Exchanging a Statement of Net Worth in a Divorce

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Exchanging a Statement of Net Worth in a Divorce

Exchanging a Statement of Net Worth in a Divorce by Deborah E. KaminetzkyIn the divorce process, whether mediated or litigated, one of the most important documents is the statement of net worth. It is a document that outlines the financial health of each party.

There are several sections. One section outlines the family data and budget such as how many children are in the home, dates of birth of both parties and the children, occupations and employers. Another section deals with income from all sources, jobs, investments, even disability or pension benefits. Yet another section contains information regarding assets such as cash accounts, real estate, vehicles, jewelry, art and life insurance. Finally, there is a section on liabilities such as credit card debts, loans, mortgages, back taxes and other assorted debts.

From all of this information, the net worth is calculated. Then the document continues to have sections on legal and expert fees already paid for and how much more is anticipated. Should either party have other relevant information, it can be noted toward the end. The document is signed by the party, notarized, and if attorneys are being utilized, the attorney for each party must certify that to the best of their knowledge the document paints a true and correct picture of the financial situation of the client.

The statement of net worth is supposed to have attachments added to it, such as recent W-2 forms or Schedule K forms and tax returns. Often parties will exchange the statement of net worth shortly before or at a meeting known as a “four-way,” where the parties and their respective attorneys meet to try to negotiate a settlement. The statement of net worth is important in deciding the issues of child support, maintenance and equitable distribution. The document provides enough information to be able to predict the likely outcome in court with enough accuracy that the parties can save a significant amount of money and time, not to mention stress, by agreeing to a settlement.

Deborah E. Kaminetzky

 

Deborah E. Kaminetzky, Esq.
Kaminetzky Law & Mediation, P.C.
132 Spruce Street
Cedarhurst, New York 11516
Phone: 516.374.0074

By | 2018-01-05T12:57:13+00:00 October 5th, 2017|Divorce Law, Mediation|Comments Off on Exchanging a Statement of Net Worth in a Divorce

About the Author:

Deborah E. Kaminetzky is the founding member of Kaminetzky Law & Mediation, P.C. located in Cedarhurst and Garden City, New York. Prior to starting the firm Deborah worked at a Long Island firm where she learned the practice of Matrimonial and Family law and Estate Planning. Deborah has also worked at the New York City Department of Consumer Affairs where she was responsible for prosecuting unlicensed home improvement contractors and negotiating settlements for consumers. Prior to practicing law, Ms. Kaminetzky was the president of a commercial property management corporation in the New York Metro area. Ms. Kaminetzky is a member of the American Bar Association (General Practice, Solo and Small firm Division and Law Practice Management Sections), National Association of Divorce Professionals, New York State Council on Divorce Mediation, Family and Divorce Mediation Council of Greater New York, New York State Bar Association (Business Law, Estate, Family Law, ADR and General Practice Sections), Nassau County Bar Association (where she serves as Vice Chair of the General, Solo and Practice Management Committee, and is active in the Community Relations and Education Committee) and The Nassau County Women’s Bar Association. Ms. Kaminetzky was appointed to the Committee on Law Practice Management of the New York State Bar Association in 2015 and has been a frequent speaker and author of articles for their journal. Ms. Kaminetzky serves on the Board of Directors of the Yashar Attorney and Judges Chapter of Hadassah as a their Treasurer, and was their Woman of the Year 2012. Deborah graduated from New York Law School in 1991 and the University of Michigan, Ann Arbor in 1986. Ms. Kaminetzky was admitted to the First Department in 1991 and the United States Supreme Court Bar in February of 2015. Deborah is on the Matrimonial fee dispute arbitration panel for Nassau County. She expanded her alternative dispute resolution practice by completing a Mediation certificate program in December of 2013, an advanced Mediation certificate program in 2015 and most recently a Divorce Mediation certificate in early 2016 from The New York Peace Institute. Ms. Kaminetzky has spoken to various groups on topics including matrimonial law, technology and social media use, and disaster preparedness for business including cybersecurity.