If you’re involved in a divorce or legal separation in California, you’re required to complete and exchange various financial disclosure forms. These forms ensure both parties are honest and transparent about their finances.
California family law views marriage as a financial partnership, and the only way to divide that partnership fairly is to understand what each person owns and owes.
Your financial disclosure forms can play a central role in decisions about property division, spousal support, child support, and attorney’s fees. If one side tries to hide income, debt, or assets, the other side could end up with an unfair outcome. The law tries to prevent that by making financial disclosure a required step in every case.
What’s Included in a Financial Disclosure Form?
California’s financial disclosure system includes several separate forms, each of which helps paint a full picture of your financial situation.
These forms typically include:
- Income and Expense Declaration (Form FL-150): Lists your monthly income, regular expenses, and employment details.
- Schedule of Assets and Debts (Form FL-142): Discloses everything you own and owe, from checking accounts and cars to mortgages and credit cards.
- Declaration of Disclosure (Form FL-140): Confirms that you’ve exchanged financial information with the other party.
- Property Declaration (Form FL-160): Used if you want to list community and separate property in greater detail.
Together, these forms give the court and your spouse a complete view of your finances. They should be filled out carefully and supported by documentation such as pay stubs, tax returns, mortgage statements, and retirement account summaries.
When Do You Need to File Your Financial Disclosure Forms?
California family law requires both preliminary and final disclosures in most divorce and legal separation cases.
- Preliminary disclosures are exchanged early in the case, generally within 60 days of filing the petition or response. They help both sides understand the financial landscape before negotiations begin.
- Final disclosures happen later, just before trial or final settlement. These forms update any changes in income, expenses, or asset values.
If both spouses agree and have already settled the case, the final disclosures can be waived in some circumstances. However, preliminary disclosures are required, and the court won’t finalize your divorce unless both parties comply.
What if One Spouse Fails to Disclose Something?
Failure to disclose an asset, income source, or debt can have serious consequences. California courts treat financial nondisclosure very seriously and may impose penalties for hiding or misrepresenting information.
Penalties can include:
- Fines and sanctions
- Awarding a larger share of the hidden asset to the other spouse
- Reopening a divorce settlement that was based on incomplete information
In extreme cases, a party who hides assets could even face criminal contempt charges. Judges expect spouses to act in good faith throughout the divorce process.
Common Mistakes to Avoid When Filling Out a Financial Disclosure Form
Many people find the financial disclosure process confusing. For better or worse, small mistakes can delay your case or hurt your credibility in court.
Here are some things to avoid:
- Guessing or estimating values without documentation
- Failing to disclose separate property, like a pre-marriage inheritance
- Leaving out small accounts or debts, like old credit cards
- Omitting cash income from side work or self-employment
- Forgetting to list benefits like health insurance, bonuses, or stock options
If you’re unsure about how to complete the forms or how to value a certain asset, it’s best to talk to a family law attorney. They can help make sure your disclosures are complete and appropriately filed.
How a Family Lawyer Can Help With the Financial Disclosure Process
Navigating a divorce is already stressful enough on its own. Trying to gather and disclose all of your financial information on your own can add unnecessary frustration to the mix.
An experienced California divorce lawyer can help by:
- Reviewing your income, assets, and debts
- Ensuring your forms are accurate and complete
- Gathering the documents needed to support your claims
- Spotting any errors or omissions in your spouse’s disclosures
- Preparing you for court hearings or settlement negotiations
- Protecting you from penalties related to disclosure violations
Financial disclosure isn’t just paperwork; it’s the foundation of your divorce. Getting it right can mean a smoother process and better long-term outcomes, so this isn’t the time to cut corners.
Contact Our Los Angeles Family Law Attorneys for an Initial Consultation
Financial disclosure forms play a major role in any California divorce. Mistakes or omissions can slow down the process or affect your legal rights. If you’re unsure about how to complete the form or believe your spouse isn’t being honest, it’s smart to speak with a Los Angeles family law attorney who can walk you through your next steps.
Berenji & Associates Divorce Lawyers are here to help guide you through the difficult financial disclosure process. Contact our experienced Los Angeles family lawyers today at (310) 271-6290 to get started with an initial consultation.