Analysis Of The New Mandatory Self-Disclosure Rule In Family Division

"Please Note: The Family Division Rule 1.25-A rule DID NOT take effect on April 1, 2011, as the court at the last minute postponed implementation. The date of implementation has not been decided yet. (Originally published in the New Hampshire Bar Journal, March 2011)" Effective April 1, 2011, new Family Division Rule 1.25-A will bring significant changes to the practice of family law in NH. Rule 1.25-A requires parties to produce financial information shortly after the commencement of a family court proceeding, without waiting for discovery requests to be propounded. The text of the new rule is as follows:

Rule 1.25-A Mandatory Initial Self Disclosure:

1. APPLICATION.

   This Mandatory Initial Self Disclosure Rule applies to all new actions in the family division for divorce, legal separation, annulment, or civil union dissolution. For parenting or child support petitions, or petitions to enforce or change court orders in parenting, divorce, legal separation, or civil union dissolution cases in the family division, sections B (1) (g) through (l) shall not apply.

   This rule applies to parties engaged in mediation or other alternative dispute resolution processes once the petition invoking court involvement has been served/delivered. Parties involved in alternative dispute resolution before filing are not bound by the rule until they initiate court action.

2. INITIAL DISCLOSURES.

   1. Except as otherwise agreed by the parties or ordered by the Court, each party shall deliver the following documents to the other no later than the earlier of (i) forty-five (45) days from the date of service/delivery of the petition or (ii) ten (10) days prior to the temporary hearing or initial hearing on the petition, not including the First Appearance required by rule 2.11:

      (a) A current financial affidavit in the format required by family division rule 2.16, including the monthly expense form.

      (b) The past three (3) years' personal and business federal and state income tax returns and partnership and corporate returns for any non-public entity in which either party has an interest, together with all tax return schedules, including but not limited to W-2s, 1099s, 1098s, K-1s, Schedule C, Schedule E and any other schedules filed with the IRS.

      (c) The four (4) most recent pay stubs (or equivalent documentation) from each current employer, and the year-end pay stub (or equivalent documentation) for the calendar year that concluded prior to the filing of the action.

      (d) For business owners or self-employed parties, all monthly, quarterly and year-to-date financial statements to include profit and loss, balance sheet and income statements for the year in which the action was filed; and all year- end financial statements for the calendar year that concluded prior to the filing of the action.

      (e) Documentation confirming the cost and status of enrollment of employer provided medical and dental insurance coverage for:

      i. The party, ii. The party's spouse, and iii. The party's dependent child(ren).

      (f) For the twelve (12) months prior to the filing of the action, any credit, loan and/or mortgage applications, or other sworn statement of assets and/or liabilities, prepared by or on behalf of either party.

      (g) For the twelve (12) months prior to the filing of the action, documentation related to employee benefits such as but not limited to stock options, retirement, pension, travel, housing, use of company car, mileage reimbursement, profit sharing, bonuses, commissions, membership dues, or any other payments to or on behalf of either party.

      (h) For the twelve (12) months prior to the filing of the action, statements for all bank accounts held in the name of either party individually or jointly, or any business owned by either party, or in the name of another person for the benefit of the either party, or held by either party for the benefit of the parties' minor child(ren).

      (i) For the twelve (12) months prior to the filing of the action, statements for all financial assets, including but not limited to all investment accounts, retirement accounts, securities, stocks, bonds, notes or obligations, certificates of deposit owned or held by either party or held by either party for the benefit of the parties' minor child(ren), 401K statements, individual retirement account (IRA) statements, and pension-plan statements.

      (j) For the twelve (12) months prior to the filing of the action, any and all life insurance declaration pages, beneficiary...