The Modern Woman’s Divorce Guide » The Purpose Driven Divorce, Part IV, written by Kelly Chang Rickert, CFLS

The Purpose Driven Divorce, Part IV, written by Kelly Chang Rickert, CFLS

STEP FOUR: FINANCIAL DISCLOSURE
Purpose: To Reach a Fair Settlement and Ensure the Settlement Will Not Be Overturned For Failure to Disclose

Often in relationships, one person knows more about the couple’s finances than the other. California is a community property state. This means, all property acquired after the date of marriage, before the date of separation and except for gifts and inheritance, is community property. Community property assumes the notion that even in relationships where only one spouse works, the other spouse is contributing to the marriage by staying at home and fulfilling domestic duties. Thus, in a divorce, both parties are entitled to half of the community property.

Because of the community property laws, the law mandates that both parties must make extensive financial disclosures during the divorce process. Generally, disclosures are made in two parts: the Preliminary Declarations of Disclosures, which are exchanged at the outset of the divorce, and the Final Declarations of Disclosures, which are exchanged prior to settlement or trial. Because one party may know more than the other, these mandatory disclosures are the court’s way of preventing foul play. If you are getting divorced in California, you must exchange financial disclosures and you cannot waive full disclosure.

If you are the supporting spouse, you may wonder: “What happens if I don’t disclose my assets? Will my husband ever find out about my offshore bank account in the British Virgin Islands? Well, your husband may never find out about the foreign accounts but if he does, there are an array of consequences you could face as a result of your failure to disclose the information. First, your Marital Settlement Agreement or Dissolution Judgment may be overturned. Second, a Judge may punish you by awarding the entire undisclosed asset to your husband. You may recall the infamous 1996 case of Marriage of Rossi, where Denise Rossi won but intentionally, did not disclose her $1.3 million California State Lottery winnings to her husband in the divorce she filed just eleven days after winning big. Denise successfully divorced with her cash in the bank, however two years later, when her ex-husband inadvertently discovered that she had won the lottery and filed a motion asking the court to overturn their Judgment, a judge granted his request and punished Denis by awarding the ENTIRE $1.3 million dollar lottery winnings to the husband. Thus, the moral of the story is: disclose, disclose, disclose.

Always disclose.

If you missed the first two parts of this series, you can find them here:

STEP ONE: FILING THE PETITION IN CALIFORNIA
Purpose: To get the process started

STEP TWO: GETTING TEMPORARY ORDERS VIA AN OSC
Purpose: To have a sense of peace and order by having temporary orders in writing pending the Judgment

STEP THREE: OBTAINING DOMESTIC VIOLENCE RESTRAINING ORDERS
Purpose: To protect the parties and children in a high-conflict divorce and custody case

Kelly Chang Rickert is a California Certified Family Law Specialist whose family law practice is located in Los Angeles, California. Kelly’s firm Her firm specializes in Divorce and Family Law, and handles all areas of Divorce, Annulment, Spousal Support, Child Support; Modification, Child Custody and Visitation, Prenuptial and Postnuptial Agreements, Adoptions, Property Division; Restraining Orders; and Family Law Mediation. She can be reached at 323/393-5669.

This is not legal advice. You should consult an attorney if you have legal questions that relate to your specific divorce. Technorati Tags: divorce California CA Dissolution Marriage financial finances money disclosure income assets debts expenses divorcing get divorced Kelly Chang Rickert Certified Family Law Specialist Los Angeles women woman law