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example , if the client earns interest or dividends from a brokerage account , then list that income . Bonuses should be reported , as well . Even if bonus amounts and the timing of their receipt vary , they should be disclosed . If the amounts vary by year , and you are not sure how to determine an average , then footnote the annual amounts received for the last three to five years and indicate “ TBD ” in the column for the specific amount . By fully disclosing the amounts paid over the recent years , you have clearly attempted to be as transparent as possible .
In-Kind Income
Another error that we frequently encounter is inaccurately reporting expenses that are paid by someone other than the affiant , so-called “ in-kind income .” If another person is paying for electricity , for example , then the affiant should include the amount paid as an expense , but also report it as income . This is an example of an “ in-kind ” benefit / income . Any type of payment that reduces personal living expenses should be treated as income .
There are many common mistakes that are made in preparing financial affidavits . If you are not sure how something financial should be represented on the affidavit , research how best to present it . The financial affidavit is a critical aspect in every family law matter , and extreme care must be taken to ensure that the data on it is presented accurately . n
Author : Shannon Green – Westbay CPAs
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