Post-Decree Financial Disclosure: “Is it ever really over?”
By Beverly K. Dodge
Many people believe that when their divorce is final, they will never be required to undergo the kind of scrutiny of their financial affairs that occurred during the divorce process. For many this belief is untrue because child support awards can be reviewed and modified as long as any of the children are minors. Except in certain circumstances where the parties have agreed to deny a court authority to review spousal maintenance awards (known as “karon” waivers), these awards are also subject to review on an ongoing basis.
When one party in a divorce settlement asks for modification of a support order (child support or spousal maintenance), the financial affairs of both individuals are subject to scrutiny through a process called discovery. During discovery, information is gathered about the income, assets, resources, and needs of both parties, and the minor children. Either side may ask the other to answer written questions, called interrogatories, under oath. Either side may ask the other to produce certain documents, such as tax returns, paystubs, bank account records, and check book registers. And, either side may ask the other party, or any witness, questions under oath. This is called a deposition.
Usually these discovery techniques can only be used when a request for modification, known as a motion, is pending. However, when a child support order is in effect, Minnesota state statute also allows a party to request a copy of the other party’s most recent federal tax returns without having first initiated a court action. However, this request can be made only once every two years.
The information produced during discovery can be very revealing and can result in success or failure in the litigation process. Very often this information that most people believe is private and not subject to disclosure, paints a picture for the court that clearly contradicts what an individual would otherwise have the court believe.
Whatever the circumstance, no one who is a party to an action where there is an ongoing child support or spousal maintenance order should believe that his/her financial circumstances are private.
Beverly K. Dodge practices in the Family Law practice group at Barna, Guzy & Steffen. Contact her by calling 763-780-8500 with any questions regarding post-decree financial disclosure or any family matters.
