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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 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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South Dakota Requirements for Financial Disclosure Declaration

  • South Dakota Financial Disclosure Requirements (SDCL § 25-4-33)

    Parties to a divorce or separation must provide full and complete disclosure of all assets, debts, income, and expenses as required by South Dakota law. This includes real property, personal property, financial accounts, retirement accounts, business interests, and all sources of income.

  • Sworn Financial Statement Requirement (SDCL § 25-4-33.1)

    Parties must submit a sworn financial statement under oath, attesting to the completeness and accuracy of all financial information provided. False statements may constitute perjury under South Dakota law.

  • Child Support Financial Disclosure (SDCL § 25-7-6.2)

    When child support is at issue, parties must disclose all income information necessary for the calculation of child support according to the South Dakota Child Support Guidelines, including but not limited to tax returns, pay stubs, and documentation of other income sources.

  • Continuing Duty to Disclose (SDCL § 25-4-33.2)

    Parties have a continuing duty to supplement or amend their financial disclosures if they discover information that was omitted or if there are material changes to their financial circumstances during the pendency of the proceedings.

  • Valuation of Assets (SDCL § 25-4-44)

    All assets must be valued as of a date certain, typically the date of filing or the date of separation, as determined by the court. The valuation method must be disclosed and consistent with South Dakota law.

  • Disclosure of Retirement and Pension Benefits (SDCL § 25-4-43)

    Complete disclosure of all retirement accounts, pension plans, and deferred compensation is required, including account statements, summary plan descriptions, and information necessary for the preparation of qualified domestic relations orders (QDROs).

  • Business Interest Disclosure (SDCL § 25-4-45.1)

    Parties with ownership interests in businesses must provide detailed information about the business, including financial statements, tax returns, and other documents necessary to determine the value of the business interest.

  • Disclosure of Debts and Liabilities (SDCL § 25-4-45.2)

    All debts and liabilities must be disclosed, including mortgages, loans, credit card debts, tax liabilities, and any other obligations, along with documentation of the current balances and payment terms.

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

    Parties must provide copies of federal income tax returns for the previous three years, including all schedules and attachments, to ensure accurate income reporting and tax liability assessment.

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

    Disclosure of retirement plans governed by ERISA must comply with federal requirements for the division of these assets, including information necessary for the preparation of qualified domestic relations orders (QDROs).

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

    For military service members, disclosure of military retirement benefits must comply with the Uniformed Services Former Spouses' Protection Act, which governs the division of military retirement pay in divorce proceedings.

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

    While Social Security benefits cannot be divided as marital property, disclosure of potential Social Security benefits is required for a complete financial picture, particularly for long-term marriages where spousal benefits may be available.

  • Securities and Investment Disclosure (SDCL § 25-4-46)

    All securities, investments, and brokerage accounts must be disclosed, including stocks, bonds, mutual funds, and other investment vehicles, with current statements showing values and ownership information.

  • Real Property Disclosure (SDCL § 25-4-47)

    All real property interests must be disclosed, including deeds, mortgage information, property tax assessments, and recent appraisals or market analyses to establish current value.

  • Insurance Policy Disclosure (SDCL § 25-4-48)

    All insurance policies must be disclosed, including life, health, property, and casualty insurance, with information on beneficiaries, cash surrender values for life insurance, and premium costs.

  • Bankruptcy Disclosure (11 U.S.C. § 541)

    Any pending or recent bankruptcy proceedings must be disclosed, as they may affect the division of property and debt allocation in the divorce or separation proceedings.

  • Child's Assets Disclosure (SDCL § 55-10-1)

    Assets held in trust or otherwise for the benefit of minor children must be disclosed, including college savings accounts, UTMA/UGMA accounts, and any other assets designated for children's benefit.

  • Discovery Compliance (SDCL § 15-6-26)

    Financial disclosures must comply with South Dakota's rules of civil procedure regarding discovery, including timely responses to requests for production of documents and interrogatories related to financial matters.

  • Sanctions for Non-Disclosure (SDCL § 15-6-37)

    Failure to provide complete and accurate financial disclosure may result in sanctions, including but not limited to attorney's fees, costs, and potential modification of property division or support orders.

  • Confidentiality of Financial Records (SDCL § 15-15A-8)

    Financial records submitted as part of disclosure may be subject to confidentiality protections under South Dakota law, particularly sensitive information such as social security numbers, account numbers, and children's information.

Frequently Asked Questions