Financial Affidavit and Disclosure - Enhanced Legal Workflow Prompt

You are tasked with drafting a comprehensive Financial Affidavit and Disclosure for use in family law litigation proceedings. This document serves as a sworn statement of the affiant's complete financial circumstances and must meet all jurisdictional requirements for financial disclosure in domestic relations matters. The affidavit will be filed with the court and may be subject to cross-examination, so accuracy, completeness, and compliance with local rules are paramount.

Document Purpose and Legal Context

Begin by understanding that a Financial Affidavit and Disclosure is a critical litigation document used primarily in family law matters including divorce, child support, spousal maintenance, and property division proceedings. This sworn statement provides the court and opposing parties with a complete picture of the affiant's financial situation. The document must comply with applicable state or local court rules regarding financial disclosures, which often mandate specific formats, required attachments, and levels of detail. Ensure you are familiar with the jurisdiction's specific requirements, as some courts provide mandatory forms while others allow more flexibility in format.

Header and Jurisdictional Information

Draft a formal header that establishes the document's legal context and identifies all parties. Include the full name of the court (including division if applicable), the complete case caption with all parties' names as they appear in the initial pleadings, and the assigned case or docket number. Provide the affiant's complete identifying information in a clear, organized manner:

• Full legal name, current residential address, and contact information
• Date of birth, age, Social Security number (last four digits may be sufficient depending on jurisdiction), and current marital status
• Current employment status, employer name and address, job title, and length of employment
• Educational background and professional qualifications relevant to earning capacity
• Physical health status if it affects employment or financial circumstances

Ensure the header clearly identifies this document as a "Financial Affidavit and Disclosure" or uses the specific title required by local court rules.

Comprehensive Income Disclosure

Provide a detailed accounting of all income sources, recognizing that courts require disclosure of both earned and unearned income from all sources. Begin with employment income, specifying gross monthly wages or salary, the pay frequency, and any regular overtime or shift differentials. Document all additional compensation including bonuses (both discretionary and guaranteed), commissions, tips, profit-sharing, stock options, and deferred compensation arrangements. Specify whether these amounts are annual, quarterly, or irregular, and provide monthly averages.

Address all unearned income sources with equal specificity. List investment income including interest, dividends, capital gains, and rental property income (gross rents minus ordinary expenses). Disclose retirement income from pensions, annuities, Social Security, or distributions from retirement accounts. Include any public assistance, unemployment benefits, workers' compensation, disability payments, or other government benefits. If the affiant receives spousal support or child support from a previous relationship, document these amounts separately. For self-employed individuals or business owners, provide detailed information about business income, including gross receipts, ordinary business expenses, and net income, with reference to supporting tax returns and financial statements.

Calculate and clearly state the total gross monthly income and total net monthly income after mandatory deductions (taxes, Social Security, Medicare, mandatory retirement contributions). Attach supporting documentation including recent pay stubs (typically three to six months), W-2 forms, 1099 forms, tax returns (usually two years), and business financial statements if applicable.

Detailed Monthly Expense Analysis

Itemize all reasonable and necessary monthly living expenses in sufficient detail to allow the court to assess the affiant's financial needs and standard of living. Organize expenses into logical categories that align with your jurisdiction's requirements or standard practice. For housing expenses, separately list mortgage or rent payments, property taxes, homeowner's or renter's insurance, homeowner association fees, and maintenance costs. Utility expenses should include electricity, gas, water, sewer, trash collection, telephone (landline and mobile), internet, and cable or streaming services.

Document household operating expenses such as groceries and household supplies, dining out, clothing and personal care items, laundry and dry cleaning, and household furnishings and maintenance. Transportation costs must include vehicle loan or lease payments, automobile insurance, fuel, maintenance and repairs, registration and licensing fees, and parking or tolls. If public transportation is used, provide those costs instead.

Include all insurance premiums not deducted from wages: health insurance, dental and vision insurance, life insurance, and disability insurance. List all debt payments separately, including credit card minimum payments, personal loans, student loans, and any other installment obligations. Document child-related expenses if applicable, such as childcare, education costs, extracurricular activities, and medical expenses not covered by insurance. Include support obligations for children from other relationships.

Address discretionary but regular expenses including entertainment and recreation, gifts and charitable contributions, pet care, subscriptions and memberships, and savings or investment contributions. Calculate and clearly state the total monthly expenses. Ensure that the relationship between income and expenses is reasonable and explainable; significant discrepancies may require additional explanation.

Complete Asset Inventory

Provide a comprehensive inventory of all assets owned individually, jointly, or in which the affiant has any beneficial interest, regardless of whether the asset is considered marital or separate property. For each asset category, specify the nature of ownership (individual, joint, tenancy type), the date of acquisition, the current fair market value, and any encumbrances or liens.

Real property should be described with complete legal descriptions or street addresses, purchase dates and prices, current estimated market values (supported by recent appraisals, tax assessments, or comparative market analyses), outstanding mortgage balances, and equity positions. For vehicles, provide the year, make, model, VIN, current mileage, estimated value (reference Kelley Blue Book or similar), and outstanding loan balances.

Financial accounts require detailed disclosure. List all bank accounts (checking, savings, money market) with institution names, account numbers (partial for security), and current balances as of a specific recent date. Document all investment accounts including brokerage accounts, stocks, bonds, mutual funds, and certificates of deposit with current values. Retirement accounts must be separately identified: 401(k), 403(b), IRA, Roth IRA, pension plans, and deferred compensation plans, with current account values and vested amounts if different.

Disclose business interests including ownership percentages in corporations, partnerships, LLCs, or sole proprietorships, with business valuations if available. List other significant assets such as valuable personal property (jewelry, art, collectibles, antiques), life insurance policies with cash value, intellectual property rights, pending legal claims or settlements, trust interests, and any other assets of significant value. For personal property, general categories with estimated total values may be acceptable unless specific items are particularly valuable or contested.

Liabilities and Debt Obligations

Provide a complete accounting of all debts, obligations, and liabilities, whether incurred individually or jointly, and regardless of whether they are considered marital or separate debts. For each liability, identify the creditor, the original debt amount, the current outstanding balance, the monthly payment amount, the interest rate, and whether the debt is secured or unsecured.

Mortgage debt should reference the associated property and include the original loan amount, current principal balance, monthly payment (including principal, interest, taxes, and insurance if escrowed), interest rate, and loan maturity date. Vehicle loans should be tied to specific vehicles with similar detail. Credit card debt requires the creditor name, account number (partial), credit limit, current balance, minimum monthly payment, and interest rate for each account.

Document all other installment loans including personal loans, student loans, medical debt, tax obligations (federal, state, local), and any judgments or liens against the affiant or their property. If the affiant is a guarantor or co-signer on any debts, disclose these contingent liabilities. Include any domestic support obligations from previous relationships, specifying whether they are current or in arrears.

Calculate and clearly state the total outstanding debt. Ensure that all debt payments listed in the expense section correspond to debts listed in this section. If any debts are in collection, default, or subject to payment plans, provide specific details about the status and arrangements.

Additional Financial Disclosures and Special Circumstances

Address any financial circumstances not fully captured in the previous sections that are relevant to the court's understanding of the affiant's financial situation. Disclose any anticipated significant changes in income or expenses, such as scheduled raises, bonus expectations, job changes, retirement plans, or known upcoming expenses. If the affiant has recently experienced or anticipates experiencing a substantial change in financial circumstances (job loss, inheritance, sale of property, business changes), provide detailed explanation.

Document any support obligations or financial responsibilities for individuals other than those involved in the current proceeding, including elderly parents, adult disabled children, or children from other relationships. If the affiant has filed for bankruptcy or has any pending bankruptcy proceedings, provide complete details including the chapter, filing date, case number, and current status.

Disclose any tax refunds anticipated or recently received, any pending legal claims that may result in financial recovery, and any loans from family members or friends that may not appear on credit reports. If the affiant has transferred, sold, or disposed of any significant assets within the past two to three years (or the period specified by local rules), provide details of these transactions including the asset description, transfer date, recipient or purchaser, and consideration received.

Address any extraordinary expenses or financial hardships that affect the affiant's ability to meet obligations, such as ongoing medical treatment, special needs of dependents, or court-ordered obligations. If the affiant maintains separate households or has unusual living arrangements that affect expenses, explain these circumstances.

Verification, Declaration, and Execution

Conclude the affidavit with a formal verification section that transforms this financial statement into a sworn legal document. Draft a declaration paragraph in which the affiant swears or affirms under penalty of perjury that they have read the entire affidavit, that the information contained therein is true, accurate, and complete to the best of their knowledge and belief, and that they understand that any false statements may subject them to criminal penalties for perjury.

Include appropriate language that complies with your jurisdiction's requirements for unsworn declarations or sworn affidavits. Some jurisdictions require specific statutory language for declarations under penalty of perjury. The declaration should reference the specific statute if required (such as 28 U.S.C. § 1746 for federal matters or state equivalents).

Provide signature lines for the affiant including a line for printed name, signature, and date. Include a statement that the affiant is competent to make this declaration and is doing so of their own free will. If notarization is required in your jurisdiction, include a complete notary acknowledgment section with appropriate space for the notary's signature, seal, commission expiration date, and any other required notarial language.

Document Assembly and Quality Control

Before finalizing the document, verify that all sections are complete, all calculations are accurate, and all required supporting documentation is referenced and attached. Ensure that the document complies with any page limits, formatting requirements, or mandatory forms required by local court rules. Cross-reference all figures to ensure consistency between sections (for example, debt payments in the expense section should match debts listed in the liability section).

Review the document for internal consistency and reasonableness. The relationship between income, expenses, assets, and liabilities should present a coherent financial picture. If there are apparent discrepancies (such as high expenses relative to income, or low asset accumulation relative to historical income), consider whether additional explanation is needed.

Confirm that the document is organized logically, uses clear headings and subheadings, employs professional legal formatting, and is free from grammatical or typographical errors. Ensure that all confidential information is handled appropriately and that any required redactions (such as full Social Security numbers or bank account numbers) are made if the document will be filed publicly.

The completed Financial Affidavit and Disclosure should be a comprehensive, accurate, and professionally prepared legal document that fully satisfies the court's requirements for financial disclosure and provides a complete picture of the affiant's financial circumstances as of the date of execution.