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Decades Of Litigation Experience

STATEMENT OF NET WORTH

| Jun 28, 2021 | Firm News |

By Matt Cavallo, Esq.

New York Domestic Relations Law section 236(A)(2) states that “there shall be compulsory disclosure by both parties of their respective financial states,” and that “[a] sworn statement [of n]et worth shall be provided upon receipt of a notice in writing demanding the same.” Furthermore, New York Domestic Relations Law section 236(A)(2) also states that “[i]t shall include all income and assets of whatsoever kind and nature and wherever situated and shall include a list of all assets transferred in any manner during the preceding three years, or the length of the marriage, whichever is shorter . . . .”

The Statement of Net Worth (SNW) is a critical document in a matrimonial action that informs the adversary of the assets that are at play in the divorce action. Many divorce cases are settled, and an important aspect of a settlement agreemnt is that each side knows that they are agreeing to in terms of equitable distribution. A settlement agreement where the parties are not fully informed of the other spouse’s assets may ultimately be deemed invalid.

The SNW can be updated during the divorce action. Your most recent tax returns and W-2s should be attached to the SNW. In addition, you will also need to attach your retainer agreement to the SNW.

You and your attorney should carefully prepare the SNW. As stated before, the SNW is a critical document in matrimonial action.