The preliminary declaration of disclosure is the mandatory financial exchange in every California divorce, legal separation and nullity case. Both parties must complete and exchange detailed financial documents, and it cannot be waived.
For individuals and couples in Orange County who are going through or considering divorce or another family law matter, this is where property division actually begins. The rules are strict, the fiduciary duties continue throughout the case, and mistakes, omissions, or incomplete disclosures can affect settlements and court orders long after the judgment is entered.
Below, we explain what the preliminary declaration of disclosure includes, which forms and financial information must be exchanged, when it has to be done, how filing and service work, what happens when someone fails to disclose, and how to review the other side’s disclosures effectively.
What the Preliminary Declaration Consists Of
The Declaration of Disclosure is a package of Judicial Council disclosure forms rather than a single form, including FL-140, Declaration of Disclosure, and FL-150, Income and Expense Declaration.
FL-140, Declaration of Disclosure. The cover document identifying what is being served in a dissolution case.
FL-142, Schedule of Assets and Debts. Every asset and every debt, with dates acquired, gross fair market values, and amounts owed; these forms are used to identify assets, debts, and their characterization as community or separate property. Some cases use FL-160, Property Declaration, instead.
FL-150, Income and Expense Declaration. Income, deductions, monthly expenses and liabilities, with the last two months of pay stubs attached.
Supporting documents. Including tax returns for the two years before separation, following the form instructions, and including all tax returns filed within the required period, along with documentation supporting your stated values.
A statement of all material facts and information regarding valuation of community assets, obligations, and any income-producing opportunity presented since separation arising from an investment or business opportunity that existed during the marriage.
Other jurisdictions may use different disclosure forms, but the purpose is similar.
Served, Not Filed
A point that confuses people: in a California dissolution or legal separation case, the disclosure documents are served on the other party and generally not filed with the court.
What gets filed is FL-141, Declaration Regarding Service of Declaration of Disclosure, which provides proof the exchange occurred. Each spouse has the obligation to file proof of service with the court after serving the disclosure. Without it on file, the case cannot proceed to judgment.
Service by publication is a limited exception governed by special rules and may require a court order.
Timing
The petitioner must serve the preliminary declaration either with the petition or within sixty days of the filing date of the petition. The respondent must serve either with the response or within sixty days of the filing date of the response.
In practice, many cases exchange later than that, and the timeline may be extended by written agreement or court order for good cause, provided the exchange happens before judgment. Do not treat that flexibility as optional. If you later discover an error, you should amend the disclosure within a reasonable time and preferably before judgment.
The Final Declaration
A final declaration of disclosure is also required before judgment, updating the preliminary exchange, and those final disclosures should reflect any material changes. Absent a valid waiver, the final declaration of disclosure should be exchanged at least 45 days before trial in a contested divorce case. Unlike the preliminary, the final declaration can be waived by written agreement of both parties only in the circumstances allowed by law, using form FL-144.
Waiving the final disclosure is common in agreed cases where the financial position has not changed. Think carefully before you waive final disclosures where you have limited visibility into the other party’s finances.
What Must Be Disclosed
Everything: all assets and liabilities, including community property, separate property, and property in which either party has any interest.
The point people miss: you must disclose assets you believe are your separate property. You indicate on the form that you contend the item is separate, and the forms should describe items with sufficient particularity so a person of reasonable and ordinary intelligence can understand what is being disclosed. You do not leave it off.
Also disclose accounts held in your sole name, retirement accounts from previous employers, deferred compensation and stock options, business interests, cryptocurrency, and anything owed to you, and update disclosures to fill gaps in incomplete financial information and include investment opportunities tied to the marriage or separation period when required.
The Fiduciary Duty
California imposes a fiduciary duty between spouses under the Family Code, which continues until the assets are divided. It requires the highest good faith and fair dealing, and specifically requires disclosure of all material facts about assets and debts.
This is a higher standard than ordinary honesty. It means volunteering relevant information rather than answering narrowly.
The Consequences of Getting It Wrong
California courts take non-disclosure seriously.
A judgment can be set aside for failure to comply with the disclosure requirements. Courts may issue a court order compelling compliance in a dissolution matter, impose monetary sanctions, and award attorney fees. In cases of deliberate concealment, the court can award the entire undisclosed asset to the other party.
The declaration is signed under penalty of perjury. An omission discovered years later can reopen a case you believed was finished, which is why errors are best corrected before judgment rather than left unaddressed.
Reviewing What You Receive
Read the other party’s disclosure carefully. Compare it against tax returns for income sources not otherwise listed, check that every account you know of appears, look at valuations that seem low, and note assets present in earlier records that have disappeared. A careful review can also help you evaluate the characterization of accounts, business interests, and debts shown by the other side.
Where the picture does not reconcile, discovery is available: subpoenas to financial institutions, requests for production, and depositions. Experienced attorneys can use discovery to test incomplete disclosures and obtain documents needed before settlement or trial.
Frequently Asked Questions
Can We Skip Disclosures If We Agree on Everything?
No. The preliminary declaration is mandatory regardless of agreement.
What If I Do Not Know a Value?
Say so, state that the value is unknown, use reasonable diligence to obtain it, and indicate you will supplement or amend later if needed. The item still must be described with enough detail for a person of ordinary intelligence to understand what it is. An honest unknown is better than a guess presented as fact.
What If My Spouse Will Not Serve Theirs?
You can request that the court compel compliance in a divorce case, and the court can enforce disclosure duties through discovery remedies. If the other party continues not to comply, sanctions may follow.
Do I List Assets I Owned Before Marriage?
Yes, identified as your separate property claim.
What If I Find an Undisclosed Asset After Judgment?
A judgment can be set aside for non-disclosure. Time limits apply, so act promptly.
Getting the Disclosure Right
A complete, documented disclosure protects your position and closes off the most common route to reopening a judgment later, so it is worth the time it takes to follow the form instructions and correct mistakes promptly if you discover them.
Our Tustin office’s family law attorneys handle divorce, property division and hidden asset matters throughout Orange County. Read about the FL-140 form, the FL-142 schedule of assets and debts, or what to do if your spouse is hiding assets. To discuss your disclosure, contact our office.
This article is provided for general educational purposes and is not legal advice. California forms and statutes change, and every case depends on its specific facts. Consult a qualified California family law attorney about your circumstances.
