Financial Disclosure Section in SA form


#1

You should ask your attorney to explain this provision to you, as well as any others that you have questions about. Generally, a financial disclosure provision provides a mechanism for relief if the other spouse “hides” assets which are later discovered. Whether you want such a provision in your agreement depends on your circumstances.

David L. McGuire
Attorney
The Rosen Law Firm
4101 Lake Boone Trail, Suite 200
Raleigh, North Carolina 27607
NCdivorce.com
(919)787-6668

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#2

Hello,
We are about to sign our settlement agreement. The only question my husband’s lawyer has is the section called Financial Disclosure. My lawyer drew this up and I figured this section is considered standard. This is how it is stated:

"XI. FINANCIAL DISCLOSURE

Each party hereby represents and warrants to the other that there has been a full and voluntary disclosure of all assets, property, resources, financial circumstances and liabilities and acknowledge that this Agreement is specifically predicated upon and made subject to the accuracy of that information. If either Husband or Wife has failed to disclose the existence of or accurate information concerning any property, asset, resource or liability to the other, the party whose rights have been prejudiced by the non-disclosure or misrepresentation shall, at his or her election, be entitled to the following remedies in addition to those provided elsewhere in this Agreement and at law and in equity:

. To make application to the Court for an equitable distribution as provided under the laws of the State of North Carolina or any other appropriate jurisdiction; or

. To sue the other party for damages under this Agreement resulting from the non-disclosure or misrepresentation. If this alternative is elected, the aggrieved party shall be entitled to recover damages equal to 75% of the value of the asset which was not disclosed, based on the fair market value of the asset at the time of the parties separation or at the time the non-disclosure or misrepresentation is discovered, whichever is greater, plus 75% of all income or benefits paid on or accruing to that asset since the parties’ separation. In addition, the party whose rights are prejudiced by any non-disclosure or misrepresentation of assets, property, resources, financial circumstances or liabilities shall be entitled to recover reasonable attorneys fees and costs incurred in connection with proceedings to obtain relief as permitted herein."

I’d appreciate any input, if anyone else has a financial disclosure in their agreement. I assumed this was standard, since it was included in the agreement that was drawn up and surely appears to refer to both parties equally.

Thank you