How to Fill Out the Massachusetts Financial Statement in a Divorce or Custody Case
The Massachusetts financial statement is the most important form a parent in family court fills out. This cannot be stressed enough. It is the basis for all financial decisions including the division of assets and liabilities, the calculations for child support, financing of children’s college and other expenses, and the amount and duration of alimony, if applicable.
Currently, if your annual income is less than $75,000 before taxes, you are required to file a short form. If your income is more than $75,000 a year, you must file a long form.
Helpful considerations:
- Make sure your financial statement is as complete as possible. As stated above, it is the basis for all financial decisions including the division of assets and liabilities, the calculations for child support, financing of children’s college and other expenses, and the amount and duration of alimony, if applicable.
- Make sure your financial statement is accurate. Otherwise, it will impact your credibility with the court and open you up to a harsh cross-examination at trial.
- Indicate on the financial statement which expenses are estimated. If you never had any control over the family finances, it may be the case that almost all the listed expenses are estimated. Note this and be prepared to fully explain them at your deposition or trial.
- Be prepared for an intense focus on your expenses. Unfortunately, your personal life, through your expenses, are an open book for the other party to comb through and question. You could be subjected to endless hours of examination in depositions and at trial, often over miniscule expenses.
- Not all categories of expenses/income are listed on the online form provided by the Massachusetts Probate and Family Court. The form has spaces for weekly amounts of expenses and income, but the form does not include enough blank spaces for all potential items. Therefore, we have provided an excel spreadsheet version of the financial statement long form below, as well as links to several websites that give tips for preparing the financial statement. This excel version includes extra worksheets for you to list these additional weekly expenses/income, as well as an “explanatory notes” sheet. Explanatory notes are helpful for providing background and details of any income, expenses, assets or liabilities. The excel form automatically adds the totals for you, although you should double-check to make sure there are no errors.
- Savings can be included as an expense in some cases. The recent Massachusetts case of Openshaw v. Openshaw has established that savings can be included as an expense if “ongoing, regular saving was part of the couple’s standard of living during the long-term marriage.”
- There is an important distinction between actual expenses incurred during your marriage and the projected expenses necessary in your new household. MGL c. 208, § 53(b) states “the amount of alimony should generally not exceed the recipient’s need or 30 to 35% of the difference between the parties’ gross incomes established at the time of the order being issued.” It is well-established in case law that the standard to determine “need” and therefore the amount of support is the “marital lifestyle” maintained during the marriage. It is not your substandard post-separation lifestyle. As noted in Openshaw (p. 22), the wife’s artificially constrained spending for two years prior to the divorce was not a reliable proxy for the marital lifestyle enjoyed during the marriage.
- Make sure to include legal fees and the cost of GALS, parent coordinators, masters, and other third-party neutrals. The court’s financial statement form does not include the listing of retainers, legal fees, or amounts paid to “collaterals” in the divorce process. These “collaterals” include discovery masters or other special masters, guardians ad litem (GALs), supervised visitation costs, parenting coordinators (PCs), “reunification” or other court-ordered therapy, conciliators, mediators, etc. These additional costs are often considerable and should be listed in detail on your financial statement.
Click here to download our comprehensive and user-friendly Rule 401 Long Form (Excel Spreadsheet)
Click here to download a printable copy of all the information on this webpage.
Please note that the form and information on this webpage are not a substitute for professional legal, tax, or finance advice. See footer below.
Frequently Asked Questions:
(click on any question to expand)
The excel spreadsheet is the exact form provided by the Probate and Family Court. The only differences are that this excel version can be saved and it includes extra sheets (sheets 10-18) for Liabilities, Assets, Expenses, and Income (Expenses and Income totals feed into the “other” line item on the form); Schedule A (sheets 19-20); Schedule B (sheets 21-23) and a sheet for footnotes/explanatory notes (sheet 24).
The form is a locked spreadsheet, meaning you cannot change any categories. You can, however, add a footnote to the side of a number and then include the explanation on sheet 24. Also, you can SAVE the the form and update it later should you need to make changes.
Living expenses not deducted from pay can include, but are not limited to:
A. Household expenses
- Mortgage or rent
- Home equity, HELOC, second mortgage interest
- Property taxes
- Homeowners or condo association dues and assessments
- Homeowners or renters insurance
- Service contracts on appliances
- Parking
- Heating (gas or oil)
- Electric
- Cellphone/telephone (landline)
- Cable or satellite TV
- Home security
- Internet/streaming services
- Water, sewer,
- Garbage removal
- Yard work, pool, pest control
- Laundry and drycleaning
- Housecleaning service
- Necessary repairs and routine maintenance to my property
- Capital improvements/maintenance to property
- Pet care/supplies/boarding
- Household supplies
- Food (groceries)
- Food (dining out)
B. Transportation Expenses
- Car payment
- Repairs and maintenance
- Insurance, license, registration
- Gasoline
- Taxi, ride-share, bus, and train
- Parking and tolls
C. Personal Expenses
- Medical (out-of-pocket expenses)
- Doctor visits
- Therapy and counseling
- Dental and orthodontia
- Optical
- Medicine/vitamins/prescription drugs
- Clothing/shoes/accessories
- Cosmetics/toiletries
- Grooming (hair, nails, )
- Self-care
- Gym & club membership dues
- Entertainment
- Sports
- Hobbies
- Newspapers, books, magazines, and subscriptions
- Office supplies/postage
- Technology devices/equipment (maintenance or replacement )
- Online streaming services
- Gifts
- Charitable contributions
- Vacations
- Loan repayment
- Mandatory or voluntary union, trade or professional association dues
- Credit Union (loan/savings )
- Professional fees (accountants, tax preparers, attorneys)
- Education/continuing instruction
- Bank/credit card fees
- Savings
- Tax payments (state and federal payments not deducted from paycheck)
- Travel expenses for visitation
- Cash for miscellaneous
- Life insurance (not deducted from paycheck)
- Life (term)
- Life (whole or annuity)
D. Minor and dependent children expenses
- Clothing/shoes/accessories
- Grooming (hair, nails, etc.)
- Personal supplies (toiletries, skincare, makeup-children only)
- Education
- Tuition
- School/college application fees
- Books, fees, and supplies
- Dormitory furniture, fixtures and equipment
- School lunch
- Transportation
- School-sponsored trips and special events
- School clubs/ social memberships
- Uniforms
- Before and after-school care
- Tutoring, summer school, test preparation
- Medical (out-of-pocket expenses)
- Doctor visits
- Therapy and counseling
- Dental and orthodontia
- Optical
- Medicine/vitamins/prescription drugs
- Disability/complex medical related expenses
- Allowance
- Cellphone
- Childcare and sitters
- Extracurricular activities and sports (including equipment, uniforms, etc.)
- Art supplies, games, toys, electronics
- Summer and school-break camps
- Vacations/travel (children only)
- Taxi/ride-share/uber (children only)
- Entertainment, dining out, and hobbies (children only)
- Gifts children give to others
E. Court-ordered and other co-parenting costs
- Discovery Master
- Other Special Master
- GAL
- Supervised visits
- Reunification or other court-ordered therapy
- Parent Coordinator
- Child-centered apps
Gross (pre-tax) income figures are crucial to determining both child support and alimony awards.
The form for the financial statement specifies that it is income from “all sources.” These sources of income include at least the following, which are listed in the Child Support Guidelines, amended effective July 31, 2023:
- salaries, wages, overtime, and tips;
- income from self-employment;
- commissions;
- severance pay;
- royalties;
- bonuses;
- interest and dividends;
- income derived from business or partnerships;
- Social Security retirement and Social Security disability insurance (SSDI), excluding any benefit due to a child’s own disability;
- veterans’ benefits that are not based on a person’s financial circumstances;
- military pay and allowances, before allotments are deducted;
- insurance benefits, including those received for disability and personal injury, but excluding reimbursements for property losses;
- workers’ compensation;
- unemployment compensation;
- pensions;
- annuities;
- distributions and income from trusts;
- capital gains in real and personal property transactions to the extent that they represent a regular source of income;
- spousal support received from a person not a party to the order;
- contractual agreements;
- perquisites or in-kind compensation to the extent that they represent a regular source of income;
- unearned income of children, in the court’s discretion;
- income from life insurance or endowment contracts;
- income from interest in an estate, either directly or through a trust;
- lottery or gambling winnings received either in a lump sum or in the form of an annuity;
- prizes or awards;
- net rental income;
- funds received from earned income credit;
- income derived from stock options and similar incentives, excluding any income from the coverture portion allocated at the time of the divorce of the parties subject to the child support order; and
- any other form of income or compensation not specifically itemized above, including , but not limited to, alimony consistent with Calvin C. v. Amelia A. , 99 Mass. App. Ct. 714(2021).
A self-employed client must fill out Schedule A and attach it to the financial statement.
Note that income for support purposes may well be different from their taxable business income.
Other sources of income can be found on the following federal income tax return and schedules:
- Schedule B – Provides information relating to interest and dividend income
- Schedule D – Provides information regarding capital gains
- Schedule E – Provides information regarding supplemental income from rental properties and royalties, useful for completion of financial statement Schedule B
- Schedule F – Provides information regarding profits from farming
- Schedule K-1 – Provides information regarding shareholder’s income
Helpful resources to review:
MFAC’s report on Improving the Massachusetts Probate and Family Court Financial Statement:
In this report, we provide an analysis of the current required financial statement and provide recommendations to improve the financial statement, as well as a proposed financial statement.
For more information on filing financial statements, see the mass.gov website:
Instructions and information on the Long Form
For additional help, please see:
Mass Law Reform Institute: How to fill out a financial statement
Amherst Mediators: Tips for Preparing a Short Form Rule 401 Financial Statement-Frequently Asked Questions