Financial disclosures required at outset of divorce

Michigan Court Rule (MCR) 3.206 provides requirements for starting a domestic relations case, including the basics of what needs to be in the complaint, requesting spousal support, and providing a Verified Financial Information Form (VFIF). See MCR 3.206(C)(2).

The VFIF became required in divorce, separate maintenance and annulment cases in 2020, and is a sworn document created by the State Court Administrator’s Office (SCAO), form CC320. It requires parties to disclose personal information such as benefits from their employer, sources of income, real estate, financial accounts, retirement benefits, property, debts and more. Parties have 28 days after the defendant first responds to the complaint to serve the completed form on each other.

 

If parties agree (in writing, of course) to waive exchange of the form, or if they have an executed consent judgment, final order or settlement agreement when the case is filed, the VFIF is no longer required. For those impacted by domestic violence or assault, certain identifying information can be left out of the completed form, but you will be required to explain to the court why information was omitted.

 

Discovery is an integral part of litigating and finalizing the case – it’s rare that both parties know all the little details about their assets and debts. By requiring the VFIF to be exchanged at the outset of the case, both sides get a jump start on what needs to be explored deeper. Discovery can be extremely time consuming and costly for both sides, especially when one party has taken primary responsibility for paying bills, investing money or otherwise assumed financial control over the estate (whether agreed upon or not). The other side may be left in the dark, requiring more aggressive discovery tactics, more subpoenas, more interrogatories, more depositions. The VFIF helps reduce the amount of time and money needed to give both parties a full picture of the marital estate and resolve the matter.

 

Transparency is crucial to the court process, no matter what case is being heard. While some argue that transparency doesn’t exist within the judicial system, the VFIF attempts to combat that belief, setting the tone that full disclosure is not voluntary, but mandatory.