In this article, you can discover…
- What is required for full financial disclosure in California.
- How financial disclosures will impact property division and settlement outcomes.
- The financial documents you will need for financial disclosure.
What Does Full Financial Disclosure Require In A California Divorce?
Financial disclosure is incredibly important in California, and it comes in two stages: the preliminary declaration of disclosures and the final declaration of disclosures.
First, there’s the preliminary declaration of disclosures (PDDs) — a list of all assets and debts belonging to the two parties and the marriage. This is a three-document process. Being detailed and accurate matters, since every divorce judgment requires them. There is no escaping PDDs — if you want a divorce you have to do them.
You typically complete the final declaration of disclosures right before turning in the judgment, or before trial. In practice, though, most clients waive them, especially if they’ve already come to an agreement with their former spouse.
At both steps, it’s important for you and your spouse to be detailed, accurate and thorough. Leaving out any assets or debts can open the door to re-litigation and loss of assets, both of which lead to added expenses, stress, and legal complexities.
How Do Financial Disclosures Affect Property Division And Settlement Outcomes?
Financial disclosures include everything that needs adjudication, and more. You must include all separate property as well. You’ll attach property disclosures, bank statements, tax records, investment documentation, and retirement account information. It winds up as a very large packet that lets us see what to divide and what to address.
Disclosures often ask for documents of each account at your date of marriage and date of separation, which helps determine ownership of an asset. If you need to determine characterization (community or separate property), disclosure will help clarify this.
Attorney Jordana Better is a thorough, respected family law attorney serving California. Since 2016, she’s helped clients just like you ensure that their financial disclosures are thorough, detailed, and leave nothing out.
Have questions about financial disclosure in California? Reach out to the Law Office of Jordana N. Better for an initial consultation today.
Why Is Transparency Critical To Successful Divorce Mediation?
If you and your spouse cannot be transparent during mediation, you’ll have to go down the path of written discovery. This means subpoenaing bank accounts and financial records to determine what you own and what you owe. You can subpoena records from current and former employers, too. This ensures that neither you nor your spouse hides money or conceals assets to shield them from division in the divorce.
Honesty upfront is incredibly important. If you can’t appear honest from the very beginning, you’ll wind up with a much different divorce than what mediation allows for.
What Legal Penalties Can Apply If I Hide Assets Or Provide False Information?
If the court catches you withholding or hiding assets during financial disclosure, you will have committed perjury, and the court will have to address the issue. Any assets you don’t disclose can work against you later. However, if you simply make an honest mistake on your financial paperwork, you’ll have the opportunity to rectify things and make corrections.
How Should I Prepare Financial Documents Before Entering Divorce Mediation?
Simply go through your assets and debts carefully and list everything the financial disclosure documents ask for. Check and double-check all assets, debts, and accounts. Don’t try to hide money or conceal things, as this can get you into trouble down the road. For example, just because your mother’s name appears on a joint account doesn’t mean you don’t have to disclose it. Be thorough, be honest, and be detailed.
Still Have Questions? Ready To Get Started?
For more information on full financial disclosure in a California divorce, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 915-9113 today.
Attorney Jordana Better is a thorough, respected family law attorney serving California. Since 2016, she’s helped clients just like you ensure that their financial disclosures are thorough, detailed, and leave nothing out.
Have questions about financial disclosure in California? Reach out to the Law Office of Jordana N. Better for an initial consultation today.
