When going through a divorce in California, one of the most important legal requirements you’ll encounter is the Preliminary Declaration of Disclosure (PDD). This crucial step involves each spouse revealing their full financial situation to the other party. While it may feel invasive or overwhelming, it’s designed to ensure a fair and transparent division of assets, debts, and other financial responsibilities.
In this article, we’ll break down what the Preliminary Declaration of Disclosure includes, why it matters, how it affects property division, and what can happen if it’s ignored. Whether you’re just starting the divorce process or are already midway through, understanding the PDD is crucial to protecting your rights and achieving a fair settlement.
What Is a Preliminary Declaration of Disclosure?
The Preliminary Declaration of Disclosure is a mandatory legal step in all California divorce cases, even if the separation is amicable. Under California Family Code Sections 2100–2113, both spouses are required to provide each other with a complete and accurate picture of their financial situation early in the divorce process. Each party must also provide supporting documents, such as tax returns, pay stubs, mortgage statements, and other relevant financial documents.
Some of the information required for the PPD includes the following:
- Income and expenses
- Assets and debts
- Bank accounts
- Real estate holdings
- Retirement accounts
- Credit card balances
- Business interests
The PDD typically includes multiple forms that provide a comprehensive overview of each spouse’s financial standing, enabling both parties and the court to make informed decisions about property division, spousal support, and other financial matters.
These forms include the following:
- Schedule of Assets and Debts (FL-142)
- Income and Expense Declaration (FL-150)
- Declaration of Disclosure (FL-140)
- Proof of Service (FL-141) – confirming that the forms were shared with the other spouse
Why the Preliminary Declaration of Disclosure Matters
The goal of the disclosure process is transparency and fairness. California is a community property state, which means all assets and debts acquired during the marriage are presumed to be split 50/50 unless there’s a valid agreement stating otherwise.
Without full disclosure, it’s impossible to achieve a fair division of marital property. The courts take this requirement seriously because it protects both parties from fraud, hidden assets, and unequal settlements.
Some key benefits of the PDD include:
- Promotes fair settlements based on accurate financial data
- Prevents disputes about “who owns what”
- Reduces the risk of litigation by encouraging cooperation
- Increases trust in mediated or collaborative divorces
How It Affects Property Division
One of the primary functions of the Preliminary Declaration of Disclosure is to lay the foundation for property division. By disclosing all assets and liabilities upfront, both parties and the court can determine what is community property (acquired during the marriage and subject to division) or separate property (acquired before the marriage or via inheritance/gift, which typically remains with the original owner).
Example:
If one spouse purchased a home during the marriage, it would generally be considered community property, even if only one spouse’s name is on the title. However, if that spouse inherited the home before the marriage, it may be considered separate property. The PDD helps clarify these distinctions by documenting ownership, acquisition dates, and financing sources.
In some cases, assets may be commingled, meaning separate and community funds were mixed together (e.g., a joint bank account that includes inherited money). Full disclosure is essential to untangle these complexities and ensure proper allocation.
What Happens If You Don’t File a PDD?
Failing to complete and serve a Preliminary Declaration of Disclosure has serious consequences. Courts will not allow a divorce case to proceed to judgment until both parties have filed and served their PDDs, unless waived by mutual agreement for the final declaration.
Consequences may include:
- Delays in the divorce process
- Court sanctions and fines
- Reopening of the case if assets are later discovered
- Judgments overturned due to nondisclosure
- Loss of community property rights
- In extreme cases, the court may award 100% of the undisclosed asset to the other party (In re Marriage of Rossi)
Tips for Complying with the Disclosure Requirement
The process can feel overwhelming, especially if your finances are complex or if you suspect your spouse may be hiding information. Here are some tips to help you meet the disclosure requirement.
- Gather Financial Records Early — Start collecting documents, such as tax returns, bank statements, mortgage records, credit card bills, and pay stubs, as soon as possible.
- Be Thorough and Honest — Do not omit assets, even unintentionally. You are signing under penalty of perjury, and inaccuracies can come back to haunt you.
- Work With a Family Law Attorney — An experienced divorce attorney can help ensure your forms are complete and that your rights are protected throughout the disclosure and property division process.
- Consider a Forensic Accountant (If Needed) — If you suspect your spouse is hiding assets or underreporting income, a forensic accountant may be able to trace financial irregularities and bring hidden assets to light.
Is There a Final Declaration of Disclosure?
Yes. In many cases, especially those that go to trial, a Final Declaration of Disclosure is also required. This contains updated financial information and must be exchanged before a final judgment is entered, unless both parties mutually waive it in writing. The final declaration ensures that no significant changes occurred between the initial disclosure and the final settlement or trial.
Let The Gorski Firm Help You Get the Fair Divorce Settlement You’re Entitled To
Divorce is never easy, and the financial disclosure process can be particularly stressful. But following the Preliminary Declaration of Disclosure requirement is essential for achieving a fair and lawful resolution to your case. If you’re going through a divorce in California, working with an experienced attorney can make all the difference.
At The Gorski Firm, we guide clients through every step of the disclosure and property division process. We’ll make sure your rights are protected, your documents are properly completed, and your financial future is secure. Contact us today to schedule a confidential consultation.
