When you’re going through a divorce in California, you can’t move forward without first being honest about what you own, what you owe, and how much money you make. That’s what a Declaration of Disclosure is for. It’s a legal requirement that ensures both spouses have all the financial facts before reaching a settlement or going to trial.
A complete and truthful disclosure can protect your rights, lead to a fair outcome, and help you avoid unnecessary conflict down the road.
Our Los Angeles Family Law firm is highly experienced in preparing your declaration of disclosures. Call us to schedule a consultation regarding your divorce today.
(424) 600-2731Why Full Financial Transparency Matters in Divorce
Divorce involves dividing your financial life. California is a community property state, which means both spouses are generally entitled to an equal share of anything earned or acquired during the marriage. But before anything can be divided fairly, both sides must know exactly what exists.
That’s where the Declaration of Disclosure comes in. It gives each spouse a clear picture of the family’s financial situation. This includes income, assets, debts, and expenses. Without this step, neither side can make informed decisions about support, property division, or settlement terms.
Transparency builds trust and helps avoid costly court battles. It also keeps things fair, especially when one spouse has handled most of the finances during the marriage. The law wants to make sure no one is kept in the dark or taken advantage of during this process.
What Is a Declaration of Disclosure?
The Declaration of Disclosure isn’t a single form. It is a collection of documents that tell the full financial story. Each part is important and must be completed truthfully and completely.
Income and Expenses
Each spouse must share how much money they make and what their regular expenses are. This includes salary, bonuses, freelance income, and any other sources of money. It also includes monthly spending on things like rent, utilities, food, childcare, and transportation.
A Full Inventory of Assets
Both parties must list everything they own, whether it’s separate or community property. This includes:
- Bank accounts
- Retirement accounts
- Real estate
- Cars
- Investment portfolios
- Personal property like jewelry, collectibles, or electronics
Even if you think something isn’t worth much, it must still be disclosed.
Your Debts and Liabilities
Along with assets, you’ll need to report all debts. These might include:
- Mortgages or home equity loans
- Credit card balances
- Car loans
- Personal loans or business liabilities
The court needs this information to understand what each person may be responsible for after the divorce.
Supporting Financial Documents
You must back up your numbers with documents. That typically includes:
- Tax returns (usually two years)
- Recent pay stubs
- Bank statements
- Credit card statements
- Proof of ownership for valuable property
These documents help verify that the financial disclosures are accurate and complete.
Verification Under Penalty of Perjury
The Declaration of Disclosure must be signed and verified under penalty of perjury. This means you’re legally swearing that everything you’ve shared is true to the best of your knowledge. If you lie or leave things out, the court can impose penalties and you could lose property or face fines.
When Do You Have to Exchange Disclosures in a Los Angeles Divorce?
California law requires two separate disclosures in most divorce cases: a Preliminary Declaration of Disclosure (PDD) and a Final Declaration of Disclosure (FDD).
Preliminary Declaration of Disclosure
The PDD must be completed and served (legally delivered) to the other party within 60 days of filing for divorce. This is a mandatory step. You cannot waive the preliminary disclosure.
This early exchange helps get both parties on the same page financially from the start.
Final Declaration of Disclosure
The FDD is served toward the end of the case, either before trial or just before the parties sign a settlement agreement. It acts as an update to the preliminary forms.
Unlike the PDD, the Final Declaration can be waived, but only if both spouses agree in writing. Many couples choose to waive this second disclosure if there haven’t been major financial changes since the first one and they’re reaching a negotiated settlement.
What Happens If You Try to Hide Assets?
Trying to hide money, property, or debts during divorce is a serious mistake. If the court finds out that you’ve left something off your disclosures—either by accident or on purpose—you could face harsh consequences.
In one well-known case, Marriage of Rossi, a woman won the lottery and didn’t tell her husband during their divorce. When he found out later, the court awarded him 100% of the winnings as a penalty for her dishonesty.
The takeaway: hiding assets can backfire. It’s always better to be transparent from the start. You may not like sharing certain things, but full disclosure helps protect your credibility and avoids nasty surprises later on.
How a Los Angeles Divorce Attorney Can Help with Disclosures
Filling out financial forms might seem simple at first, but mistakes or unclear documentation can create big problems later. A knowledgeable divorce attorney can guide you through the disclosure process and make sure:
- All required documents are gathered and submitted on time
- Your forms are filled out accurately and clearly
- You avoid common mistakes that could delay your case
- You don’t unknowingly give up your rights or property
An experienced Los Angeles divorce lawyer can also help evaluate what’s considered community property versus separate property, which can get complicated—especially when assets are mixed or have grown during the marriage.
Questions about Declarations? Talk to a Los Angeles Divorce Lawyer Today
Divorce is never easy, but failing to disclose your finances can make it even harder. Whether you’re worried about protecting your assets or making sure your spouse is being honest, working with a skilled family law attorney can give you peace of mind.
Our Beverly Hills divorce team knows what Los Angeles courts expect in a Declaration of Disclosure—and how to help you get it right. Contact us today for a confidential consultation and take the first step toward a fair and efficient resolution.
Contact a Beverly Hills divorce and family lawyer for help today.