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 a preliminary declaration of disclosures, which is a list of all assets and debts belonging to all assets of the two parties and the marriage. This will be a three-document process, and it’s important to be detailed and accurate, as they are required for any and all divorce judgments. There is no escaping PDDS – if you want a divorce you have to do them.
The final declaration of disclosures is meant to happen right before the judgment is turned in, or trial. Although in practice, 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, loss of assets, all leading to added expenses, stress, and legal complexities.
How Do Financial Disclosures Affect Property Division And Settlement Outcomes?
Financial disclosures will include everything that needs to be adjudicated and addressed, and more; all separate property needs to be included as well. Property disclosures, bank statements, tax records, investment documentation, and retirement account information will all be attached. It winds up as a very large packet, allowing us to see what needs to be divided and what needs to be addressed.
Disclosures will often ask for documents of each account at your date of marriage and date of separation to help determine ownership of an asset. If characterization (community or separate property) needs to be determined, 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, subpoenaing bank accounts and financial records to determine what you own and what you owe. Records from current and former employers can be subpoenaed, too. This is done to ensure that neither you nor your spouse is hiding money or concealing assets to shield them from division in the divorce.
Honesty upfront is incredibly important. If you are not able to give the appearance of honesty 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 you are caught withholding or hiding assets during financial disclosure, you will have committed perjury, and the issue will have to be addressed by the court. 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 are requesting. 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 you have your mother listed 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) 456-2040 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.
