What if One of the Spouses Lies On His or Her Financial Disclosure Forms During the Divorce??

Obtaining a divorce is a formal legal procedure with strict requirements for documentation. In California, transparency is not just encouraged—it is mandated. Each spouse must separately complete and share several financial forms as part of the Preliminary Declaration of Disclosure.

Required Financial Disclosure Forms

These documents provide a snapshot of your financial life and must be completed with absolute honesty:

• Schedule of Assets and Debts (FL-142): A comprehensive list of all items owned and all money owed, categorized as separate or community property.
• Property Declaration (FL-160): A secondary listing to further define marital and personal holdings.
• Income and Expense Declaration (FL-150): A detailed report of your monthly earnings and costs of living.

Because these forms are signed under penalty of perjury, any inaccuracy—whether born of laziness or deceit—can lead to severe legal repercussions.

Handling Incomplete Disclosure Forms

If your spouse submits forms with blank fields or "unknown" markers due to negligence, you must insist on a complete revision. If they refuse to comply, you have legal options:

• Subpoena: You can request the family court judge to subpoena the missing financial records directly from banks or employers.
• Scrutiny: A judge who finds a spouse has been intentionally vague will often designate them an "unreliable witness," leading to greater scrutiny of all their future testimony.

The Risks of Lying on Disclosure Forms

If you discover that a spouse hid assets months or even years after the divorce is finalized, you can return to court to request a set-aside or revision of your settlement. If fraud is proven, the court may:

• Void the previous settlement.
• Award 100% of the hidden asset to the victimized spouse.
• Order the deceptive spouse to pay fines and the other party's attorney fees.
• Impose incarceration in cases of extensive fraud.

Case Study: The $25 Million Lottery Deception

A famous California case serves as a stark warning. A wife won a $25 million lottery jackpot and immediately served her husband with divorce papers without disclosing the winnings. After the deception was uncovered post-divorce, the judge found her guilty of fraud. Under California law, the judge awarded the entire prize to the ex-husband, leaving the wife with nothing. This illustrates that the court takes the duty of "full and accurate disclosure" very seriously.

Avoid Perjury Through Mediation

Inaccuracies are common because researching years of financial data is difficult. However, guessing is not a safe strategy. If you feel overwhelmed by the paperwork, a family law mediator can guide both spouses through the financial requirements together.

Mediation offers a collaborative environment to ensure both parties reach a prompt, honest resolution. It is a simpler, less expensive, and safer alternative to the risks of litigated financial disputes.

About A Fair Way Mediation

A Fair Way Mediation Center offers a relaxed, compassionate atmosphere in an informal setting that encourages a calm and objective approach. This is a safe space that avoids the stress and embarrassment that courtroom procedures can inject into any divorce or separation. All couples are welcome, including traditional or same-sex families.

Visit us: afairway.com