| | | The Financial Affidavit
by Freda Brown, EA, CDFA, CDS
Page 1 of 5
The Financial Affidavit is the foundation from which all divorce settlements are built. The Financial Affidavit is used to determine child support, spousal support (also called alimony), and the separation of assets and liabilities to reach equitable settlements.
In Massachusetts, this form wants to know your weekly income, weekly deductions from salary, weekly expenses, lawyer fees, and assets and liabilities.
What is weekly income? Is it what you earned this week? Is it okay just to pull out your pay stub this week and copy down those numbers? Maybe! Do you receive exactly the same paycheck every week for 52 weeks? If you can answer yes to that, then there is a good chance that information might be right. However, if your paycheck varies during the year, you need to look a little further for information. Some factors to consider - do you work different hours each week? work overtime? get bonuses? do seasonal work? collect unemployment part of the year? get tips? Self-employed? If you are just looking at your pay stub and are in some of the above situations you may be under reporting or over reporting your income. Take the case of the union carpenter who works a job for 5 to 20 weeks, gets some overtime, and when the job is finished collects unemployment until the next job begins. When filling out his financial Affidavit, he used this week’s pay stub. Multiplying that number by 52 weeks showed he was earning $65,000 a year which was not a true figure. He actually grossed about $45,000. Or the seasonal bartender at the Cape who works the tourist months and collects unemployment the rest of the year. She listed her weekly income as the amount she received this week for unemployment. Certainly that multiplied by 52 weeks is understating her income. What if you work on commission? Or you are self-employed? You need to find an AVERAGE WEEKLY INCOME. Take the previous 52 weeks and get your average.
Page 2
|
|
