In a Florida dissolution of marriage action, otherwise known as a divorce, and some other family law proceedings, there is a court rule that directs the parties to disclose specific financial information in compliance with detailed content and procedural requirements. This rule is identified as Florida Family Law Rules of Procedure 12.285. This rule was recently amended and the changes to the rule increases the time period for which various documents must be produced and it provides greater specifications and expansion of the types of documents litigants are required to produce. Below is a brief synopsis of some of the most important changes made as of January 1, 2021.
Disclosure Requirements for Temporary Relief:
- As to a party who is seeking relief, instead of producing the required documents WITH the notice of hearing, the rule has changed to require the documents be produced ten days prior to the temporary hearing.
- The responding party, if not otherwise seeking relief, must produce the required documents on the party seeking relief on or before 5:00 p.m., 2 business days before the day of the temporary hearing if served by delivery or 7 days before the day of the temporary hearing if served by mail or e-mail.
- A responding party must be given no less than 12 days to serve the documents required under this rule, unless otherwise ordered by the court.
- If the 45-day period for exchange of documents provided for in subdivision (b)(2) (initial and supplemental proceedings) will occur before the expiration of the 12 days, the provisions of subdivision (b)(2) control.
- A responding party must be given no less than 12 days to serve the documents required under this rule, unless otherwise ordered by the court.
- A party is required to produce three (3) years of complete federal and state personal income tax returns, gift tax returns, and foreign tax returns filed by the party or on the party’s behalf. The old rule required one (1) year of taxes.
- A party is now required to produce up to two (2) years of W-2, 1099 or K-1 if prior year taxes have not been filed.
- A party is now required to produce six (6) months of paystubs or evidence of income instead of the three (3) previously required.
Disclosure for Initial or Supplemental Relief (this is in addition to the requirements for Temporary Relief – all of which are required in Initial and Supplemental Relief proceedings):
- A party is now required to produce up to two (2) years of W-2, 1099 or K-1 if prior year taxes have not been filed.
- A party is now required to produce six (6) months of paystubs or evidence of income instead of the three (3) previously required.
- A party is now required to produce all loan applications, financial statements, credit reports, or any other form of financial disclosure, including financial aid forms, prepared or used within the twenty-four (24) months instead of twelve (12) months.
- A party is now required to produce all deeds evidencing any ownership interest in property held at any time during the past three (3) years instead of one (1) year.
- A party is now required to produce all promissory notes or other documents evidencing money owed to either party at any time within the past twenty-four (24) months instead of the past twelve (12) months.
- A party is now required to produce twelve (12) months of financial accounts (savings, checking, money market, CD’s, etc.) instead of three (3) months.
- A party is now required to produce the most recent statement and statements for the past twelve (12) months instead of simply the most recent statement for any profit sharing, retirement, deferred compensation, or pension plan (for example, IRA, 401(k), 403(b), SEP, KEOGH, or other similar accounts).
- A section was added that now required a party to produce twelve (12) months of any and all virtual currency transactions in which a party has participated.
- A party must include a list of all current holdings of virtual currency.
- It is now required to provide statements for the past twelve (12) months of any life insurance policies insuring the party’s life or the life of the party’s spouse.
- Reduced the requirement to produce corporate tax returns from thirty (30) percent ownership interest to any ownership at all.
- Increased the requirement to produce three (3) years instead of one (1) year worth of corporate tax returns.
- Increased from twelve (12) months to twenty (24) months the requirement to produce all promissory notes evidencing a party’s indebtedness, whether since paid or not, all credit card and charge account statements and other records showing the party’s indebtedness as of the date of the filing of the action.
This is not a comprehensive list of changes and any party who is going through a divorce should consult with an attorney as to their obligations under the rule. Locating and organizing many of these documents will be challenging for most parties – after all, the stress of a divorce is not a light one; however, by being informed of what will be necessary, you can better prepare prior to filing for a divorce.
This article is for general information only and is not intended as and does not constitute legal advice or solicitation of a prospective client. It should not be relied on for legal advice in any particular factual circumstance.
