Choosing economic mediation means you and your spouse decide to approach property division fairly and collaboratively. However, one of the biggest fears professionals face is discovering their spouse is hiding or failing to disclose assets and debts.
While having this fear is valid, a good mediation process can overcome distrust. Understanding divorce state requirements and your mediator’s role can help you see this option in a new light.
New Jersey’s legal requirement
In New Jersey, full financial disclosure is mandatory in divorce proceedings, including mediation. This provision aims to ensure honesty between parties and helps couples reach fair decisions based on accurate financial information.
You and your spouse must individually submit a Case Information Statement (CIS), which should contain detailed data about your finances. Without this step, the mediation should not conclude with a proper agreement.
Your mediator as the transparency expert
A skilled economic mediator maintains transparency during sessions. They also help you comply with state law by requesting financial documents, such as tax returns, bank statements and credit card reports. Ultimately, they ensure both parties follow suit by setting a firm timeline for the exchange of financial documents.
This methodical approach reduces the opportunities for intentional or unintentional omissions, forcing both parties to deal honestly with all financial realities.
The consequences of concealment
While the fear of dishonesty is real, the mediation process mitigates this by requiring full financial disclosure. But what happens when you or your spouse intentionally hides assets and debts? The courts can award a larger share of the marital estate to the honest spouse and impose penalties. This risk alone is a powerful deterrent to dishonesty.
To avoid these negative consequences and protect your financial security, you must review your financial documents carefully and assess whether you have correctly declared your finances. Seeking legal advice from a divorce attorney can help you confirm that your CIS is legally compliant.