Statements of Net Worth, Demystified
A Statement of Net Worth is a sworn financial disclosure form required in most New York divorce and family law matters. It provides a detailed snapshot of your financial life—showing what you own, what you owe, what you earn, and what you spend. Think of it as your personal balance sheet and budget combined, signed under oath.
For anyone navigating a divorce in New York City or White Plains, this document is one of the most important financial tools you’ll complete during the process. Whether you’re working through divorce mediation or a contested divorce in Manhattan, your Statement of Net Worth ensures transparency and helps set the foundation for a fair resolution.
What the Statement of Net Worth Includes
The Statement of Net Worth covers five main sections:
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Personal Information – Your name, address, occupation, dependents, and household composition.
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Income – All sources of income, including salary or wages (with pay stubs and W-2s attached), bonuses, commissions, business or self-employment income, as well as investment income, rental income, pensions, and dividends.
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Expenses – Monthly living expenses such as housing, utilities, food, childcare, transportation, insurance, and entertainment. It also includes annual or irregular costs like tuition, vacations, and taxes.
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Assets – Real estate, bank accounts, investments, retirement funds, vehicles, jewelry, and business interests, with current balances or fair market values.
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Liabilities – Mortgages, student loans, credit cards, taxes owed, or other financial obligations.
Why the Statement of Net Worth Matters
In a litigated divorce, this form must be filed with the court and signed under oath. In mediation or cooperative divorce, it’s often used voluntarily to ensure both parties are fully transparent.
It serves as the financial foundation for determining:
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Child support
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Spousal maintenance (alimony)
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Equitable distribution of marital property
It also helps clarify what is separate property versus marital property, reducing confusion and preventing future disputes. When both parties see the full financial picture, negotiations are grounded in facts rather than assumptions—building trust and promoting a fair, informed agreement.
Even when it’s not court-mandated, completing a Statement of Net Worth early in the mediation process can prevent delays and help both parties move forward more efficiently.
How to Complete Your Statement of Net Worth
Before you begin, gather the following documents:
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Pay stubs from the past three months
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Most recent tax return with all W-2s and 1099s
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Bank and credit card statements
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Retirement and investment account statements
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Mortgage or loan balances
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Monthly bills for housing, insurance, and utilities
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Documentation for large assets or debts (titles, appraisals, or loan contracts)
Having these on hand will make the process faster and more accurate.
Our Simplified Process
At Safdar Law & Mediation Group, we simplify the process by providing each client with a secure online link to our financial disclosure software. You’ll receive your own login credentials to enter your financial information at your own pace.
Once your entries are complete, our office will generate your Statement of Net Worth for review and notarization. This system ensures accuracy, privacy, and efficiency, eliminating the stress of manual paperwork while saving significant time in the document-gathering process.
Guidance from Talaiya Safdar, Esq.
“Be thorough, not perfect. The first draft of your Statement of Net Worth doesn’t need to be final—it’s normal to refine it as you gather more documents. Use current values, not guesses, and remember that this form is signed under oath. Honesty and detail go a long way in maintaining trust throughout your divorce or mediation process.”
— Talaiya Safdar, Esq., White Plains & Manhattan Divorce Mediator
Even in New York divorce mediation or collaborative divorce cases, where the court does not require this form, Attorney Safdar encourages every client to complete it. It is an essential tool for building trust, ensuring transparency, and reaching a fair, informed resolution—the cornerstone of successful mediation.
