What is a Financial Information Statement?
A Financial Information Statement is a court-required document for nearly all temporary orders hearings and final trials in Texas divorce cases. Here is a sample Financial Information Statement so you have an idea of what they look like. The names and details used are all fictional, although the facts used are relatively typical of the issues dealt with in a Texas divorce. The sample document is based on a husband who expects to move out of the residence and pay child support. In a real case both sides prepare and submit a Financial Information Statement to the court prior to a temporary orders hearing.
What is the Purpose of a Financial Information Statement in a Divorce?
Essentially this document shows to the court the gross and net income of each party as well as a list of the necessary expenses of the party preparing the Financial Information Statement. When I sit down with a client to prepare this document it is often the first time they have given much thought to what their resources are and what they will need post-separation. Obviously, the financial and cash flow issues in a divorce case are extremely important and need to be evaluated early on in the case.
The Financial Information Statement document is extremely important for helping the court (as well as your lawyer) evaluate the financial issues in the case. Assuming there are not large discrepancies between the numbers on each party’s Financial Information Statement, the decisions in a temporary orders hearing are largely decided by the evidence in each party’s Financial Information Statement.
What are the Pitfalls in Preparing Your Financial Information Statement?
In preparing the Financial Information Statement clients sometimes tend to underestimate their expenditures and give “low ball” expense numbers. Maybe this is because they are embarrassed and they give what they think the number should be, rather than what it actually is. It is important that you give accurate numbers in order to get the result you need. For example, if you typically spend $1000 per month for groceries based on your actual past history, then this is the number you should use for the Financial Information Statement. If instead you put $400 because that seems like a more reasonable number, you’re very likely to have financial trouble as the case progresses because you underestimated your actual expenses and don’t have enough coming in to cover everything. So try to be as accurate as possible in preparing your Financial Information Statement.
Of course the specifics of each individual case are unique and you should discuss with your attorney the preparation and use of the Financial Information Statement.
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My ex earns a lot more than me, but I’ve been told that I may owe him some through our marriage. This all doesn’t make a lot of sense to me, but I will definitely have to give you all a call. I’m hoping I was just misinformed. I appreciate the info here, though. It’s a good start.
I wasn’t quite sure what the financial information statement was, but I looked at the link in the article and it doesn’t seem so complicated… or at least, not any more than taxes would be. Thank you for putting up this information, Scott.
Your welcome Laila!
Figuring out the financial forms was surprisingly a breeze. Your site helped steer me in the right direction. I just hope this next year — or however long it takes to end this marriage — is swift and painless. For him too. Sort of. Haha!
Glad to help Nancy!