This sixth installment of a 7-part series about Domestic Partnership Agreements discusses financial disclosures and privacy.
To avoid later attack on the domestic partnership agreement, the partners should make fair and reasonable financial disclosures to each other.
Disclosures to Consider
For Florida “family law matters” (which Florida Family Law Rule of Procedure 12.010 defines broadly) such as divorce, Florida Family Law Rule of Procedure 12.285 mandates extensive financial disclosures.
“Family law matters” includes matters arising from support unconnected with dissolution of marriage and declaratory actions related to premarital agreements. The list below includes items modified from the list that the Florida Supreme Court approved on November 12, 2020.
Before domestic partners sign their agreement, each should consider disclosing:
- Trusts and all trust amendments for any trust of which either party is a beneficiary or may be in the class of beneficiaries or for which either party is a trustee.
- Documents sufficient to show each party’s ownership interest in any corporation, limited liability company, professional association, partnership, family limited partnership, joint venture, franchise, or other entity.
- Buy-sell or other agreements between or among either party and other owners of any business or family entity.
- Documents sufficient to reflect each party’s ownership of any tangible and intangible personal property, including vehicles, intellectual property (patents, trademarks), deferred compensation (such as stock options, restricted stock units), furniture and furnishings, collections, equipment, or contracts.
- Complete federal and state personal income tax returns, gift tax returns, and foreign tax returns for the past 3 years. Include all attachments, Forms W-2, 1099, K-1, and all schedules and worksheets comprising the entire tax return.
- IRS forms W-2, 1099, and K-1 for the past year, if the income tax return for that year hasn’t been prepared and for the prior 2 years beyond the past year, if the return hasn’t been filed for those years.
- Pay stubs or other evidence of earned income for the past 6 months.
- For the past 24 months, all loan applications, financial statements, and credit reports.
- Deeds evidencing ownership in property held during the last 3 years.
- Promissory notes or other documents evidencing money owed in the last 24 months.
- Leases for property on which the party is receiving or has received payments in the last 3 years or in which the party owns or owned an interest.
- Statements for the last 12 months for all checking and other bank accounts. Accounts include held in the party’s name individually, jointly with any other person or entity, as trustee or guardian for a party or a minor or adult dependent child, or in someone else’s name on the party’s behalf.
- Brokerage account statements held within the last 12 months.
- The most recent statement and statements for the past 12 months for any profit sharing, retirement, deferred compensation, or pension plan. Examples are IRAs, 401(k)s, 403(b)s, SEPs, KEOGHs, or other similar accounts.
- The most recent statement and statements for the past 12 months for any virtual currency transactions in which the party participated or holds an interest.
- The declarations page, the last periodic statement, statements for the past 12 months. Include the certificate for all life insurance policies insuring the party’s life.
- Current health and dental insurance cards covering the parties or their dependent children.
- If the party has an ownership or interest in a corporation, partnership, or trust, corporate, partnership, and trust tax returns for the last 3 tax years.
- Promissory notes evidencing debt for the last 24 months, whether since paid or not, and all credit card and charge account statements.
- Present lease agreements.
- Written premarital or marital agreements (or domestic partnership agreements) entered into at any time between the parties.
- Any court orders directing a party to pay or receive spousal or child support.
Confidentiality and Nondisclosure Protections
Domestic partnership agreements may provide for protecting the privacy and confidentiality of private financial information. Such information may include private family business information or trade secrets. Parties may agree to limit who may access confidential information. They may agree not to file confidential information in any future court action. They may agree to invoke court rules for sealing confidential documents being filed in court.
Agreed Dispute Resolution: Collaborative Process
They may agree to resolve future disputes through the collaborative process. The collaborative process enables out-of-court resolution of disputes with a team. The collaborative team includes a lawyer for each party, a neutral financial person, and a neutral mental health professional.
Read more about Florida Domestic Partnership Agreements: