Preliminary Declarations of Disclosure
One of the first major milestones in a California divorce is the exchange of Preliminary Declarations of Disclosure, often called PDDs. This is also one of the most misunderstood parts of the process.
Many people think the forms are just paperwork standing between them and a final judgment. In reality, disclosures are much more important than that. They give both spouses a financial roadmap of the case: what assets exist, what debts exist, what income is available, and what issues may need to be resolved before settlement or trial.
California family law is built on the idea that spouses must be honest with each other about financial information during a divorce. The disclosure rules are intended to reduce gamesmanship, encourage fair settlements, and help the court make informed decisions about property, support, and attorney’s fees.
If one spouse does not know what exists—or receives incomplete financial information—it is difficult to negotiate a fair resolution.
At Perkins Family Law, we often see divorce cases become more expensive than they need to be because disclosure documents were rushed, incomplete, or prepared without enough attention to detail. Understanding what the forms require, and why they matter, can help protect your financial interests from the beginning of the case.
What Are Preliminary Declarations of Disclosure?
The Preliminary Declaration of Disclosure is not just one form. It is a package of forms and financial documents that each party generally serves on the other.
In many California divorce, legal separation, and nullity cases, the preliminary disclosure package includes:
- FL-140 – Declaration of Disclosure
- FL-142 – Schedule of Assets and Debts, or FL-160 – Property Declaration
- FL-150 – Income and Expense Declaration, when required
- Recent federal and state income tax returns
- Supporting financial documentation
The disclosure documents are generally served on the other party, not filed with the court. After service, the party files FL-141 – Declaration Regarding Service of Declaration of Disclosure to inform the court that the required disclosures were served.
That distinction matters. The court usually does not review the full disclosure package unless an issue arises. The parties and their attorneys are responsible for making sure the information exchanged is complete and accurate.
Preliminary Declaration of Disclosure Forms
View and/or download the Preliminary Declaration of Disclosure Forms below:
FL-140: View/Download
FL-141: View/Download
FL-142: View/Download
FL-150: View/Download
Why Are Financial Disclosures So Important?
The disclosure process affects nearly every financial issue in a divorce, including:
These documents provide the financial foundation for:
- Division of community property
- Identification of separate property claims
- Characterization of debts
- Child support
- Spousal support
- Attorney’s fee requests
- Settlement negotiations
- Trial preparation
Unlike a typical civil lawsuit, a California divorce involves fiduciary duties between spouses. That means each spouse has obligations of good faith, fair dealing, and full disclosure. A spouse cannot simply wait for the other side to ask the perfect question. Material financial information should be disclosed even if the other party has not specifically requested it.
Complete disclosures make settlement possible. Incomplete disclosures create uncertainty, distrust, and, often, expensive follow-up discovery.
What Happens if a Spouse Fails to Disclose Assets?
The consequences can be serious.
Depending on the facts, a court may:
- Order payment of attorney’s fees and costs
- Impose monetary sanctions
- Find that a spouse breached fiduciary duties
- Set aside or reopen a judgment in appropriate circumstances
- Award an undisclosed asset entirely to the other spouse where authorized by law
One of the best-known examples is In re Marriage of Rossi (2001) 90 Cal.App.4th 34. In that case, a wife concealed lottery winnings during the divorce. Because she intentionally failed to disclose the asset, the court awarded 100% of the lottery winnings to the husband.
Another important case is In re Marriage of Feldman (2007) 153 Cal.App.4th 1470, where the Court of Appeal upheld substantial sanctions after a spouse repeatedly failed to comply with disclosure obligations and discovery requests.
The lesson is straightforward: financial disclosure is not a technicality. It can affect the outcome of the case.
FL-140 – Declaration of Disclosure
FL-140 is the cover sheet for the disclosure package. It may look simple, but it serves an important purpose.
On FL-140, you identify whether you are serving preliminary or final disclosures, which schedules are attached, whether you are using FL-142 or FL-160, whether tax returns are included, and whether additional financial documents are being served.
Think of FL-140 as the table of contents for your disclosure package. It tells the other party what is being provided and confirms that the required components are included.
FL-142 – Schedule of Assets and Debts
FL-142 is often the most important document in the preliminary disclosure package.
Its purpose is to identify assets and debts, regardless of whether you believe they are community property, separate property, or a mix of both. This is a key point. The form is not limited to community property.
Disclosing an asset does not mean you are agreeing it belongs to the community. It means you are identifying that the asset exists so that it can be valued, characterized, and addressed.
How to Complete FL-142 More Effectively
Each asset should be listed individually.
Each asset and debt should be listed clearly and specifically. Avoid vague descriptions such as:
- “Savings account”
- “Truck”
- “Retirement”
- “Credit card”
Instead, use descriptions that allow the other side to identify the item:
- Wells Fargo Checking Account ending in 4821
- Charles Schwab Brokerage Account ending in 7914
- Fidelity 401(k)
- 2023 Toyota Tacoma
- Chase Visa ending in 2286
For each item, provide the information requested by the form, which may include the date acquired, current estimated fair market value, outstanding loan balance, estimated net value, and whether you believe the item is community, separate, or mixed property.
Your characterization is not binding on the other party or the court. It simply states your current position.
Real Estate
If you own real property, list the property address and provide a reasonable estimate of the current fair market value, mortgage balance, any home equity loan or HELOC balance, and estimated equity.
The original purchase price is usually not the most useful number. The better approach is to use current information, such as a recent appraisal, comparative market analysis, reliable online valuation, or recent comparable sales.
If you do not know the exact value, identify the amount as an estimate. Do not leave the property off the form because valuation is difficult.
Retirement Accounts
Retirement accounts are commonly missed because only one spouse’s name appears on the account or because the account existed before marriage.
Retirement assets may include:
- 401(k)s
- 403(b)s
- IRAs and Roth IRAs
- Pensions
- Deferred compensation
- Government retirement systems
- Military retirement
Even if an account began before marriage, contributions or growth during the marriage may create issues that need to be evaluated. The account should still be disclosed.
When possible, include the financial institution, the account balance, and information about when contributions were made.
Business Interests
Business ownership must also be disclosed, even if the business is new, inactive, operating at a loss, or difficult to value.
Include information such as:
- Name of the business
- Ownership percentage
- Type of entity
- Estimated value<, if known/li>
- Any known business loans or debts
A formal business valuation may not be available at the preliminary disclosure stage. That does not mean the business should be omitted. If the value is unknown, say so.
Debts
FL-142 also requires disclosure of liabilities.
Common examples include:
- Credit cards
- Student loans
- Vehicle loans
- Medical bills
- Tax obligations
- Personal loans
- Family loans
- Lines of credit
Identify the creditor, approximate balance, date incurred, and whether you believe the debt is community, separate, or disputed.
Informal debts can be especially tricky. For example, if a parent loaned money to help with a down payment or business expense, the debt should be disclosed if one spouse claims it must be repaid.
Do Not Forget Separate Property
One of the most common disclosure mistakes is omitting assets because they seem separate.
Examples may include:
- Property owned before marriage
- Inheritances
- Gifts received individually
- Separate bank accounts
- Premarital retirement balances
Separate property should still be disclosed. Disclosure is not an admission that the property is community. It is a way to identify the asset and preserve the ability to address characterization later.
FL-150 – Income and Expense Declaration
FL-150 is one of the most important financial forms in a California family law case.
Judges often rely on it when deciding issues such as:
- Temporary child support
- Temporary spousal support
- Attorney’s fees
- Ability to pay
- Need for fee contributions
Because the form is signed under penalty of perjury, accuracy matters. A rushed or incomplete FL-150 can create problems quickly, especially if support or fee requests are at issue.
Documents That May Need to Accompany Your FL-150
The Income and Expense Declaration should be supported by current financial documentation. Depending on your circumstances, this may include:
Depending on your circumstances, this commonly includes:
- Recent pay stubs
- Proof of disability benefits
- Unemployment benefit statements
- Pension statements
- Social Security benefit statements
- Profit and loss statements for self-employed parties
- Documentation of bonuses or commissions
- Rental income documentation
- Other documents showing current income
As part of the preliminary disclosure process, parties also generally exchange recent federal and state income tax returns.
Providing organized backup documents often reduces disputes and limits the need for formal discovery.
Understanding Your Paystub
One of the biggest misconceptions we hear is that support is calculated using only take-home pay.
It is not that simple.
California child support generally starts with gross income, then applies statutory deductions to determine net disposable income under the statewide guideline formula. See Fam. Code, §§ 4055, 4058, 4059.
Your paystub contains important information, but not every deduction on a paystub reduces income for support purposes.
A typical paystub may include:
- Regular wages
- Overtime
- Bonuses
- Commissions
- Federal and California income tax withholding
- Social Security and Medicare
- State Disability Insurance
- Health, dental, and vision insurance
- Union dues
- Retirement contributions
- Flexible Spending Account or Health Savings Account contributions
- Deferred compensation
- Parking or commuter deductions
- Charitable contributions
Each category may be treated differently. The fact that a deduction reduces the amount deposited into your bank account does not necessarily mean it reduces income available for support.
Deductions That Generally Reduce Net Disposable Income
Family Code section 4059 identifies deductions used in determining annual net disposable income. Although guideline software performs the actual calculations, the following deductions are commonly recognized:
Federal and State Income Taxes: Taxes are calculated according to statutory assumptions and applicable tax rates, not simply by accepting the amount withheld on a paycheck.
Social Security (FICA): Mandatory Social Security contributions are deductible.
Medicare: Mandatory Medicare taxes are deductible.
Mandatory Retirement Contributions: If retirement contributions are required as a condition of employment—such as many public employee retirement systems—they generally reduce disposable income.
Mandatory Union Dues: Required union dues may be deductible.
Health Insurance Premiums: Health insurance premiums are considered in the guideline calculation. Premiums attributable to the children may also be allocated separately between the parents.
Deductions That May Reduce Net Disposable Income
Family Code section 4059 identifies deductions used to determine annual net disposable income. Guideline software usually performs the calculation, but the inputs still matter.
Common categories may include:
Federal and State Income Taxes
Taxes are calculated under statutory assumptions and applicable tax rates. The guideline calculation does not simply accept whatever amount happens to be withheld from a paycheck.
Social Security, Medicare, and SDI
Mandatory payroll taxes are generally part of the support calculation.
Mandatory Retirement Contributions
If retirement contributions are required as a condition of employment, such as certain public employee retirement contributions, they may reduce disposable income.
Mandatory Union Dues
Required union dues may also be considered in the calculation.
Health Insurance Premiums
Health insurance premiums may affect guideline support. Premiums attributable to the children may also be addressed separately between the parents.
Deductions That Usually Do Not Reduce Support Income
Many payroll deductions are voluntary. Even though they reduce take-home pay, they usually do not reduce income available for support.
Examples may include:
- Voluntary 401(k) contributions
- Roth retirement contributions
- Employee Stock Purchase Plans
- Flexible Spending Account contributions
- Health Savings Account contributions
- Deferred compensation elections
- Charitable contributions
- Voluntary life insurance
- Supplemental disability insurance
- Legal insurance
- Parking or commuter benefits
A common misconception is that increasing voluntary retirement contributions will lower child support. In most cases, it will not.
Bonuses, Overtime, and Commission Income
FL-150 requires disclosure of all income, not just base salary.
This may include:
- Bonuses
- Overtime
- Commissions
- Shift differentials
- RSU income when vested or paid
- Incentive compensation
- Self-employment income
- Rental income
- Investment income
Whether and how those earnings are included in a support order depends on the facts, including whether the income is regular, recurring, seasonal, speculative, or unusually high or low in a particular year.
The key point is that the income should be disclosed so it can be analyzed properly.
Self-Employment Income Requires Extra Care
For self-employed parties, support calculations often require more analysis than simply looking at a tax return.
Business revenue is not the same as income available for support. Courts may examine:
- Ordinary and necessary business expenses
- Personal expenses paid through the business
- Depreciation
- Vehicle expenses
- Home office deductions
- Cash flow
- Recurring earnings
A tax return is an important starting point, but it may not tell the whole story. If you are self-employed, it is especially important to organize business records early.
Your Duty to Update Financial Information
TThe duty to disclose does not necessarily end after the Preliminary Declaration of Disclosure is served.
California spouses have a continuing obligation to disclose material changes in financial information before the relevant issues are resolved. Examples may include:
- Opening new financial accounts
- Receiving a significant bonus
- Purchasing real estate
- Selling significant assets
- Receiving an inheritance
- Starting a new job
- Incurring substantial debt
Not every small change requires a supplemental disclosure. But material changes should not be ignored. Failing to update important financial information can lead to sanctions and may create problems with enforcement or finality of a judgment.
Final Thoughts
Your Preliminary Declaration of Disclosure is the financial roadmap for your divorce.
Properly prepared disclosures allow both parties to evaluate the marital estate, assess support issues, negotiate from an informed position, and reduce the likelihood of costly disputes. Incomplete or inaccurate disclosures can delay the case, increase attorney’s fees, undermine credibility, and, in serious cases, result in significant financial consequences.
If you are preparing for divorce, do not treat disclosures as a last-minute paperwork exercise. Take the time to gather records, identify all assets and debts, review income carefully, and update material information when circumstances change.
At Perkins Family Law, we help clients prepare accurate and legally compliant disclosures, identify complex assets, analyze income for support, and protect their financial interests throughout the divorce process.
This article is intended for general informational purposes only and does not constitute legal advice. Every family law matter is unique. If you have questions about your disclosure obligations or your specific circumstances, consult with a qualified California family law attorney.
