Establishing accurate financial information is an important aspect of divorce. This is especially true when it comes to proving income since income can directly impact matters such as alimony, child support and the division of assets.
In New Jersey, you can use many documents to demonstrate your income during divorce proceedings.
1. W-2 forms
In New Jersey, the median income is $89,703. Many people earning an income work for employers, and employers should provide W-2 forms annually. These forms detail earnings and tax withholdings. When navigating a divorce, presenting multiple years of W-2 forms can offer a comprehensive view of historical income, aiding in fair financial settlements.
2. Pay stubs
Current pay stubs are invaluable for showcasing recent income. These documents, issued with each paycheck, provide a detailed breakdown of earnings, deductions and other financial details. Pay stubs serve as real-time evidence.
3. Tax returns
Both federal and state tax returns are comprehensive documents that reveal various aspects of an individual’s financial situation. During a divorce, providing tax returns from multiple years can offer a more detailed perspective on income, helping in the fair division of assets and the establishment of alimony or child support payments.
4. Business records for self-employed individuals
For those who are self-employed, business records become important proof of income. Profit and loss statements, business tax returns and bank statements related to the business can all contribute to a thorough understanding of the individual’s financial status.
5. Bank statements
Bank statements provide a transparent view of financial transactions, including deposits, withdrawals and any additional income sources. Furnishing several months’ worth of bank statements can contribute to a more detailed financial profile during divorce proceedings.
6. Documentation for additional income
If either party receives additional income sources such as rental income, dividends or bonuses, providing relevant documentation is necessary. Lease agreements, dividend statements or records of irregular income sources can all contribute to an accurate assessment of overall financial health.
A combination of these accepted proof-of-income documents ensures a fair and just resolution, helping both parties move forward with a clearer understanding of their financial standing.