What Are "Mandatory Financial Disclosures"?
Because of the special relationship between spouses, Colorado law requires “full and honest disclosure” of all material facts that effect both spouses and their children. Part of this requirement includes mandatory disclosure of financial documentation (“mandatory financial disclosures”). The following documents must be provided within 42 days after the Petition for Dissolution or Legal Separation is served.
This list is likely to feel overwhelming, but you should not panic. If you do not have any of the documents listed in a category, you can skip that category. You should plan on dedicating a couple of hours to complete these disclosures.
Sworn Financial Statement:
This document lists all of your income, expenses, and assets. It provides a summary of your financial state. This document will be filed with the court.
Income Tax Returns:
You must provide your three most recent tax returns.
Personal Financial Statements:
You must include copies of any credit or loan applications you have completed in the last three years. If you prepare a document that shows a listing of your assets and liabilities, this should also be included for the most recent three years.
Business Financial Statements:
If you have access to financial statements for a business, you must provide the business’ financial statements for the past three years. You should also include a year-to-date financial statement for each business.
Real Estate Documents:
All title documents and any documents showing the value of any real property you own. This can include appraisals, projections of listing price from a real estate agent, or informal documents, such as screen shots of real estate websites with an estimated value.
Personal Debt:
This includes credit card statements, mortgage statements, and student loan statements.
Investments:
You must provide the most recent statements you have received showing each investment account you own, as well as the value of the account.
Employment Benefits:
Provide the most recent account statement showing all of your employment benefits and the value of those benefits. If you do not have a copy, you can get these documents from the Human Resources department of your company.
Retirement Plans:
Your most recent retirement account statement, and the value of the account. You must also provide Summary Plan Descriptions.
Bank Accounts:
You must provide your most recent statements for each bank account you own. The statement must show the current value of the accounts.
Income Documents:
Provide all documents showing your income for both the current and previous calendar year. This includes W2s, pay stubs, gifts, trust distributions, and prizes or lottery winnings. If you are self-employed, you should provide a sworn statement showing your gross income, business expenses, and net income for the previous three months.
Employment and Education-Related Child Care Documents:
If you have child care expenses for work or school, provide any documents that show your average monthly expense. This can include receipts, bills or invoices, check stubs, or credit card statements.
Insurance Documents:
You must provide insurance documents for life, health, and property insurance policies. The documents must show the beneficiary, coverage, cost, and payment schedule.
Extraordinary Children’s Expenses:
This category includes medical expenses, private school tuition, fees for extracurricular activities, school trips and activities, school supplies, and any special school clothing (such as uniforms for private school). You should include receipts, credit card statements, or check stubs showing the average monthly amount of these expenses.
You should begin gathering these documents as soon as your Petition is filed. Even if you think you cannot afford an attorney, call Katelyn to discuss unbundled representation to help you prepare these disclosures, or to answer any questions you may have.