health Insurance Disclosure (29 U.S.C. § 1161-1169 (COBRA))

    Health insurance coverage details for spouses and children must be disclosed, including costs, in compliance with COBRA continuation coverage requirements.

  • Cryptocurrency and Digital Asset Disclosure (IRS Notice 2014-21)

    All cryptocurrency holdings and digital assets must be disclosed with current values, in compliance with IRS guidance on virtual currency reporting.

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

    Foreign financial accounts and assets must be disclosed in compliance with the Foreign Account Tax Compliance Act and Bank Secrecy Act reporting requirements.

Frequently Asked Questions