The state of California requires couples going through a divorce to exchange their financial information before a divorce decree can be obtained. This is referred to as the Preliminary Declaration of Disclosure or also known as PDD or the Final Declaration of Disclosure or also known as FDD. The FL-140 is a form which serves as a coversheet to the forms FL-142 (Schedule of Assets and Debts), FL-150 (Income and Expense Declaration) and the Parties’ tax returns. PDD is required whereas FDD can be waived per the Parties’ agreement.
FL-142 Schedule of Assets and Debts
The FL-142 is a schedule of each Party’s assets and debts. This form is for listing one’s assets, when these assets were acquired, and their value. All assets, including any real estate, bank accounts, retirement accounts, interest in businesses, automobiles and household possessions are listed. All debts, such as any debts associated with assets, credit card balances, student loans and personal loans are also listed. FL-142 is not filed with the court for privacy reasons.
The FL-150 contains information on one’s income and expenses. This form details the current employment status, education background and level, tax information, and describes all forms of income and expenses for the individual. FL-150 is filed with the court when the Parties are seeking spousal or child support.
Honesty During Disclosure
If you choose Divorce Mediation, rather than litigation, this does not mean that financial information is not discoverable. It is better to dispute why the value of an asset should or should not be considered in settlement than it is to dispute one’s integrity if an asset was not disclosed. An asset or debt that was left out can be divided even after a divorce judgment is entered through a post-judgment motion.
Disclosure is an important step during the divorce process. Financial transparency is necessary in order for the Parties to make an informed decision. The law requires financial transparency and both sides must cooperate in the disclosure of their financial information.
If you are considering divorce and would like to learn more about the divorce process, contact Kim Mediation and Law Center to arrange a free 15-minute phone consultation.