Summary of Blog:
Critical Divorce Document: The Statement of Net Worth is a mandatory, sworn financial disclosure in all divorce cases involving finances—covering income, expenses, assets, and debts.
Foundation for Support and Property Claims: Courts and attorneys rely heavily on this document to assess spousal and child support, as well as equitable distribution of marital assets.
Accuracy is Key: ?Errors or omissions in the Statement can lead to severe legal consequences, including sanctions or adverse rulings—making honesty and completeness vital.
Table of Contents
What is the Statement of Networth
The Statement of Networth is a critically important document in New York Divorce Law. It must be filled out several times during the divorce. You cannot make an application for child or spousal support without it. It is required to be filed with the court in advance of the first conference with the court, called the Preliminary Conference.
In this document the parties are suppose to list every single asset, debt and income. And then the parties swear to the truth of the document. Here’s a link to the form. Take a look at and you’ll see how complex and detailed it is. And this is an official court document.
This document is very invasive and can be overwhelming. I’ve seen countless people go through this, and so I know how overwhelming it can be. I had one client cry when I handed her the blank form.
But don’t worry—I’m going to break down exactly what happens after financial disclosure in a divorce, so you know what to expect and can prepare for what’s ahead.
We need to figure out what each party earns, owns and owes:
- Income (salary, bonuses, rental income, investments)
- Expenses (housing costs, child care, health insurance, debts)
- Assets (bank accounts, retirement accounts, real estate, vehicles)
- Debts and Liabilities (credit card balances, mortgages, loans)
The purpose of this form is to ensure that both parties have a clear and accurate understanding of each other’s financial situation. This transparency is essential in determining:
Filing Out the Statement of Networth
The first step to filling out the Statement of Networth is not to panic and worry about all the questions. Recall, that the Court created the form as a one size fits all solution. Most of the questions have nothing to do with you. Only answer the questions that relate to you.
Next, all the boxes are for monthly expenses or monthly payments. If the debt occurs only once a year, divide it by twelve. For examine, if you took a family vacation and spent $6000, then divide that number by 12, and put that number in the “vacation expense” box. In this example that is “500.”
Keep in mind in the section on expenses we are looking for what you spend on a monthly basis. In the asset section, we are looking for what you own. This includes bank accounts, cars, houses, etc.
The debt section is what you owe. I’ve seen many folks get confused over this. In the monthly expense section, we want your monthly payment on the mortgage, for example. But, in the debt section we need to know the total amount owed on the mortgage, not your monthly payment.
We all need to know about all of your bank accounts and retirement accounts. Even if you want to claim a bank account you got from your mother as separate property, you must put it down on the Statement of Networth.
That’ right, even separate property gets listed on the form
Step 1: Gather Your Financial Documents
Before you start filling out the form, collect all necessary financial records, including:
a. Recent pay stubs (to verify income)
b. Last 2-3 years of tax returns
c. Bank account statements (checking, savings, investment accounts)
d. Retirement account statements (401(k), IRA, pensions)
e. Mortgage and loan statements (credit cards, car loans, personal loans)
f. Utility and household bills (rent, insurance, medical expenses)
Having these documents on hand will make completing the form much easier and more accurate.
Step 2: Be Thorough and Honest
It’s tempting to leave out certain details—maybe a side hustle, a recent bonus, or an asset you don’t want to share. However, honesty is key. Courts take financial disclosure very seriously, and if you or your spouse provide false or incomplete information, it can lead to penalties, fines, or even a court ruling that favors the other party.
Step 3: Categorize Your Expenses and Assets
Your form will require a breakdown of:
- Monthly expenses (rent, groceries, utilities, transportation)
- Fixed debts (car loans, student loans, credit card debt)
- Joint assets and separate property (detailing what was acquired before or during the marriage)
The more detailed your disclosure, the more smoothly your divorce proceedings will go.
Step 4: Be careful
This is a sworn document. If you have to go trial or even a deposition, you will be questioned about all the items in your Statement of Networth. If you have left out a bank account, or a stock account, or even a house, count on your spouse’s attorney knowing about it. I really hate when my client is being cross examined and I find out for the first time about a hidden asset. It never goes well.
The Jumping Point
Once financial disclosures are exchanged and verified, the real work begins.
Many times the parties are indeed being honest and we can move forward to negotiating a settlement. Other times the Statement of Networth is a jumping point, and can lead us to more assets and more bank accounts. In today’s electronic society it is very hard to hide money. Even cryto can often be found.
Your lawyer has to the power to subpoena records. For example, if I subpoena bank records, I can find money for purchases, or even money going to other bank accounts. In one case, one bank account led me to 13 other accounts. The mother was claiming an income of $29,000 a year and I found that she spend $29,000 A MONTH!
Court Motions and Forcing the Truth
I mentioned the Preliminary Conference above. That is the first meeting with the Judge and the Judge wants the Networths exchanged. The court will also set a schedule to turn over bank records and other financial documents
Judges really don’t like when one party plays hide the ball. The Judge has power to issue orders to force disclosure. And as I said above, the attorneys can also issue subpoenas.
If a party is still hiding assets, the Judge can sanction them, and force them to pay a monetary penality. The Judge can also prevent them from presenting evidence at trial. This could prevent them from defending their case. The court can also take “an adverse inference.” What that means is that the court can infer that the failure to produce the documents was intended to hide assets. For example, if the Judge take an adverse inference, then she could award more than 50% or even 100% of another asset to the innocent spouse. If spouse 1 hides accounts, then the Judge could award spouse 2 the entire million dollar house.
Pre-Trial Preparation (If No Settlement)
If you and your spouse cannot agree on financial matters, your case will move toward trial preparation. This phase involves:
- Depositions (sworn testimony from both spouses and possibly experts)
- Gathering expert witness reports (such as forensic accountants or property appraisers)
- Subpoening finanical records
- Possibily hiring a forensic account
- Preparing legal arguments for trial
This phase can be expensive and time-consuming, but in some cases, it’s the only way to ensure a fair outcome—especially if one party is hiding assets or refusing to negotiate in good faith.
Final Settlement or Trial
Option 1: Reaching a Final Settlement
The reality is that most divorce cases settle before going to trial. I have divorces settle on the day of trial or even during the testimony of a witness. This is becasue after months of back-and-forth, many couples realize that a drawn-out court battle isn’t worth it. A final settlement will typically include:
- A written agreement outlining how assets, debts, and support payments are divided.
- Final court approval, where a judge reviews the terms to ensure fairness.
- Execution of necessary transfers, such as changing property deeds or dividing retirement accounts.
Once everything is signed, the judge finalizes the divorce, and you can finally move forward.
Option 2: Going to Trial
If no settlement is reached, your divorce will go to trial. This is where each side presents evidence and arguments before a judge, who will make the final decisions. Divorce trials can be:
- Expensive (legal fees can skyrocket)
- Emotionally draining (public court battles take a toll)
- Time-consuming (some cases drag on for years)
A judge’s ruling is final, and both parties must abide by the decision, even if one disagrees. Every Judge I know warns people against trial. Everyone of these asks “Do you want a stranger to decide your life.”
Final Thoughts: Be Proactive, Stay Informed
Understanding what happens after financial disclosure in divorce can help you stay prepared, reduce stress, and protect your financial future. Whether you’re in negotiations or headed for trial, knowing what’s next allows you to make informed decisions and avoid costly mistakes.
Every divorce is different, so it’s always wise to consult an experienced family law attorney to guide you through the process. And remember—you’re not alone. Divorce is a challenging journey, but with the right approach, you can come out stronger on the other side.
Need Help with Your Divorce?
Call Port and Sava for a free 15 minute telephone consultation at (516) 352-2999. We help you get on with the rest of your life.
Frequently Asked Questions: Statement of Net Worth in New York Divorce Cases
1. What is a Statement of Net Worth?
A Statement of Net Worth is a detailed, sworn financial document required in New York divorce cases. It lists your income, expenses, assets, debts, and financial obligations—and must be completed accurately under oath.
2. Who needs to file a Statement of Net Worth?
Both parties in a divorce involving financial issues—such as spousal support, child support, or property division—must file a Statement of Net Worth. It ensures full financial disclosure between the spouses and to the court.
3. What happens if I don’t file one?
Failing to file a Statement of Net Worth can delay your case, lead to court sanctions, and weaken your credibility. Courts view full financial disclosure as critical to a fair divorce process.
4. What if I make a mistake on my Statement of Net Worth?
Mistakes—especially omissions or understatements—can seriously hurt your case. Errors can lead to penalties, adverse rulings, or findings that you tried to mislead the court. Always double-check the numbers or work with your attorney to ensure accuracy.
5. Is it okay to estimate my expenses and assets?
While some estimates are inevitable (like future expenses), you should be as precise as possible. Use real numbers from bank statements, pay stubs, bills, and tax returns to back up your entries.
6. What financial information do I have to include?
You must list:
- All sources of income (wages, bonuses, investments)
- Monthly living expenses (housing, utilities, insurance, etc.)
- All assets (bank accounts, retirement accounts, property, valuables)
- All debts (credit cards, loans, mortgages)
7. Will the court actually look at every line of the Statement of Net Worth?
Yes. Judges and attorneys carefully review these documents to understand each party’s financial position. The Statement can influence decisions about spousal support, child support, property division, and legal fees.
8. Can my spouse and I agree not to file a Statement of Net Worth?
Generally, no. The court requires financial disclosures to ensure any agreements made are fair, informed, and enforceable. Even in uncontested divorces, at least one party’s Statement is typically required. But, in some uncontested divorces the parties can agree not to do them. This is only a good idea if both parties know exactly what the marital assets are.
9. How detailed should my entries be?
Be thorough and honest. It’s better to over-disclose than under-disclose. Providing full details about your finances shows good faith and protects you from accusations of hiding assets or income.
