Marriage, in its essence, is all about mutual respect, honesty, and truthfulness between people who decide to spend the rest of their lives together. When you take honesty and respect out of the equation, there is little left to keep spouses together. In such a scenario, divorce is inevitable.
Your marriage might be on the verge of collapse due to a lack of honesty and openness, causing anxiety, depression, and emotional distress for everyone involved. But in the North Carolina divorce process, ignoring the truth – especially in financial matters – can leave you with serious legal consequences.
This blog post will demystify North Carolina’s financial disclosure rules and explain the consequences of inadequate disclosure while highlighting the significance of quality legal representation in ensuring transparency and fairness during divorce proceedings.
In North Carolina, transparency is the cornerstone of a fair divorce procedure. As an equitable distribution system, it prioritizes acquiring accurate financial information that results in just decisions about marital property division, child custody and support, alimony, and other financial aspects of marriage dissolution. The primary goal of the North Carolina divorce is getting an accurate and complete picture of both spouses’ financial situation.
Full financial disclosure is a key to a transparent process and a basis for fair and informed decisions shaping the future of former spouses and their children.
Only with a comprehensive understanding of the collapsing marriage and its financial landscape judicial system can reach evidence-based and fair resolutions.
Now that you know the significance of financial transparency in the North Carolina divorce proceedings – let us explain what financial disclosure is and what counts as complete transparency in court.
North Carolina law provides a Financial Disclosure form both spouses must fill out and submit during the divorce process. Here is what information qualifies as full financial disclosure:
Assets and liabilities are what constitute everyone’s property. The Financial Disclosure form primarily focuses on these two aspects of your financial world, just as doctors focus on accurately diagnosing your health condition.
Assets encompass real estate, bank accounts, vehicles, investments, retirement accounts, jewelry, and other valuable items.
On the other hand, debts are loans, credit card balances, mortgages, and other financial obligations.
While assets count as a static aspect of your property, income is the dynamic part – it shows the money flow and how you built your assets. You should include the following income sources in the Financial Disclosure form: salaries, rental income, bonuses, business profits, investments, and other financial gains.
The North Carolina Financial Disclosure form categorizes monthly expenditures, such as housing, groceries, utilities, education, childcare, healthcare, and other regular expenses.
Finally, a complete financial disclosure cannot work without including past tax returns and current tax filings.
Transparency is the essence of North Carolina’s court proceedings, especially in family matters. It promotes the courts’ integrity and the citizens’ trust in the judicial system. Any disrespect to rules regulating transparency and disclosures undermines the foundations of the system as a whole.
When we put that in the financial disclosure context, it is clear that failing to provide complete and accurate financial data during divorce proceedings can produce serious repercussions. Here is what ignoring the truth and hiding financial information during the court process can expose you to in North Carolina:
North Carolina law does not require you to have professional legal representation during the divorce process. However, navigating the complex legal landscape of financial disclosures is unthinkable without the help of an experienced family attorney. A skilled lawyer will explain the financial disclosure rules and help you grasp the legal requirements for complete financial transparency. With a well-versed attorney, you can go through the process confidently without fear of legal consequences resulting from non-compliance with financial disclosure rules.
Here are key areas where a family lawyer can assist you in North Carolina financial disclosure:
Larry Hudspeth is a top-tier North Carolina family attorney with experience stretching back to 1989. Throughout his eventful career, Larry has successfully dealt with hundreds of family cases, ranging from highly contested divorces to child custody to alimony.
In his view, honesty and transparency in financial matters are paramount. Larry will not only help you fulfill legal requirements concerning full financial disclosure. He will educate you on the importance of acting fairly and transparently because that is the soil that bears the best fruits of justice.