Posted in Divorce
California doesn’t let spouses guess at what the other one owns or earns. Each side has to put assets, debts, and income in writing, sign the lists under penalty of perjury, and hand them over. We explain when those lists are due and what happens when one is missing, so Culver City spouses know what to gather.
Disclosure Starts With the First Filing
California Family Code section 2104 requires each party to give the other a preliminary declaration of disclosure. The spouse who files serves it with the petition or within sixty days after filing, and the responding spouse does the same with the response. Dates can be extended by agreement or court order.
Because the deadline runs from the filing, gathering records works best before the divorce case begins. Our Culver City divorce lawyer team helps a spouse build the lists from bank statements, loan papers, and tax returns well ahead of time. Amendments are allowed. Still, a sworn declaration should be accurate the first time.
The Preliminary Declaration Covers Every Asset and Debt
The declaration must describe all assets in which a spouse has or may have an interest and all debts the spouse is or may be liable for. That applies whether an item is community, quasi-community, or separate property, and the spouse may state how they believe each item should be classified. The preliminary declaration also lists the tax returns filed in the prior two years. Supporting records include:
- Bank, brokerage, and retirement account statements
- Deeds, mortgage statements, and vehicle titles
- Business ownership papers and valuation reports
Business interests and rental property take more than an account statement to describe, so we review the numbers behind them through our Culver City attorney CPA services. We trace each figure to the underlying records. The goal is to find gaps before the other side does.
Duties Continue Until Property Is Divided
Family Code section 2102 applies disclosure duties from the date of separation. Each spouse must accurately disclose assets, liabilities, current earnings, accumulations, and expenses, and material changes must be added immediately. For an asset or debt, the duties continue until it is distributed.
A post-separation opportunity that grows out of a pre-separation investment must be disclosed in writing early enough for the other spouse to decide whether to take part. Equity awards and bonuses affect the earnings a spouse reports, and our work on dividing executive compensation starts with the award agreements. We read each award agreement before a declaration is signed.
The Final Declaration Comes Before a Settlement
Family Code section 2105 requires a final declaration of disclosure before or when the spouses sign an agreement resolving property or support issues. If the case goes to trial, it is due no later than forty-five days before the first assigned trial date. It covers classification, community asset values, and each spouse’s earnings and expenses.
Spouses negotiating asset division can waive the final declaration by a stipulation signed under penalty of perjury. The waiver has to state that both preliminary declarations were exchanged and that each spouse acted knowingly and voluntarily. It doesn’t remove the duty to exchange current income and expense declarations.
Missing Disclosures Carry Consequences
Family Code section 2107 lets a spouse who has served a declaration ask the other to prepare a missing one or add detail. If the request is ignored, the court can compel a further response or bar the noncomplying spouse from presenting evidence on matters the declaration left out. The statute also requires money sanctions, including reasonable attorney’s fees and costs, unless the court finds substantial justification or that sanctions would be unjust.
When a judgment is entered without full compliance, the statute directs the court to set it aside. Where the court approved a voluntary waiver, the judgment is set aside only if the complying spouse asks, unless the motion rests on fraud or perjury. Incomplete lists therefore put a finished judgment at risk.
Income Figures Feed Support Discussions
The income and expense declaration shows each spouse’s earnings, accumulations, and expenses, and those figures feed into support discussions. Our Culver City child support lawyer team compares each entry with pay records before a declaration is served. That keeps support numbers consistent with the file.
At Skarin Law Group, president Matthew Skarin holds a business economics degree with an emphasis in accounting from UC Santa Barbara and a J.D. from Loyola Law School. He is a Fellow of the American Academy of Matrimonial Lawyers, Southern California Chapter. That financial training fits disclosure work, since the lists describe real estate, business interests, and tax filings, and Culver City spouses can reach out to us to go through their records before the first deadline.
