What Is a Net Worth Statement?

Written by Yonatan Levoritz on March 5, 2025

If you are going through a divorce in New York, you must understand your financial situation when making major life decisions. A net worth statement is one of the most crucial documents in any legal or financial process. This is more than just numbers. It’s a snapshot of your financial health, showing you everything you have and owe.

At The Levoritz Law Firm, we know the stress this process can cause. Whether you are going through or preparing for divorce proceedings, dealing with asset division, or getting a handle on your finances, this guide will unravel the fundamentals of a net worth statement.

What Is a Statement of Net Worth?

A net worth statement is a formal document outlining an individual’s financial state. It typically includes all assets, liabilities, expenses, and income, providing a complete picture of someone’s financial standing.

This document is often needed for legal, business, or personal financial planning situations, such as applying for an award of legal fees (§12 CFR § 308.177). However, it is especially critical in New York divorce cases. This ensures full transparency and helps achieve fairness in financial dealings.

What Information Is Included in a Statement of Net Worth?

A net worth statement encompasses the following essential categories:

• Income: Regular income from work, investments, or any other sources.
• Assets: All owned properties like real estate, vehicles, savings accounts, stocks, jewelry, and other valuable possessions.
• Liabilities: Existing debts such as mortgages, credit card balances, personal loans, and debts to relatives or friends.
• Expenses: Monthly household expenses, childcare, insurance, travel, and other costs.
• Special Requests: This section may address any spousal or child support you receive or request.

Net Worth Statement in a NY Divorce

In New York, divorce cases generally require each party to file a statement of net worth. This document is essential to the process, ensuring full financial disclosure for decisions regarding:

• Dividing Marital Assets: The court uses this method to divide marital property fairly; it might consist of mutual residences, savings accounts, or collectively acquired assets.
• Spousal Maintenance (Alimony): The declaration establishes reasonable support for one spouse, considering income, expenditures, and quality of life.
• Child Support: For parents, the monetary information in this statement will largely determine child support payments.

It should be emphasized that the statement is a legally sanctioned affidavit, to tell the truth and ensure fairness in financial claims.

Why Is It Important That a Statement Is Complete and Accurate?

For a net worth statement, accuracy and completeness are critical. Here’s why:

• Legal Mandates: Providing false and/or misleading information is a crime (i.e., perjury), which can result in penalties and unfavorable decisions.
• Equitable Outcomes: This document is based on each choice, describing how assets, including spousal support, will be divided and distributed.
• Credibility in Court: Courts subject such statements to searching scrutiny.

It pays off to be thorough and collect good, complete information. This is not just a list of numbers. The building blocks are necessary to make fair financial decisions during legal proceedings.

How to Prepare a Statement of Net Worth

You may feel daunted when preparing a statement of net worth. However, when you break it down into steps, it becomes manageable. Here’s how:

1. Gather Personal Information: Gather basic information such as full names, Social Security numbers, dates of birth, and where the people reside.
2. Document Income Sources: Use recent pay stubs, tax returns (W-2 or 1099 forms), and other income records to outline your earnings details.
3. List All Assets: List everything you own: bank accounts, real estate, cars, jewelry, stocks, bonds, and retirement accounts. For items without exact values, make an estimate and update later as needed.
4. Detail Liabilities: List debts such as mortgages, credit card balances, student loans, or informal loans. Use the most recent statements to ensure accuracy.
5. Calculate Monthly Expenses: Referencing bank statements, itemize fixed or recurring expenses, including rent/mortgage, utilities, groceries, insurance, and childcare.
6. Include Special Requests: List any requests for financial support (spouse support, child support, etc.), if applicable, along with reasons.
7. Review and Submit: Be accurate and file on time to avoid a mess. A lawyer can help ensure it complies with legal standards.

Need Help with Your Net Worth Statement? Call the Best Divorce Lawyers in NYC

Preparing a net worth statement for divorce can be stressful. The Levoritz Law Firm is here to help. Our experienced New York divorce attorneys ensure your financial information is accurate, legally compliant, and represents your best interests. Contact us (718) 942-4004 for a consultation today.