Financial Disclosure Requirements in a California Divorce
- California divorce financial disclosures happen in two stages: the preliminary disclosure and the final disclosure.
- The preliminary disclosure is completed within 60 days of filing the divorce petition.
- The final declaration of disclosure includes supporting financial documents such as account statements, pay statements, tax returns, and property records.
- Complete and organized financial disclosures help you evaluate community property, separate property, support, and a fair division of assets and debts.
The Preliminary Declaration of Disclosure in a California Divorce
At the beginning of a California divorce, one of the first financial steps is to complete a preliminary declaration of disclosure which includes two forms: FL-142, Schedule of Assets and Debts, and FL-150, Income and Expense Declaration.
The preliminary disclosure is to be completed within 60 days of filing the divorce petition. At this stage, you do not have to attach supporting financial documents because your financial situation could change during the divorce, particularly if the case lasts one or two years.
What Financial Information Should You Provide?
Your FL-142 should list your assets and debts.This includes financial accounts and property, such as:
- Bank accounts and statements
- Real estate and deeds
- Investment accounts
- Retirement accounts
- Stock accounts
You also need to provide information about your income and expenses through the FL-150. Documents supporting your income include pay statements and tax returns. The goal is to have your financial information in a place where you and your spouse have a clear picture of your financial circumstances.
The Final Declaration of Disclosure
The second stage is the final declaration of disclosure. At this point, the supporting financial documents must be attached.
If you are going through Mediation and have a good idea about how you want to divide your assets, providing supporting documents with your preliminary disclosure can make the process more efficient. In some cases, couples who provide detailed financial information early in the Mediation process can decide to waive the final disclosure.
Why Financial Disclosures Matter
Your financial disclosures provide the information needed to evaluate important divorce issues. If child or spousal support is an issue, income and expense information determines appropriate support amounts.
Your financial information can also organize property division decisions. You may want to examine the equity in your home, financial accounts, and other assets to determine which portion is community property. Not every asset is necessarily 100% community property.
Once the financial information is organized, you and your spouse have a clearer foundation for discussing how your assets should be divided.
To review, California divorce financial disclosures generally occur in two stages. You first provide information through FL-142 and FL-150, followed by a final disclosure that includes supporting financial documents. Complete and organized financial information helps you evaluate support and property division.
FAQs
What forms are used for preliminary financial disclosures?
The preliminary disclosure generally uses FL-142, Schedule of Assets and Debts, and FL-150, Income and Expense Declaration.
What documents support a financial disclosure?
Supporting documents include bank statements, real estate deeds, investment and retirement account records, stock account records, pay statements, and tax returns.
Do I have to provide supporting documents with the preliminary disclosure?
Supporting documents are not required with the preliminary disclosure. They are required in the final declaration, although providing documents earlier in the process can help to move the financial discussion forward.
Compassion for my clients is important to me, and that’s why I’ve remained a family law practitioner for 30 years — and still love what I do. I’m keenly aware of the emotional toll divorce can have on you and your family. As you navigate the rough waters of transition, my team and I will help you find your balance. We’re here to support you in making the best decisions for your future. I’ve seen the positive results again and again when couples embrace meditation or collaborative divorce. I’d be honored to share these practices with you and set your family on a healthy path.
