When navigating family law matters such as divorce, child custody, and child support, both parties are required to provide transparent financial information. This is done through a process known as completing a “Financial Declaration.” These declarations play a critical role in ensuring that courts can make informed decisions regarding property division, alimony, and child support. Below is a breakdown of the obligations each party has when it comes to completing and serving their Financial Declaration.
Scope of the Rule
This rule applies to most domestic relations cases in Utah, including:
- Divorce
- Temporary separation
- Separate maintenance
- Parentage (paternity)
- Custody disputes
- Child support
- Modifications of prior orders
However, this rule does not apply to adoptions, enforcement of prior orders, protective orders (like cohabitant abuse or child protective orders), civil stalking injunctions, or cases involving grandparent visitation.
Timing of Financial Disclosures
In addition to initial disclosures (required under Rule 26), each party must submit their Financial Declaration and accompanying documents to the other party within 14 days of the first answer being filed in the case. This ensures that both sides have access to essential financial information early in the process, allowing negotiations and decisions to proceed efficiently.
What Is Included in a Financial Declaration?
Each party must use the court-approved Financial Declaration form and provide the following key documents:
- Verification of Listed Items
Each item listed in the Financial Declaration (except monthly expenses) must be backed up by verifying documents, such as statements or receipts that reasonably confirm the listed amounts. - Tax Returns
Parties must provide their complete federal and state income tax returns for the two years preceding the case filing. This includes Forms W-2, 1099, K-1, and other supporting schedules. - Income Evidence
Pay stubs and proof of all income (both earned and unearned) from the 12 months before the case began must be provided. - Loan Applications & Financial Statements
If the party applied for loans or prepared financial statements within the 12 months prior, these documents must be submitted. - Real Estate Valuations
Any real estate in which the party holds an interest must be valued with documentation, including appraisals, tax valuations, or refinance documents. - Financial Account Statements
Bank, investment, retirement, and other financial account statements for the 3 months prior to filing must be provided, regardless of whether accounts are open or closed. This includes accounts held jointly or in trust for others. - Unavailable Documents
If certain documents are not available, the party must estimate the amounts and explain why the original documents are not accessible.
Filing and Service
Once the Financial Declaration and its attachments are prepared, each party must file a Certificate of Service with the court to certify that the documents were served to the other party. This ensures proper documentation and accountability.
Exemptions
Some parties are exempt from full financial disclosure, including:
- State agencies: They are not subject to these requirements.
- Cases with no assets at issue: In paternity, modification, and grandparent rights cases, only minimal financial information is needed, such as:
- The last three current pay stubs,
- Previous year’s tax return,
- Bank statements (for self-employed parties), and
- Any other income or asset proof relevant to child support determinations.
In such cases, the court may still require a full Financial Declaration for attorney fee awards or other reasons.
Sanctions for Non-Compliance
Failing to fully disclose all assets and income in the Financial Declaration may result in penalties under Rule 37. These can include:
- An award of non-disclosed assets to the other party,
- Attorney’s fees,
- Other court-imposed sanctions.
Consequences of Failure to Comply
Even if a party fails to comply with this rule, it does not prevent the other party from moving forward with the case. Parties can still seek default judgments or other relief from the court.
Accurate and Timely Disclosures
Accurate and timely financial disclosures are vital in domestic relations cases to ensure fairness and transparency. By fully complying with these rules, parties can avoid potential sanctions and ensure that the court has all necessary information to make informed decisions.
Need Help with Your Family Law Case?
Navigating family law cases can be complex and stressful. If you need guidance or representation, contact Ellsworth Law Firm today. Our experienced family law attorney can help you every step of the way, ensuring your rights are protected. Call us at 801-210-2829 or visit our office in Lehi, Utah, to schedule a consultation. We’re here to support you in achieving the best possible outcome for your case.
