When going through a divorce, there are a few key documents that will set the tone for the entire process. One of the most important is your financial affidavit. It’s often the first official snapshot of your financial life, and it can make a significant difference in how your divorce unfolds.
In Illinois (where I practice), we call it a financial affidavit, but every state requires a similar document—sometimes referred to as a sworn financial statement or domestic relations affidavit. No matter what it’s called, this document serves the same essential purpose: to provide a clear and honest picture of your financial situation and to get a clear picture of your soon-to-be-ex’s financial picture.
Why the Financial Affidavit Matters
At its core, your financial affidavit is about sharing accurate, truthful information regarding your finances with your soon-to-be ex, their attorney, and potentially a mediator. Each spouse is required to complete one separately, and you swear under oath that the information is accurate.
This document becomes the foundation for many decisions in the divorce process. It can influence everything from spousal and child support to the division of assets. That’s why it’s crucial to approach it thoughtfully and thoroughly.
What’s Included in the Financial Affidavit?
Most financial affidavits are broken down into several sections. Here’s an overview of what to expect and how to handle each piece.
1. Income
This section asks for your income—not your spouse’s. If you’re a stay-at-home parent or not currently employed, this section may be simple. But if you have income, whether from employment, investments, or other sources, you’ll need to list it here.
2. Expenses
This section often causes the most stress because it asks for a breakdown of your monthly living expenses. Should you include just your expenses or joint household expenses? That depends on your situation and should be discussed with your attorney. Generally, you’ll focus on your personal expenses, but it gets tricky if you’re still sharing a household.
It’s especially important to accurately list expenses related to your children, as these can directly affect how costs are divided going forward.
Pro Tip: Don’t stress about getting expenses perfect down to the penny. Instead:
- Grab a cup of coffee (or tea!), print out the affidavit, and start filling it in with what you know.
- For estimates (like groceries), use your best judgment.
- For more precision, you can review your bank or credit card statements from the past 3-12 months.
Some of our clients use tools like Monarch Money to categorize expenses automatically, which makes the process much less overwhelming.
When you’re done listing expenses, step back and ask, “Does this make sense?” If your expenses total $20,000 a month and your household income is $40,000 a month, that’s a red flag to revisit the numbers.
3. Health Insurance
This section outlines details about your health insurance, including premiums and deductibles. You can often find premium details on a recent pay stub, or if you’re on Medicare, you’ll include those costs.
4. Assets and Debts
Here’s where you list everything you own and owe, from bank accounts and investments to mortgages and credit cards. The goal is to assign values as of a particular date—often the end of a month or quarter (March 31st, for example)—because that’s when most financial statements are generated.
Be sure to include:
- Cash accounts (checking, savings, money market)
- Investment accounts
- Retirement accounts
- Debts (mortgages, loans, credit cards)
You’ll need to disclose assets in your name, jointly owned assets, and sometimes even assets owned solely by your spouse (based on what you’re aware of). Your attorney can guide you through what’s necessary.
The Financial Affidavit Tells Your Story
While this document is factual, it’s also the first step in telling the financial story of your divorce. For example:
- If there’s a significant income gap between you and your spouse, the affidavit makes that clear.
- If you have high childcare expenses or unusual costs, this document highlights them.
- If your marital estate includes complex assets like businesses, restricted stock, or cryptocurrency, this is where you begin to lay out that complexity.
Add Footnotes—They Matter!
One strategy we always recommend is to include footnotes. They add clarity, answer potential questions before they’re asked, and make the information easier to understand for attorneys, mediators, and judges. For example:
- Explain where you got income figures (e.g., “Based on 2024 pay stub”).
- Indicate which expenses are estimates versus exact amounts.
- Clarify which assets are yours versus jointly owned or your spouse’s.
Final Thoughts
The financial affidavit is more than just paperwork—it’s a key part of your divorce strategy. It sets the tone for transparency, accuracy, and fairness. While it can feel daunting, you don’t have to navigate it alone. At Purposeful Wealth Advisors, we help women going through complex, high-asset divorces complete their affidavits thoughtfully and confidently.
Need support as you navigate the financial complexities of divorce?
At Purposeful Wealth Advisors, we help women make empowered, meaningful decisions about their money during and after divorce. Reach out for a complimentary 30-minute consultation today to learn how we can support your journey to a stronger, more confident future. purposefulwealthadvisors.com/contact/
