Financial Disclosure During Divorce in Florida
In this article, we’ll break down:
- Are financial affidavits always required in a divorce?
- Can financial affidavits be waived in divorce?
- What happens if a financial affidavit is false?
- Are financial affidavits required for temporary support?
- Can courts rely on outdated financial affidavits?
- Do financial affidavits violate privacy rights?
- Can judgments be reversed for missing affidavits?
- Are affidavits needed for attorney fee awards?
- Can courts impute income from affidavits?
- Are affidavits required if no financial relief is sought?
Going through a divorce can be an emotionally and financially challenging time, and understanding your legal responsibilities is crucial to ensuring a fair outcome. One of the most important aspects of the divorce process in Florida is full and accurate financial disclosure.
Florida law requires both parties to provide a comprehensive disclosure of their finances early in the divorce proceedings. This includes income, assets, liabilities, and expenses. These disclosures form the foundation for decisions regarding alimony, child support, and property division.
Failing to provide complete or truthful information can lead to serious legal consequences and may significantly impact the outcome of your case. Understanding the role of financial disclosure—and approaching it with honesty and diligence—is essential to achieving a fair and equitable resolution.
Q: Are financial affidavits always required in a divorce?
According to Florida case law, financial affidavits are not mandatory in every divorce proceeding. In Salczman v. Joquiel, the court held that financial affidavits are required only when a party requests permanent financial relief, such as alimony, child support, or equitable distribution of assets. If no such relief is being sought, the affidavits are considered irrelevant and are not necessary for the dissolution of the marriage.
See: Salczman v. Joquiel – 776 So.2d 986
“Where a party to a marriage dissolution action seeks to have the court make an award of permanent financial relief, financial affidavits are mandatory. It stands to reason then, that if a court in a marriage dissolution proceeding is not being called upon to award any permanent financial relief to a party, financial affidavits are not required and are wholly irrelevant to the proceeding.”
“In this case, the former wife never requested any form of permanent financial relief from the former husband in the petition for dissolution. Although, the former husband in his answer requested the equitable distribution of the parties’ two jointly titled assets, he and the former wife resolved this issue amongst themselves in accordance with the terms of their antenuptial agreement prior to the final hearing before the lower court. Having found this agreement to be fair and reasonable on its face and entered into after full disclosure between the parties, the court was presented with absolutely no issue as to permanent financial relief for either party. Thus, the filing of financial affidavits would serve no purpose under the facts of this case and we do not believe that the rule mandates that they be filed.”
Q: Can financial affidavits be waived in divorce?
According to Florida case law, since financial affidavits are not required in every dissolution of marriage, affidavits can be waived. In Kelner v. Kelner, the court clarified that in a simplified divorce, where the parties have already divided their property through a marital settlement agreement and neither is seeking financial support, the requirement to file financial affidavits may be waived. Despite standard rules suggesting both parties must file, the court recognized that the affidavits serve no purpose when permanent financial relief is not at issue.
See: Kelner v. Kelner – 970 So.2d 933
“The court noted that, although rule 12.105 governing simplified dissolution states the parties ‘must each file a financial affidavit,’ that rule does not contain the language specifically preventing waiver found in rule 12.285. Id. at 362-63. The court reasoned that ‘[t]he deliberate exclusion of this language evidences a different meaning was intended with regard to financial disclosure in simplified dissolution proceedings.’ Id. at 363. The court concluded that ‘a party may waive the filing of a financial affidavit in a simplified proceeding under Rule 12.105 by failing to object at trial.'”
“Parties to a simplified dissolution of marriage could waive the filing of financial affidavits, despite the language in the rule governing the simplified dissolution procedure that ‘parties must each file a financial affidavit,’ where the parties had already divided the property according to a marital settlement agreement, and neither party sought financial support from the other.”
Q: What happens if a financial affidavit is false?
According to Florida case law, submitting false information in a financial affidavit during divorce proceedings constitutes intrinsic fraud. In Wilkes v. Wilkes, the court explicitly identified this type of misconduct as intrinsic fraud, which undermines the integrity of the legal process.
Furthermore, in Cerniglia v. Cerniglia, the court held that there is no longer a strict one-year limit to challenge a judgment based on fraudulent financial affidavits, provided the final judgment was entered on or after January 1, 1992. This means a divorce case can potentially be reopened if one party proves the other submitted a fraudulent affidavit, even if this information does not come to light until several years later.
See: Wilkes v. Wilkes – 768 So.2d 1150 and Cerniglia v. Cerniglia – 655 So.2d 172
“Filing of a false financial affidavit in a dissolution of marriage case is intrinsic fraud.” – Wilkes v. Wilkes – 768 So.2d 1150
“Amended rule eliminating one-year limitation on ability to set aside judgment based on fraudulent financial affidavits in marital cases applies to all marital cases based on fraudulent financial affidavits in which the final judgment was entered on or after January 1, 1992.” – Cerniglia v. Cerniglia – 655 So.2d 172
Q: Are financial affidavits required for temporary support?
According to Florida case law, financial affidavits play a critical role in determining temporary support during divorce proceedings. In Cruse v. Cruse, the appellate court found that the trial court erred in awarding temporary support without properly weighing the financial affidavits submitted by both parties. The affidavits revealed that the wife was in a better financial position than the husband, which contradicted the court’s support award. This case underscores the importance of accurate financial disclosures in ensuring fair and legally sound temporary support decisions.
See: Cruse v. Cruse – 373 So.2d 440
“The financial affidavits filed in connection with the motion for temporary support indicate that the aggregate of the financial circumstances (net income, liquid assets, etc.) place the wife in a better position than the husband to assume these relatively large amounts of temporary awards. The lower court, accordingly, erred in awarding the wife temporary support, attorney’s fees and costs in the amounts required by the court’s order.”
Q: Can courts rely on outdated financial affidavits?
According to Florida case law, timely and up-to-date financial affidavits are essential for reliable decision-making in marriage dissolution cases. In Busto v. Arias, the court upheld the trial judge’s decision to rely on the wife’s more recent financial affidavit during the equitable distribution phase, rather than the husband’s affidavit filed nearly two years earlier. The case highlights the court’s discretion to give greater weight to current financial information, emphasizing that outdated affidavits may not accurately reflect the parties’ present financial circumstances.
See: Busto v. Arias – 406 So.3d 1019 and Harby v. Harby – 331 So. 3d 814
“While the trial court is constrained to ‘consider all the company’s assets and all its liabilities,’ id., it nonetheless possesses ‘broad discretion to fashion an equitable distribution scheme, as long as it supports its distribution with specific factual findings that are supported by competent, substantial evidence.'” – Harby v. Harby – 331 So. 3d 814
“At equitable distribution phase of marriage dissolution proceeding, trial court acted within its discretion in valuing marital home based on value averred in wife’s financial affidavit, even though husband submitted his own affidavit averring a higher value, where husband’s affidavit was filed nearly two years prior to judgment, wife’s affidavit was filed same year as judgment.” – Busto v. Arias – 406 So.3d 1019
Q: Do financial affidavits violate privacy rights?
According to Florida case law, the requirement to file financial affidavits in divorce proceedings involving permanent financial relief does not infringe on a party’s right to privacy. In Daniel v. Daniel, the court emphasized that understanding each party’s financial situation is essential for the court to make informed and equitable decisions regarding property division and financial obligations. Without full disclosure, the court cannot effectively administer justice in dissolution cases, making financial affidavits a vital part of the process.
Source: Daniel v. Daniel – 922 So.2d 1041
“The issue in this case is whether the trial court lawfully ordered the husband to file a financial affidavit in this non-simplified dissolution proceeding. We hold that the Family Law Rules of Procedure require the husband to file an affidavit and reject his argument that the order to do so violates his right of privacy.”
“Courts must first determine whether the individual possesses a legitimate expectation of privacy in the information or subject at issue. If so, then the burden shifts to the State to show that (a) there is a compelling state interest warranting the intrusion into the individual’s privacy and (b) the intrusion is accomplished by the least intrusive means. Legislation that infringes on the right to privacy will be invalidated unless it can survive the compelling state interest test.”
“(T)he husband’s expectation that he may avoid filing a financial affidavit in this divorce proceeding is not one that society is prepared to consider as reasonable. Florida’s right of privacy is not implicated in this case.”
Q: Can judgments be reversed for missing affidavits?
According to Florida case law, the absence of a required financial affidavit does not automatically warrant reversal of a judgment. In Vaccaro v. Vaccaro, the court held that to succeed on appeal, the appellant must show both that they were prejudiced by the other party’s failure to file the affidavit and that the monetary relief awarded is not supported by competent, substantial evidence. This standard ensures that procedural oversights only affect the outcome when they result in unfairness or an unjust decision.
Source: Vaccaro v. Vaccaro – 677 So.2d 918
“To obtain reversal of judgment that grants monetary relief in dissolution action if party awarded relief failed to file required financial affidavit, appellant must demonstrate that he was prejudiced by failure to file affidavit and that award is not supported by competent substantial evidence.”
Q: Are affidavits needed for attorney fee awards?
According to Florida case law, financial affidavits play a crucial role in determining whether an award of attorney fees is appropriate in divorce-related proceedings. In Bradham v. Bradham, the court upheld an award of attorney fees based on affidavits showing that the former wife had a monthly financial deficit while the former husband had a surplus. These affidavits provided the court with the necessary evidence to assess financial disparity and make an informed decision on fee contribution, reinforcing their importance in ensuring fairness.
Source: Bradham v. Bradham, 120 So.3d 1274, 1276
The evidence was sufficient to support the trial court’s finding, in proceedings on modification of alimony, that the former wife had a need for contribution to her attorney fees and costs and the former husband could pay.
“Here, the trial court’s order found that the former wife had a need for contribution to her attorney’s fees and costs and the former husband had an ability to pay. This finding is supported by the parties’ respective financial affidavits, which show the former husband with a monthly surplus, while the former wife carries a monthly deficit, in addition to being the primary residential parent for the two minor children. The former wife submitted an affidavit from her attorney’s law firm attesting to the fees and costs incurred by appellee in the case, as well as detailed records of the hourly rate and hours expended for her case.”
Q: Can courts impute income from affidavits?
According to Florida case law, trial courts have the discretion to impute income to a party based on their financial circumstances as reflected in affidavits and supporting evidence. In McCann v. Crumblish-McCann, the court upheld a decision to impute $1,000 per month to the husband due to his rent-free living at his mother’s home. This imputed income was factored into determining his monthly income and temporary alimony obligation. The case illustrates how courts may assign a monetary value to financial benefits that reduce living expenses when evaluating support responsibilities.
Source: McCann v. Crumblish-McCann – 21 So.3d 170
“The mother’s testimony that she was not charging anything for housing is sufficient evidence of ongoing free rent. The husband’s financial affidavit also listed his monthly rent expense as $1000. The record contains ample evidence to support the imputation of income.”
“Our review of the husband’s financial information establishes that even without the automobile payments, the husband, facing a $1500 per month temporary alimony payment, would still have a several-hundred-dollar monthly deficit. Thus, the temporary award exceeds his ability to pay. We reverse and remand with instructions to determine a reasonable amount of temporary support for the wife.”
Q: Are affidavits required if no financial relief is sought?
According to Florida case law, financial affidavits are only necessary in divorce proceedings when the court is asked to make decisions involving financial relief. In Salczman v. Joquiel, the court made clear that if no permanent financial relief—such as alimony, child support, or property division—is requested, then financial affidavits serve no purpose and are not required. This ensures that parties are not burdened with unnecessary disclosures when financial issues are not at stake in the case.
Source: Salczman v. Joquiel – 776 So.2d 986
“The language of Rule 12.285(d)(1) provides in relevant part that:
A party shall serve the following documents in any proceeding for an initial or supplemental request for permanent financial relief, including, but not limited to, a request for child support, alimony, equitable distribution of assets or debts, or attorneys’ fees, suit money, or costs:(1) A financial affidavit in substantial conformity with Family Law Form 12.901(d) …, which requirement cannot be waived by the parties. (emphasis added).
As we read the plain language of this rule, financial affidavits are required (and non-waivable by the parties) where there has been an initial or supplemental request for permanent financial relief. That is, under this rule, where a party seeks to have the court make an award of permanent financial relief such as child support, alimony, equitable distribution of assets or debts, etc., financial affidavits are mandatory. It stands to reason then, that if a court in a dissolution proceeding under this rule, is not being called upon to award any permanent financial relief to a party, financial affidavits are not required and are indeed wholly irrelevant to the proceeding.”
Accurate financial disclosure is a cornerstone of the divorce process in Florida, ensuring that decisions regarding alimony, child support, and property division are fair and equitable. By understanding the legal requirements and the importance of financial affidavits, you can navigate this critical aspect of your case with confidence. If you have questions or concerns about financial disclosure during your divorce, consulting an experienced family law attorney can help protect your rights and ensure compliance with Florida law.
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