A Guide To Preparing And Completing The Dreaded “Financial Affidavit” In Illinois Divorce Cases

In Illinois, anyone going through a divorce is required by law to complete a financial affidavit as part of the legal process. Each spouse completes their own financial affidavit independently, utilizing all financial records and information available to them, electronically, in hard copy, by referencing tangible assets/things, or any other means available. The financial affidavit is critical because it ensures that both parties have a complete picture of all marital and non-marital assets, debt, and income. When it is utilized in court proceedings, it provides the court with a clear and comprehensive picture of the financial standing of the parties, which helps determine key issues such as spousal maintenance, child support, and the division of marital assets and debt. Properly preparing and completing your financial affidavit is essential to ensure accuracy and avoid delays or complications in your case. This guide will walk you through the steps to prepare and complete your financial affidavit effectively.

Understanding the Purpose of the Financial Affidavit

The financial affidavit is a document that details your income, expenses, assets, and debts. Accurately completing the financial affidavit must be taken very seriously. As provided on the first page of the form, it states that, “if you intentionally or recklessly enter inaccurate or misleading information on this form, you may face significant penalties and sanctions, including costs and attorney's fees.” It also provides at page 11 of the financial affidavit as a part of the signature box, that upon signing your financial affidavit, “under 735 ILCS 5/1-109, your signature means that: 1) everything in this document is true and correct, or (that you) have been informed or.. believe it to be true and correct, and 2) (you) understand that making a false statement on this form is perjury and has penalties provided by law.” [Among other things, 735 ILCS 5/1-109 states that, “(a)ny person who makes a false statement, material to the issue or point in question, which he does not believe to be true, in any pleading, affidavit or other document certified by such person in accordance with this Section shall be guilty of a Class 3 felony.”]

In Illinois, divorcing parties are required to use the standardized, Supreme Court approved form entitled “FINANCIAL AFFIDAVIT (FAMILY & DIVORCE CASES). This form is required to be used in all Illinois Circuit Courts. You can go to this link to find the PDF-fillable version of the required financial affidavit form, as well as instructions on completing the form and additional forms that may be utilized to accompany the financial affidavit.

Step 1: Gather Necessary Financial Documents

Before filling out the financial affidavit, collect all relevant financial records to ensure your information is accurate and complete. This preparation will save time and reduce stress. Key documents to gather include:

• Pay stubs for at least the last three months to verify your income.
• Tax returns (complete copies with all Forms and Schedules for both federal and state) for the past two to three years to provide a clear picture of your earnings.
• Bank statements (at least three months) for all checking, savings, and investment accounts to document your assets and cash flow.
• Credit card statements (at least three months) and loan documents to outline your debts.
• Bills and receipts for monthly expenses, such as rent or mortgage, utilities, insurance, and childcare.
• Retirement account statements (e.g., 401(k), IRA) to report savings and investments.
• Property records, including deeds or appraisals, to detail real estate holdings.

Organize these documents in a binder or digital folder for easy reference. Having everything at hand will make it easier to fill out the financial affidavit accurately.

Step 2: Understand the Affidavit Form

The Illinois financial affidavit form is divided into sections, each focusing on a specific aspect of your finances:

• Basic/Personal Information: Details like your name, address, and employment status.
• Employment/Business: Information on your present employment status, or if you are self-employed, basic information on that business.
• Income/Taxes: All sources of income, including wages, bonuses, self-employment income, investments, and benefits like Social Security.
• Maintenance/Child Support: If you are paying these sums relating to a previous relationship.
• Expenses: Monthly living expenses, such as housing, transportation, food, medical costs, and childcare.
• Debts: All liabilities, such as mortgages, car loans, credit card balances, and personal loans.
• Assets: Everything you own, including bank accounts, real estate, vehicles, and personal property. If an asset is non-marital, you can indicate that on the financial affidavit with “NM” or “non-marital”.

Reviewing the form in advance helps you understand what information is required and ensures you do not miss any details.

Step 3: Be Honest and Accurate

When completing the financial affidavit, honesty is critical. Inaccuracies or misrepresentations could result in penalties. If you are unsure about certain figures, such as irregular income or estimated expenses, provide a reasonable estimate based on your records and note on the financial affidavit that you are providing an estimate. Discrepancies between your financial affidavit and your spouse’s financial affidavit may raise red flags.

For example, when listing expenses, do not inflate or underestimate costs to sway the court’s decision. Instead, use your bank statements and receipts to calculate realistic averages. If your income fluctuates (e.g., due to commissions or freelance work), provide an annual average based on past tax returns or pay stubs and indicate on the financial affidavit that you did so to come up with your entry.

Step 4: Complete the Form Methodically

Work through each section of the affidavit systematically. Be sure to confirm when you are working through each section if the entries call for monthly or yearly amounts (e.g., income and expenses) or a total value (e.g., marital residence). Starting with income, list all sources and provide documentation as back-up. For expenses, categorize them as requested (e.g., housing, utilities, personal care). Be sure to double-check your math. When listing assets and debts, include an accurate description of the asset or debt, include the last 4 digits of any account numbers, and include the balances. If you co-own property or share debts with your spouse, note this clearly on the financial affidavit to avoid confusion.

If a section doesn’t apply to you (e.g., you have no retirement accounts), write “N/A” or “0” rather than leaving it blank. Incomplete forms can lead to misunderstandings.

Step 5: Review and Seek Professional Help if Needed

Once you have completed your financial affidavit, review it carefully for accuracy and completeness. Cross-reference your entries with your financial documents to ensure consistency. If you are unsure about any section or have a complex financial situation (e.g., business ownership or significant investments), it is highly recommended that you consult with your divorce attorney. They can help clarify tricky areas and ensure your financial affidavit aligns with Illinois law.

Step 6: Finalizing and Exchanging Financial Affidavits with Your Spouse

After completing your financial affidavit, it is important that you send it, along with all your corroborating financial documents, to your attorney for their review. They will request further input from you or request dialogue on any of the entries that are unclear, reveal new information to them, or require further elaboration as part of the financial affidavit. Once you and your attorney are satisfied that everything is complete and accurate, you will sign and date the financial affidavit. Then, your attorney will coordinate exchanging financial affidavit packets with your spouse’s attorney. Be sure to keep a copy of your completed financial affidavit packet for your records.

Tips for Success

• Start Early: Gathering documents and completing the affidavit can take time, so don’t wait until the last minute.
• Be Thorough: Omitting assets or debts can harm your credibility and affect the court’s rulings.
• Update as Needed: If your financial situation changes significantly during the divorce process, you may need to file an updated affidavit. Financial affidavits should be updated every three to four months while the divorce litigation is pending.
• Stay Organized: Keep all documents and a copy of your completed affidavit in a safe place for future reference.

Conclusion

Completing a financial affidavit in an Illinois divorce case may seem daunting, but with careful preparation and attention to detail, you can navigate the process successfully. By gathering the right documents, understanding the form, and being honest and thorough, you are contributing to providing a clear picture (along with your spouse’s financial affidavit) of your finances, both marital and non-marital, thereby paving the way for expeditious and equitable decisions to be made on support and/or division of the marital estate.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.