Navigating Divorce and Taxes: Key Insights for Protecting Your Finances

Divorce is a unique process because it’s both deeply emotional and a formal legal procedure. This combination can feel strange for many of our clients; on one hand, it’s personal, yet on the other, it’s a highly structured legal matter.

One aspect of divorce that often feels odd is the discovery process. Discovery is essentially the exchange of information between the parties. You might have heard of depositions or interrogatories, and document exchanges—that’s all part of discovery. Since divorce is both an emotional and legal process, it’s essential to go through these steps to ensure that you have all the information needed to make the best decisions for yourself and your family.

In Connecticut divorces, there’s a range of discovery tools we use as family law attorneys. The most basic document in any Connecticut divorce is the financial affidavit. This is a ledger where you list your assets, liabilities, income, and expenses. It’s a snapshot of your financial life, and both parties provide it. Some items are joint, others are individual, but this affidavit is updated as the case progresses.

The next level is what we call 'mandatory discovery.' While it’s not strictly mandatory, if one party requests it, the other must comply without argument. This includes standard financial documents like bank statements, credit card statements, and tax returns, which help provide a clearer view of your financial life.

Beyond the basics, there are advanced discovery techniques, such as depositions and interrogatories. After reviewing the initial documents, we might have more specific questions, which lead to additional discovery. For example, we may depose a business evaluator or your spouse’s bookkeeper to understand cash flow in a business. This type of discovery is highly case-specific and unfolds as we gather more information about your situation.

A common question we get is about the scope of discovery. Discovery can cover any matter that needs to be resolved in a divorce. Frequently, this includes financial issues like income, assets, liabilities, and how bills are paid. Discovery may also address children's issues if there’s a conflict over parenting plans. This could involve gathering input from teachers, mental health professionals, or anyone who can provide insight into what might be in the best interest of the child.

Asking for extensive financial documentation can feel invasive, especially during such an emotional time. Some documents are mandatory, meaning that if one side requests them, the other side must provide them—like bank statements or tax returns for a specific period. In general, we advise our clients to comply with these requests and avoid unnecessary disputes, as the court will ultimately require these documents.

However, in high-conflict cases, one party might request items they aren’t entitled to. When this happens, it’s essential to work with an experienced attorney to ensure your rights are protected. In every Connecticut divorce, there’s some form of discovery involved. For most cases, discovery is straightforward and manageable. We strive to make the process as efficient and easy as possible for our clients, so we can gather and share information effectively.