Mandatory Financial Disclosures in California

• Income and Expenses Declaration (FL-150)
• Declaration of Disclosure (FL-140)
• Schedule of Assets and Debts (FL-142)
• Declaration Regarding Service of Declaration of Disclosure and Income and Expense Declaration (FL-141)
• Consequences of non-compliance with disclosure rules
• Ready to serve and file?
• References

In California, each party in a divorce must complete a set of mandatory documents, called a Preliminary Declaration of Disclosures, before a judge or commissioner will grant their divorce. In this post, we provide a brief "how-to" on completing and serving these documents so you can move toward finalizing your divorce.

The preparation and exchange of these documents is vital to the divorce process. The documents require each party to disclose their income, assets, and debts (whether separate or community) to each other. If either party purposefully omits an asset or debt, they are subject to legal consequences.

The documents include an Income and Expense Declaration (FL-150), a Schedule of Assets and Debts (FL-142), a Declaration of Disclosure (FL-140), and a Declaration Regarding Service of Declaration of Disclosure and Income and Expense Declaration (FL-141). Let's explore each document in detail.

Related: What Are Financial Disclosures?

Watch: Do You Really Have to Share Financial Disclosures With Your Ex in California Divorce?

Income and Expense Declaration (FL-150)

This document informs the opposing party/counsel of your average monthly income and expenses. 

Give information on the following when you’re working on this form:

• Details on your current job (or your recent job if you’re unemployed)
• Your age and education
• Your tax information
• What you understand about the other party’s income before taxes
• Your income, including at least your last two months of recent pay statements or the most recent Schedule K from your tax returns if you are self-employed
• Your assets
• Your expenses (the best ballpark figures you can manage)

Before serving the other party/attorney, be sure to redact (block out) your Social Security number and any other sensitive identifying information you do not wish to become a part of public record. To do this, use a thick, black pen ti cover these sensitive items. Instead of seeing the sensitive items, the other party will see black lines.

Declaration of Disclosure (FL-140)

This simple, straightforward form indicates that you completed your Schedule of Assets and Debts and Income and Expense Declaration forms and sent them to the other party. 

Follow these instructions when you’re working on the form:

• Check off the boxes for each form you’re attaching.
• Confirm that your tax returns for the last two years have been filed.
• Confirm that you’ve been accurate in all of your disclosures.

Make a copy of this document and all attachments, and include them in your disclosure packet to send to the other party or their lawyer.

Schedule of Assets and Debts (FL-142)

The Schedule of Assets and Debts is the most complex document of the bunch. It is long, it asks for a lot of information, and it lays out all of your assets and debts, community and separate.

Follow these instructions when you fill out the form:

• Provide a description of your real estate.
• Describe your household assets, including furniture.
• Describe any assets, such as jewelry and coin collections.
• Identify any vehicles, boats, and trailers, and attach copies of the title documents.
• Give details about your savings, checking, and deposit accounts.
• Give the location of your cash stores.
• Offer details about your life insurance, stocks, mutual funds, and retirement benefits. Be prepared to attach statements to the document.
• Offer details about your debts, including student loans, taxes, unsecured loans, credit cards, and more. Be prepared to attach statements to the document.

Fill this form out as completely as possible, including everything you can think of and supporting documentation for each item you list.

Remember to redact all sensitive information you don't wish to share with the other party.

Once you have gathered all information for this document, make a copy, and place it with your disclosure packet. This document gets exchanged but is not filed with the court.

Declaration Regarding Service of Declaration of Disclosure and Income and Expense Declaration (FL-141)

The final document is the Declaration Regarding Service of Declaration of Disclosure and Income and Expense Declaration. Though the name is long and redundant, it is a simple "check the box" document informing the court that you prepared and served your mandatory Preliminary Declaration of Disclosure documents. 

Follow these instructions when filling out this form:

• Identify who you are.
• Check off the boxes for the forms you deliver.
• Identify how you gave those forms to your partner.

Once you have filled out this document, make two copies: one to take to court and one to send to the other party or their counsel.

Consequences of non-compliance with disclosure rules

California courts want proof that you’ve shared financial information with your partner. If you don’t share this information, the court could  delay your case. If you’re hoping for a fast-moving divorce, skipping this step would be a mistake.

Lying on your forms can lead you to what experts call “significant financial sanctions.” Those sums aren’t clearly defined, but they can add up to a lot of money.

Lies or omissions could also encourage the court to get items you left out, and you could be forced to pay your spouse’s attorney fees. The court could also cancel any agreements you’ve made regarding property or spousal support.

Watch: Everything You Need to Know About Divorce Financial Disclosures

Ready to serve and file?

Financial disclosures are crucial to a successful and efficient divorce. Before you check this step off your to-do list, make sure you’ve done everything properly.

This checklist can help you make sure you’ve followed this step properly:

• Have you filled out every form and left no lines blank?
• Have you attached all of the required documents and proof to the form?
• Have you signed all of the forms?
• Have you redacted sensitive data you don’t want to share?
• Have you made copies of everything you’re sharing with your spouse?

When your documents are ready to go, find someone older than 18 (who can’t be you) to mail these documents to your spouse. Keep a copy for yourself.

The Declaration Regarding Service of Declaration of Disclosure and Income and Expense Declaration (FL-141) must be filed with the court.

Congratulations! You have completed your mandatory Preliminary Declaration of Disclosure documents.

References