A Family Law Attorney’s Guide to the Financial Affidavit
One of the most important documents in any case is the Financial Affidavit. In that pleading, the petitioner is swearing not only to their monthly income, but also their monthly expenses, assets and liabilities. In my practice, I have reviewed countless Financial Affidavits, and there is a consistent error that plagues far too many of them. Too many financial affidavits calculate monthly income and expenses incorrectly by calculating income or expenses based on four weeks in a month. As there are 52 weeks a year and 12 months so each month averages 4.33333 weeks. The only time 4 weeks is correct is for February, but that is only in three out of four years.
To properly calculate a monthly amount, use the formulas below.
Amount x 52 weeks = a yearly amount then divide by 12 months
Example: daycare is $130 per week
$130 x 52 = 6,760
6,760 / 12 = $ 563.33 per month
Amount x 26 weeks = a yearly amount then divide by 12 months
Example: Bob is paid $1,000 bi-weekly
1,000 x 26 = $26,000 a year
$26,000 / 12 = 2,166.67 a month
Amount x 2 = for a monthly amount
Amount x 24 = a yearly amount then divide by 12 to get a monthly amount
Example: Susan is paid $2,000 twice a month
2,000 x 24 = 48,000 a year
$48,000 / 12 = 4,000 or $2,000 x 2 = $4,000
Amount per hour x hours per week worked = weekly amount x 52 = yearly amount
Yearly amount/ 12 to determine monthly amount
Example imputation at minimum wage of $8.10 an hour
8.10 x 40 = $324 per week
$324 x 52 = $16,848 per year
$16,848 / 12 = $1,404 per month
Using these equations, you can convert any amount to a monthly amount and avoid the possibility of having an incorrect figure on your Financial Affidavit due to a basic error.
Should you have further questions regarding the Financial Affidavit, we would be happy to provide a referral for a trusted Financial Advisor.
To speak with one of our Family Law Attorneys, contact us today. As an essential business, we remain open to serve your Family Law needs.
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