Distribution of Property-The Importance of Disclosures

I’ve been asked, “Is it that important to disclose all of my property?” The answer of course is a big “YES”.  Most importantly you need to understand the reasons why it is important to disclose.

Just briefly, and for those who may not know, California is a community property state.   This means a divorce court will have jurisdiction to divide property that was acquired during the marriage regardless if it is obtained only in the name of one spouse.  There are exceptions; property that you inherit or you are gifted during your marriage is considered your separate property.  In general the court does not have any jurisdiction to divide your separate property, that is property that you had before you entered into the marriage, that you inherit or were gifted during the marriage, or property that you acquired after your separation date.

In California, before the court can award you a divorce judgment, you must provide a disclosure of all of your community and separate property (in a default case, only the petitioner is required to provide the disclosures, given that the respondent has taken no action in the divorce).  The preliminary disclosure consists of the FL – 150, income and expense declaration and FL –142, schedule of assets and debts, along with declarations regarding your disclosures.  Although these documents are not filed with the court, you must exchange them with your spouse and provide proof of their exchange through your declaration of service and your proof of service.