What does full financial disclosure mean for divorce mediation?

Many splitting couples use divorce mediation in Connecticut. Its advantages include empowerment, less conflict and a faster resolution.

Full financial disclosure is an important aspect of divorce mediation.

Transparency and fairness

Full financial disclosure means both spouses provide comprehensive information on their financial assets, liabilities, income and expenses. Financial assets could include real estate, bank accounts and vehicles.

Common liabilities are mortgages, credit card debts and tax obligations. For example, in 2023, the average credit card balance in Connecticut was $7,381. Types of income include salaries, self-employment income, investment capital gains and rental income.

By sharing all financial information, couples ensure that each party has a clear understanding of the marital estate. This enables them to negotiate and make decisions based on accurate and equitable knowledge. It promotes fairness in the division of assets and liabilities.

Smoother path forward

With full financial disclosure, spouses have access to information necessary for informed decisions about property division, spousal support and child support.

On the other hand, the failure to share financial information fully can lead to misunderstandings and disputes down the line. By providing comprehensive disclosure upfront, couples mitigate the risk of future conflicts and litigation. This saves time, money and emotional strain.

Legal requirements

In Connecticut, divorcing couples must fully disclose their finances as part of the mediation process. Failure to do so can result in legal consequences and invalidate any agreements reached during mediation.

Confidentiality

With full financial disclosure comes the need to maintain confidentiality throughout the mediation process. Spouses must follow confidentiality agreements to protect sensitive financial information and foster a safe environment for negotiation.

By openly sharing financial information, couples can navigate the divorce process with integrity and efficiency.