Legal Definitions - income-and-expense declaration

An income-and-expense declaration is a formal document used in family law cases, particularly those involving financial support for children or former spouses. It provides a comprehensive and detailed snapshot of an individual's financial situation. This declaration typically includes information about all sources of income, a list of assets (what a person owns), a breakdown of monthly expenses, and any outstanding debts or liabilities (what a person owes). Courts require this document to gather essential financial information from each party, enabling them to make fair and informed decisions regarding financial obligations.

Here are some examples of when an income-and-expense declaration would be used:

• Initial Child Support Determination: When a couple with children is going through a divorce or separation, the court needs to establish a child support order. Both parents would be required to complete an income-and-expense declaration. These documents would detail each parent's salary, other income sources, monthly bills (like rent, utilities, and groceries), and any significant assets or debts. This allows the judge to understand the financial capacity and needs of both parents, ensuring that the child support order is equitable and meets the children's best interests.

• Request for Spousal Support (Alimony): In a divorce case where one spouse is seeking financial support from the other (often called alimony or spousal support), both parties must submit an income-and-expense declaration. For example, if one spouse stayed home to raise children for many years and now has limited earning potential, their declaration would show their current low income and their necessary living expenses. The other spouse's declaration would show their higher income and financial resources. The court uses these declarations to assess the requesting spouse's need and the other spouse's ability to pay, helping to determine if spousal support is appropriate and, if so, the amount and duration.

• Modification of an Existing Support Order: Life circumstances can change significantly after a divorce or support order is issued. For instance, if a parent paying child support loses their job or experiences a substantial decrease in income, they might file a motion to modify the existing support order. To support this request, they would file a new income-and-expense declaration. This document would clearly show their current reduced income, any new expenses related to their changed circumstances (e.g., job search costs), and how their overall financial picture has been impacted, demonstrating to the court why a modification is necessary.