How to Divorce -- Discovery

Discovery – The Financial Declaration

            Unless your case is settled quickly, you will be required to participate in “discovery” proceedings.  Each party must have all of the information and documentation necessary to prepare for mediation, to engage in settlement talks, and to prepare for trial.  Utah law requires that each side provide a Financial Declaration on the State approved form as well as supporting documents for the Financial Declaration such as:

o  For the two tax years before the petition in this case was filed, complete federal and state income tax returns, including Form W-2, Form 1099, and Form K-1, and supporting tax schedules and attachments filed by you and by any entity in which you have a majority or controlling interest.

o  Pay stubs and other evidence of all earned and un-earned income for the 12 months before the petition in this case was filed.

o  All loan applications and financial statements prepared or used by the party completing the financial declaration within the 12 months before the petition in this case was filed.

o  Documents verifying the value of all real estate in which the party has an interest, including the most recent appraisal, tax valuation and refinance documents.

o  All statements for the 3 months before the petition in this case was filed for all financial accounts, including checking, savings, money market funds, certificates of deposit, brokerage, investment, and retirement.

o  If any of the documents required to be attached to this Financial Declaration are not reasonably available or are in the possession of the other party, then estimate the amounts entered on this Financial Declaration, and complete Paragraph (13) explaining the basis for the estimation and why the documents are not available.

The Financial Declaration is a financial balance sheet showing income, expense, assets and liabilities and must be completed as correctly as possible.  Any amounts estimated must be set forth as estimates with an explanation as to the reason and basis for the estimate.   The Petitioner is required to submit to the other party the Financial Declaration within 14 days of service of the Answer with the Respondent providing a Financial Declaration the latter of 28 days from the Petitioner’s service of a Financial Declaration or 28 days from the date of the Respondent’s appearance.  A copy of the Financial Declaration and a Certificate of Service is filed with the Court, but most courts only want the first page of the party’s taxes or a pay stub to prove the party’s income. 

Because a Financial Declaration becomes evidence should the matter go to trial and is used for making any temporary orders, the amounts set forth in the expenses and income should be correct.  Often, there is a tendency to overstate expenses to avoid paying alimony or attorney’s fees, but a savvy attorney/party will point out such discrepancies to the court making you look bad and untrustworthy.  Since a divorce trial can come down to credibility, you do not want to make a mistake with your Financial Declaration.