How to Complete Your Massachusetts Financial Statement

How to Complete Your Massachusetts Financial Statement

If you are filing a 1B Contested Divorce Complaint in Massachusetts, the parties are required by the Massachusetts Rules of Domestic Procedure to provide the other party with an accurate financial statement within 45 days from the date of the service of the divorce summons. An updated financial statement will also need to be provided to the other party and filed with the court at certain points throughout the case, usually prior to any upcoming court hearings, such as motion hearings with financial issues and at the Pre-Trial Conference.

If you are filing a 1A Uncontested Joint Petition for Divorce, each party will also need to file a completed financial statement in order for the court to schedule an uncontested divorce hearing.

Although completing/updating your financial statement may be tedious, it is extremely important to your credibility in court that it is as accurate as possible. Assume that the opposing party or opposing counsel will cross-examine you about every number that you put on the financial statement. If you do not have an exact number for something, you must have a reason/explanation for how you arrived at the number that you put on your financial statement.

Here are the most important tips and instructions that I share with my own divorce clients when they are completing their financial statements:

• There are 2 versions of the financial statement—a short form and a long form. If you make under $75,000 per year (gross), you will complete the short version of the financial statement. If you make over $75,000 per year (gross), you will complete the long version of the financial statement.
• Use your paystub to help complete the income and deductions section of the financial statement.
• If you receive variable income such as overtime/tips/bonuses, etc., take the amount that you have earned to date so far this year and divide by the number of weeks that there have been so far to arrive at a weekly value.
• For expenses, you need to list the weekly cost. If you pay something monthly, divide that number by 4.3. Example: $500/month on groceries would be $116.28 per week ($500 divided by 4.3).
• If you only pay a portion of the expense (for example, if you split a bill with someone else), only list the amount that you personally pay.
• For assets, you need to list everything that has your name on it, even if it is held jointly with someone else, or if it is a life estate interest in a parent’s property.
• If an asset (or debt) is titled only in your spouse’s name, you do not need to list it on your financial statement.
• Include all the information requested on the form including the last 4 digits of account numbers, beneficiaries, dates, etc.
• Write “0” in any numerical field that you are not completing. Don’t leave it blank or the court will reject it.
• If you do not have an exact number for something, do your best to estimate and footnote that it is an estimated cost.
• Speaking of footnotes…footnotes are your friend! There is a sheet at the end called “explanatory notes” where you can add additional or clarifying information and details.
• If you are self-employed, you will need to complete Schedule A of the financial statement.
• If you own or have partial ownership interest in a business, that should be listed as an asset on your financial statement, even if the valuation is unknown (footnote this).
• If you receive rental income, you will need to complete a separate Schedule B of the financial statement for each rental property that you own.
• If you are completing the long form of the financial statement, you will need to sign it in the presence of the notary (most banks offer notary services).
• It can be helpful to attach a copy of a recent paystub or your most current W-2(s)/1099s to your financial statement.

Each financial statement that you complete and submit to the court should be based on your current financial circumstances. The financial statement is a snapshot in time. If you anticipate changes to your income or expenses in the near future, include the current values and add a footnote that these will be changing and why.

If you have additional questions about completing your financial statement, I am happy to help!
Please feel free to reach out to me through my Divorce Squad listing. In addition to full legal representation, my firm offers flat fee drafting services to assist you in completing your financial statement for court.