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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 South Carolina, 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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South Carolina Requirements for Financial Disclosure Declaration

  • South Carolina Ethics Reform Act (S.C. Code Ann. § 8-13-1110 et seq.)

    Requires public officials and employees to file annual statements of economic interests disclosing financial information, including income sources, property holdings, and business interests.

  • South Carolina Family Court Financial Declaration Requirement (S.C. Family Court Rule 20)

    Mandates that parties in family court proceedings involving financial issues must complete and file a financial declaration under oath, disclosing income, expenses, assets, and liabilities.

  • South Carolina Equitable Distribution Law (S.C. Code Ann. § 20-3-620)

    Governs the division of marital property in divorce proceedings, requiring full disclosure of all assets and liabilities to ensure equitable distribution.

  • South Carolina Financial Declaration Penalties (S.C. Code Ann. § 20-7-1300)

    Establishes penalties for knowingly providing false information on financial declarations, which may include contempt of court and sanctions.

  • South Carolina Alimony Considerations (S.C. Code Ann. § 20-3-130)

    Requires disclosure of financial information relevant to determining alimony, including income, expenses, and financial needs of both parties.

  • South Carolina Child Support Guidelines (S.C. Code Ann. § 63-17-470)

    Mandates financial disclosure to calculate child support obligations based on both parents' income and the needs of the children.

  • South Carolina Business Valuation Disclosure (S.C. Code Ann. § 20-3-630)

    Requires disclosure of business interests, ownership percentages, and valuation information for businesses owned by either spouse.

  • South Carolina Retirement and Pension Disclosure (S.C. Code Ann. § 20-3-620(B))

    Mandates disclosure of retirement accounts, pension plans, and other deferred compensation arrangements that may be subject to division in divorce.

  • South Carolina Marital Debt Disclosure (S.C. Code Ann. § 20-3-620)

    Requires full disclosure of all debts and liabilities, including those incurred during the marriage that may be subject to division.

  • South Carolina Discovery Rules (S.C. Rules of Civil Procedure, Rule 26-37)

    Establishes procedures for obtaining additional financial information through formal discovery processes when financial declarations are incomplete or contested.

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

    Requires disclosure of federal tax returns as part of financial declaration to verify income and tax-related financial information.

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

    Mandates disclosure of bankruptcy filings or proceedings that may affect the financial status of either party.

  • Federal Employee Retirement Income Security Act (ERISA) (29 U.S.C. § 1001 et seq.)

    Governs the division of certain retirement benefits in divorce proceedings, requiring specific disclosure of qualifying retirement accounts.

  • Qualified Domestic Relations Orders (QDROs) (26 U.S.C. § 414(p))

    Requires disclosure of retirement plans subject to division by QDROs, which allow for the division of retirement benefits without early withdrawal penalties.

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

    Mandates disclosure of securities, stocks, bonds, and investment accounts that may be subject to division in divorce proceedings.

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

    Requires specific disclosure of military retirement benefits that may be divisible in divorce under the Uniformed Services Former Spouses' Protection Act.

  • Federal Student Loan Disclosure (20 U.S.C. § 1087e)

    Requires disclosure of federal student loan obligations that may affect the financial status of either party in divorce proceedings.

  • Social Security Benefits Disclosure (42 U.S.C. § 402)

    Requires disclosure of Social Security benefits and eligibility that may impact financial planning in divorce settlements.

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

    Mandates disclosure of foreign financial accounts and assets under the Foreign Account Tax Compliance Act (FATCA) and Bank Secrecy Act.

  • Servicemembers Civil Relief Act Considerations (50 U.S.C. § 3901 et seq.)

    Provides special protections for active-duty military personnel in civil proceedings, including divorce, requiring disclosure of military status.

Frequently Asked Questions