California law requires spouses going through a divorce or legal separation to share their financial information. This mandatory process is called financial disclosure. It ensures both parties have adequate information to make fair decisions about money and property. Honesty is a must during this process.
Here is what to know about financial disclosure:
What should you share?
You are required to share what you own, owe, earn and spend. Therefore, you will report your:
- Assets – Cash, bank statements, real estate records, investment accounts, retirement accounts, vehicles, business interests, high-value personal items, life insurance policies and intellectual property rights.
- Liabilities – Real estate debt, vehicle loans, student loans, credit card debt, taxes and personal loans.
- Income – Gross and net income, including wages, self-employment income, bonuses, commissions, rental income and investment dividends. You will provide pay stubs for the last two months and copies of tax returns filed in the last two years.
- Expenses – Detailed monthly expenses, including rent/mortgage, utilities, food, clothing, insurance, transportation, debt payments and child expenses if you have one.
When should you share it?
If you are the spouse who filed the initial paperwork to start the case (the petitioner), you must share your financial information within 60 days after filing your petition. Your spouse, who receives the documents and files a response with the court (the respondent), must share their financial information within 60 days after filing their response. This initial sharing of information is referred to as your preliminary disclosure.
Pay close attention to the information and documents from your soon-to-be ex-spouse. If something is not adding up, raise the matter immediately.
It’s not uncommon for values on financial information to be inaccurate during financial disclosure. While accidental errors can happen, some people going through a divorce hide assets intentionally. Consider legal guidance to ensure fairness during property division.