California divorce cases involve a lot of paperwork. This includes financial disclosure forms. California Law requires that all spouses disclose all assets, income, and debts to the court. This is required for property division. You could be facing serious penalties, including criminal charges, if you fail to disclose all assets during a California divorce.
What is the DISCLOSURE of ASSETS DURING a Divorce?
- The state law requires that assets be disclosed to preserve and protect the community assets as well as any liabilities at the time of separation. California’s community property includes all assets and liabilities acquired during a marriage. California divorce cases will have a 50/50 split of community property. California is the only state that doesn’t use an equitable division law.
- The disclosure of assets is a legal requirement according to California Penal Code Section 112 states that you have knowingly made false statements of fact and took an oath. You could face a California felony charge depending on your circumstances. Penalties include a fine or jail time.
- Additionally, California Family Code 1101 allows for financial compensation to be recovered from a spouse who has been caught hiding assets during a divorce case. You could also be civilly liable if you fail to disclose an asset. An ex-spouse may file a claim against your for breaching fiduciary duty. This could lead to a court order ordering you to pay your ex a specified amount as a penalty. The usual remedy is 50 per cent of the undisclosed assets, plus attorney’s fees.
HOW A LA DIVORCE ATTORNEY CAN HELP You
t is easier to hire a Los Angeles divorce lawyer from the beginning of your marriage dissolution. To avoid mistakes that could lead to serious or even criminal consequences, you can trust your lawyer to accurately and fully fill out all forms, including the Declaration of Disclosure.
Summarized from an article by Boyd Law.
