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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 Pennsylvania, 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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Pennsylvania Requirements for Financial Disclosure Declaration

  • Pennsylvania Ethics Act Financial Disclosure (65 Pa.C.S. § 1101-1113)

    Pennsylvania public officials and employees must file annual statements of financial interests disclosing personal financial information as required by the Public Official and Employee Ethics Act.

  • Full and Fair Disclosure Requirement (23 Pa.C.S. § 3505)

    Parties in divorce proceedings must provide full, fair, and complete disclosure of all assets, liabilities, and income to ensure equitable distribution of marital property.

  • Inventory and Appraisement (Pa.R.C.P. 1920.33)

    Parties must file an inventory and appraisement of all property owned or possessed at the time the action was commenced, including a specific listing of all marital and non-marital property.

  • Sanctions for Non-Disclosure (23 Pa.C.S. § 3505(d))

    The court may impose sanctions for failure to disclose assets or for providing incomplete or misleading financial information, including attorney's fees and costs.

  • Verification Requirement (Pa.R.C.P. 1024)

    All financial statements and disclosures must be verified by oath or affirmation, subjecting the declarant to penalties for perjury for false statements.

  • Marital Property Presumption (23 Pa.C.S. § 3501)

    All property acquired during marriage is presumed to be marital property regardless of how title is held, requiring disclosure of all assets acquired during the marriage.

  • Income Tax Return Disclosure (Pa.R.C.P. 1930.5)

    Parties must disclose federal, state, and local income tax returns for the preceding three years to verify income and asset information.

  • Child Support Financial Disclosure (Pa.R.C.P. 1910.27)

    Parents must provide comprehensive financial information for child support determinations, including income, assets, and expenses related to children.

  • Alimony Financial Requirements (23 Pa.C.S. § 3701)

    Detailed financial disclosures are required for alimony determinations, including income, expenses, assets, and liabilities of both parties.

  • Business Interest Valuation (23 Pa.C.S. § 3501(a))

    Ownership interests in businesses must be disclosed and valued, including partnerships, corporations, and sole proprietorships.

  • Retirement Account Disclosure (23 Pa.C.S. § 3501-3502)

    All retirement accounts, pensions, and deferred compensation plans must be disclosed regardless of when they were acquired or vested.

  • Real Property Disclosure (23 Pa.C.S. § 3501)

    All real property interests must be disclosed with information on title, value, encumbrances, and equity regardless of how title is held.

  • Federal Tax Information Privacy (26 U.S.C. § 6103)

    Federal tax return information disclosed during proceedings must be handled in accordance with federal privacy protections.

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

    Financial disclosures must be coordinated with any concurrent bankruptcy proceedings and comply with federal bankruptcy disclosure requirements.

  • Securities Disclosure Requirements (15 U.S.C. § 78a et seq.; 70 P.S. § 1-101 et seq.)

    Ownership of securities and investments must be disclosed in compliance with both state and federal securities regulations.

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

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

  • Digital Asset Disclosure (23 Pa.C.S. § 3501)

    Cryptocurrency, digital assets, and online accounts with financial value must be disclosed as part of the comprehensive financial inventory.

  • Ongoing Duty to Update (Pa.R.C.P. 1930.5)

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

  • Confidentiality Protections (Pa.R.C.P. 1930.1)

    Financial disclosures filed with the court are subject to confidentiality protections under Pennsylvania court rules to protect sensitive personal information.

  • Uniform Interstate Family Support Act Compliance (23 Pa.C.S. § 7101-7901)

    Financial disclosures must comply with UIFSA requirements when interstate support issues are involved in the divorce proceedings.

Frequently Asked Questions