A Financial Affidavit is a sworn statement that contains details about your income, assets, debts, expenses, and other financial obligations. Financial Affidavit forms are most commonly used during divorce proceedings to help the court calculate spousal or child support.
The financial details disclosed in a Financial Affidavit must be complete and accurate, or you risk being penalized for perjury.
What is a Financial Affidavit?
A financial affidavit is a legal document detailing the signer’s financial circumstances. Like other affidavits, a financial affidavit is a sworn statement. The signer affirms and represents the contents accurately representing their financial situation. Not all financial affidavits contain the same information.
Of course, depending on the purpose of the affidavit, more or less financial information may be required. Generally, income and revenue are considered essential when calculating a child support obligation, whereas expenses are usually not. Consequently, a financial affidavit in a child support proceeding may not require a detailed list of costs and debts.
On the other hand, bankruptcy looks at your entire financial situation and may require more information.
As a reference, financial affidavits are also referred to as:
- Financial Statement Affidavit
- Financial Disclosure Affidavit
- Financial Affidavit for Support
- Family Law Financial Affidavit
- Affidavit of Financial Information
- Confidential Financial Affidavit
- Affidavit of Financial Means
A financial affidavit will identify the following elements:
- Affiant: the person making the affidavit.
- Employer: the name and address of the person or company employing the affiant.
- Sources of income: all sources of income of the affiant, including; rental, investment, self-employment, unemployment, or disability income.
- Salary deductions: the monthly deductions from the affiant’s salary, including; federal income tax, social security, state income tax, medicare, health insurance, and more.
- Monthly expenses: the household expenses and liabilities for the affiant, specifically; mortgage payments, utilities, gas, automobile insurance, property taxes, rent, and more.
The information required varies slightly based on the reason for the affidavit and the jurisdiction.
When a Financial Affidavit is Needed
Because an affidavit is considered equivalent to sworn testimony, a financial affidavit may be used whenever testimony about financial circumstances is required. In other words, financial affidavits are generally required for things related to the judicial system. The courts rely on them as a substitute for live testimony.
The purpose of a financial affidavit is to provide the court with a snapshot of your current financial situation. The court then relies on this snapshot when making legal decisions about your future. The decision could be about child support, alimony, or the division of assets in a family law matter. The decision might be whether you qualify for free legal services in a criminal case.
Alternatively, a financial affidavit may be relied upon to determine whether to waive fees most people pay in the court system, such as filing fees, transcript fees, or experts.
If the court requires a financial affidavit, there is probably a reason behind it, so make sure you have one.
Consequences of Not Having a Financial Affidavit
Whenever a financial affidavit is requested, you should remember that the court needs this information to make a just and equitable decision. Without an affidavit, you risk opening yourself up to several issues. First, the court may require you to testify under oath. In this case, you would be expected to answer the very same questions the affidavit seeks to answer, such as:
- How much money do you make?
- Do you have any assets?
- Do you have any other sources of income or revenue?
- Are you receiving or paying child support or alimony?
- What are your expenses?
- What are your debts and other obligations?
Alternatively, not having an affidavit may result in not obtaining the service or relief you seek. Also, the failure to complete the requested affidavit may result in a court guessing your financial circumstances. This outcome rarely results in a decision in your favor.
Finally, suppose financial information is required in a situation such as determining how much you owe in child support. In that case, refusal to provide your financial circumstances could result in you being charged with contempt of court.
Any time the court inquires about your financial circumstances, your answers must be complete. An affidavit is the same as sworn testimony, meaning it is a commitment to tell the truth, and can result in perjury charges if it is proven you have lied.
Common Uses of a Financial Affidavit
Financial Affidavits can be used in various legal situations where a court needs to look into your finances to resolve a child support allocation, divorce settlement, and even some criminal cases.
- Family Law: The most common situations for a financial affidavit involve family law issues. For example, if you divorce, a financial affidavit provides you, your spouse, and the court with the necessary information. This allows you to negotiate with your spouse or give the court a clear picture of your financial circumstances to decide on appropriate property division, alimony, and child support. Even in child support cases where the parents were never married, courts rely on a financial affidavit to allocate each party’s financial responsibility to support a child.
- Bankruptcy: Financial affidavits may also be used in bankruptcy court. As with family law matters, courts review your assets and debts, income, and expenses, to determine the appropriate way to resolve a bankruptcy matter.
- Legal Aid: Finally, a financial affidavit may be required if you apply for the services of a public defender or legal aid. The United States Constitution guarantees legal representation in criminal cases, even if you can’t afford an attorney. In this situation, you may be asked to provide financial information to determine whether you qualify for an attorney paid for by the state or county where the alleged crime occurred.
What if I can’t afford the filing fees?
If you want to file a lawsuit but cannot afford the filing fees, you can file “in forma pauperis.” This filing tells the court you don’t have the financial means to pay for court fees such as filing fees, the cost of a transcript, or hiring an expert.
This can be done in civil and criminal matters, including state and federal court appeals. Your representation and a financial affidavit to support your position are reviewed to determine whether you meet local government guidelines for assistance.
How To Write a Financial Affidavit
Step 1 – Start with Affiant Information
The affiant is the person writing the affidavit. Include your contact information, such as your full name, date of birth, address, and social security number.
Step 2 – Add Income Information
If you are currently employed, provide details of your occupation:
- Whether it’s full-time or part-time
- Title of occupation
- Where you are employed
- Address of your employer
- Your pay rate
- How often do you get paid
Then detail any gross income you receive. This is income from any source before any taxes or deductions are taken out. Include any income outside of your current employment. Other sources of income include child support, alimony, social security, unemployment, rental income, etc.
Step 3 – Fill in Your Deductions
Your deductions are what’s taken from your gross income every month. These can include:
- Federal & state income tax
- Social security
- Medicare
- Health insurance
- Union dues
- Mandatory retirement contributions
- Child support
- Life insurance premiums (to secure child support)
- Alimony/spousal support
State the amount in the affidavit if you have any of these as deductions in your monthly income.
Once you have done this, note down your net income, which is the total income you take home after all deductions have been taken.
Step 4 – Note Down Your Expenses and Assets
Examples of monthly expenses include:
Household expenses such as:
- Rent or mortgage
- Real estate taxes
- Property or renter’s insurance
- Homeowner’s or condo dues
- Utilities
- Groceries
Transportation expenses such as:
- Car payment
- Gas
- Car insurance
- Maintenance and repairs
- Public transit
- Parking
Personal expenses such as:
- Insurance premiums
- Uninsured medical expenses
- Clothing
- Child care expenses
Loans and other debts such as:
- Student loan
- Car loan
- Credit card
Once you have added all your expenses, note the total in the affidavit.
Assets are anything you own that has a monetary value and can be converted to cash. Assets can include real estate, cars, stocks, businesses, bank accounts, etc. When it comes to assets, you should list them similarly to your expenses and include their total cash value.
Step 5 – Finish with Final Details
If you have any other financial information you would like to add, you can include that information in this section.
If there is nothing else, you can conclude the affidavit with a notary acknowledgment that verifies the document’s authenticity.
What Should Be Included in a Financial Affidavit?
As a preliminary matter, a financial affidavit includes personal information. This can include name, address, phone number, social security number, and date of birth. Depending on the purpose of the affidavit, it also asks for income, other sources of revenue, assets, debts, and expenses (detailed below). Additionally, because the form’s purpose is to provide the court with a picture of your financial circumstances, you can expect the form to sometimes ask about who else lives in the household and who you are financially responsible for. It may also ask for information about the income and obligations of others in the household, such as a spouse. Below is a non-exhaustive income, revenue, assets, debts, and expenses list.
| Category | Examples |
|---|---|
| Income | Salary; Hourly rate of pay; Commission; Overtime; Alimony; Tips; and Bonuses. |
| Other sources of revenue | Government assistance, such as food stamps; Rental income; Dividends; Pension; and Retirement income. |
| Assets | Home; Real estate; Family heirlooms; Electronics; Computer equipment; Musical instruments; Fur coats; Precious metals; Collections such as coin collections, stamp collections, or baseball cards; Jewelry; Vacation homes; Boats; Cars; Snowmobiles; Motorcycles; ATV’s; Motor home; Inheritance; Stocks; Bonds; Investment portfolios; Vacation time shares; Art; Antiques; and Other items of value. |
| Liabilities or debts | Loans; Second mortgages; Lines of credit; Personal loans owed to family or friends; Student loans; Credit card debt; Tax debts; and Judgments. |
| Expenses | Court ordered child support; Court ordered alimony; Bills associated with running a household. |
While the table above distinguishes between income and assets, not knowing whether something is an asset or payment is not as important as reporting the income or asset.
If you are unsure if something is a debt, expense, or income instead of an asset, list it somewhere. The court can figure it out.
The person detailing their financial information must sign the document before a notary public. A notary public must also sign the affidavit and affix their stamp. This act then notarizes the document.
Financial Affidavit Sample
Use our free templates (Word & PDF) to make a sworn statement about your financial situation.
To generate a custom form, you can also use our document builder to create your financial affidavit.
Financial Affidavit Frequently Asked Questions
I can’t afford the case filing fee to take someone to a small claims court. What should I do?
Each state has its list of information needed to assess financial assistance. You should search your state’s website. Locate their version of “In Forma Pauperis.” This document, properly filled out and filed with the court, initiates a court determination determining whether to waive court costs and fees.
If I’m required by the court to fill out a Financial Affidavit, do I have to be completely truthful about everything I own?
Yes. The financial affidavit is a legal document. In it, you swear the representations you make are true and correct. Consequently, lying or failing to disclose all your assets can result in perjury charges. Perjury carries both civil and criminal consequences.
I have criminal charges. How do I get an attorney?
Different jurisdictions approach this differently. However, to get a free or low-cost attorney, you must establish you qualify under the state or county’s guidelines. You can expect the court will ask about your financial circumstances.