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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 North Dakota, 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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North Dakota Requirements for Financial Disclosure Declaration

  • North Dakota Disclosure Requirements (North Dakota Century Code § 14-05-24)

    North Dakota requires full and complete disclosure of all assets, liabilities, income, and expenses in divorce proceedings. Parties must provide comprehensive financial information including bank statements, tax returns, and property valuations.

  • Property Division Principles (North Dakota Century Code § 14-05-24(1))

    North Dakota follows equitable distribution principles, requiring fair (though not necessarily equal) division of marital property. Financial disclosures must identify all property acquired during marriage to enable proper classification and valuation.

  • Retirement Account Disclosure (North Dakota Century Code § 14-05-24)

    All retirement accounts, pensions, 401(k)s, IRAs and other retirement benefits must be fully disclosed with current valuations, regardless of when they were acquired, as they may be subject to division under North Dakota law.

  • Business Interest Disclosure (North Dakota Century Code § 14-05-24)

    Complete disclosure of all business interests, ownership stakes, valuations, and business financial records is required. North Dakota courts consider business interests as property subject to equitable distribution.

  • Child Support Guidelines Compliance (North Dakota Century Code § 14-09-09.7)

    Financial disclosures must include all income information necessary to calculate child support according to North Dakota's child support guidelines, including salary, bonuses, commissions, and other income sources.

  • Spousal Support Considerations (North Dakota Century Code § 14-05-24.1)

    Financial information relevant to spousal support determinations must be disclosed, including income history, earning capacity, education, and financial needs of both parties.

  • Real Property Disclosure (North Dakota Century Code § 14-05-24)

    All real property interests must be disclosed with current market valuations, mortgage information, and equity calculations. This includes primary residences, vacation homes, rental properties, and land.

  • Debt Disclosure Requirements (North Dakota Century Code § 14-05-24)

    Full disclosure of all debts and liabilities, including mortgages, loans, credit cards, tax liabilities, and other obligations, is required to ensure equitable distribution of both assets and liabilities.

  • Financial Affidavit Requirements (North Dakota Rules of Court Practice and Procedure)

    North Dakota courts typically require sworn financial affidavits detailing income, expenses, assets, and liabilities. False statements on these affidavits may constitute perjury.

  • Continuing Duty to Disclose (North Dakota Rules of Civil Procedure Rule 26)

    Parties have a continuing obligation to update financial disclosures if material changes occur during the pendency of the divorce proceedings.

  • Penalties for Non-Disclosure (North Dakota Century Code § 14-05-24)

    Failure to disclose assets or providing false information may result in sanctions, including contempt of court, attorney fee awards, or unequal property division as remedy for the non-disclosure.

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

    Federal tax returns for at least the past three years must be disclosed to verify income and identify assets, deductions, and potential hidden income sources.

  • ERISA Compliance (29 U.S.C. § 1056(d)(3))

    Disclosure of retirement accounts must comply with the Employee Retirement Income Security Act (ERISA) requirements, particularly for qualified domestic relations orders (QDROs) that may be necessary to divide certain retirement benefits.

  • Military Benefit Disclosure (10 U.S.C. § 1408)

    Military retirement benefits, if applicable, must be disclosed in accordance with the Uniformed Services Former Spouses' Protection Act, which governs the division of military retirement pay in divorce.

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

    While Social Security benefits cannot be divided as property in divorce, disclosure of expected benefits is relevant for financial planning and may impact other aspects of the settlement.

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

    All securities, stocks, bonds, options, and investment accounts must be disclosed with current valuations in compliance with both state and federal securities regulations.

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

    Foreign assets, accounts, and income must be disclosed in compliance with the Foreign Account Tax Compliance Act (FATCA) and Bank Secrecy Act requirements.

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

    If bankruptcy proceedings are concurrent with divorce, financial disclosures must satisfy both state divorce requirements and federal bankruptcy disclosure obligations.

  • Digital Asset Disclosure (North Dakota Century Code § 14-05-24)

    Cryptocurrency, digital assets, online accounts with monetary value, and intellectual property must be disclosed and valued according to current North Dakota case law treating these as property subject to division.

  • Trust and Estate Disclosure (North Dakota Century Code § 14-05-24)

    All trust interests, expected inheritances (if sufficiently certain), and estate planning documents that may affect property rights must be disclosed to provide a complete financial picture.

Frequently Asked Questions