The way information is shared between parties in a divorce case varies depending on the court in which the case is heard. In general, mandatory disclosure is required in Family Court, while discretionary disclosure may be ordered in Supreme Court.
The type of information required to be disclosed also differs between courts. In Family Court, both financial and non-financial information must be disclosed, while in Supreme Court, only financial information is typically mandatory. Irrespective of the type of disclosure, one usually exchanges a net worth statement. However, it is required during mandatory disclosure. The family court calls this a financial disclosure affidavit. In addition, it is required that they also submit their last filed tax return, last filed W-2 or 10-99, recent pay stubs, and anything else relevant to the child support calculation.
Therefore, if the custodial parent says childcare expenses have been incurred, they should undoubtedly document that on some level. At the least, a notarized letter from the childcare provider should suffice (along with proof of payment). This way, if the non-custodial parents demand proof, it will be on record.
Here are some examples of excellent record-keeping during a child support case: Suppose the custodial parent has the children covered on their medical insurance plan. In that case, they would need to provide documentation establishing the difference between the individual and family plan.
Additionally, suppose the children are enrolled in a private school. In that case, the custodial parent must produce an invoice from the private school showing the tuition expense. The same applies if they are enrolled in an after-school program or summer camp. One also needs to produce proof of payment of these expenses.
The rules during a discretionary disclosure are different and can be as wide as the issues are in the case. One particularly problematic instance is when someone owns a business. This is because they could be asked to produce a sampling of invoices, bills, or receipts corroborating their business expenses.
Typical categories of disclosure include:
- Records Of Income
- Business Expenses
- Bank Account Statements
- Investment Account Statements
- Employment Contracts
- Employment-Related Fringe Benefits
- Real Estate Documents
- Documents Regarding Sale/Transfer of Personal Property
- Credit Card/Debt Account Statements
- Retirement Account Statements
- Insurance Policies & Statements
- Documents Pertaining to Gifts or Gambling Winnings
- Unreimbursed Medical Expense Statements
- Personal Financial Statements
- Proof Of Income of Other Household Members
- Vehicle Documents
Does A Business Partner Have To Disclose All Details Of A Business If Their Partner Is In A Contested Divorce Situation?
If there is a co-owner of a business owned by someone in a contested divorce, they have just as much access to the business accounts as the partner does. Therefore, it’s the same as if the IRS audits the business.
If the IRS audits the business, it’s not like one partner can say, “I’m not going to turn over the receipts to the IRS.” They would want to turn that documentation over. Not doing so would only lead to the IRS imposing penalties and interest.
If the custodial parent is the one that owns the business, the court can impute income to them. The court has the power to demand receipts, bills, and invoices corroborating all business expenses. This process is designed to prevent fraud.
For more information on Information In A Contested Child Support Case, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (914) 362-3080 today.