How to Comply With Financial Disclosure Requirements in California Divorce 

In every California divorce, each party must identify and share the marital estate’s assets and debts. Therefore, preparing financial disclosures in a California divorce requires great detail and can be quite a challenge. If you need help preparing financial disclosure forms in a California divorce, contact A People’s Choice.

Read on to learn more about how to prepare the mandatory financial disclosures and which disclosures can be waived in a California divorce.

Mandatory Financial Disclosures in California Divorce

California family law courts require mandatory financial disclosures between parties in all divorce cases. These disclosures are intended to make settlement negotiations easier by providing transparency regarding the marital estate’s assets and debts.

However, each party must fill out their forms correctly to ensure effectiveness. In fact, the court may punish a party for incorrectly filling out the forms. Furthermore, if the parties fail to exchange these mandatory disclosures, the court may have reason to set aside the judgment altogether.

Mandatory California Divorce Financial Disclosure Forms

Preliminary Financial Disclosures

The petitioner and respondent are required to exchange preliminary financial disclosures in order to receive judgment. These preliminary financial disclosures help the parties and court identify the entire community estate.

The petitioner serves their preliminary declaration of disclosure after serving the respondent with the summons of petition. Then, the respondent will exchange their declaration.

Preliminary financial disclosures consist of the following documents:

1. Declaration of Disclosure FL – 140
2. Schedule of Assets and Debts FL-142
3. Income and Expense Declaration FL-150
4. Declaration Regarding Service of Declaration of Disclosure FL-141

In the preliminary disclosure, each party identifies their assets and debts under penalty of perjury under California law. Furthermore, upon signing the declaration, each party confirms that they have disclosed all known assets and debts at the time of execution. In addition, both parties must confirm any financial opportunities presented to the marital community estate at the time of signing.

Keep in mind that the petitioner must always serve their preliminary disclosures on the respondent. However, if the respondent has not appeared in the case, there is no marital settlement agreement, and the case is proceeding as a true default case, the petitioner can waive the respondent’s preliminary disclosure.

Final Disclosures

Prior to finalizing the divorce, each party must exchange a final disclosure.

If the respondent failed to file a response to the petition, or if both parties agree in writing to skip the final disclosure, then there is no need to file. Otherwise, parties must update the following forms as part of exchanging the final disclosure:

1. Declaration of Disclosure FL – 140
2. Schedule of Assets and Debts FL-142
3. Income and Expense Declaration FL-150
4. Declaration Regarding Service of Declaration of Disclosure FL-141

Waiving Financial Disclosure Forms in California Divorce

Preliminary Disclosures

Preliminary disclosures cannot be waived unless the petitioner waives the respondent’s preliminary and final disclosures in a true default case.

In a true default case, the respondent makes no appearance in the case, does not file a response to the petition, and does not sign a marital settlement agreement.

Final Disclosures

However, if the respondent did file a formal response to the petition and/or the parties sign a marital settlement agreement, they can waive final disclosures. The parties can agree to waive final disclosure by completing the Stipulation and Waiver of Final Disclosure, Form FL-144, or their county’s local form of this waiver, such as Ventura County’s local form VN-131.

Additionally, if the parties prepare a marital settlement agreement, under California Family Code Section 2105(d), they must include specific language that acknowledges mutual consent to waive the final declaration of disclosure.

How a Legal Document Assistant Can Help

If you are involved in a California divorce, hire a legal document assistant to help prepare your financial disclosure forms to ensure they are filled out correctly. Contact A People’s Choice for more information about preparing disclosures in a California divorce case and to learn how we can help.