Duty to Disclose Assets During Divorce: What You Need to Know

By Robert J. Allison, Esq.

Posted January 29, 2018

In Family Law

Divorcing couples often have critical questions about financial transparency:

What if my spouse is hiding money, property, or other assets from me?
Do I need to disclose all my financial resources, including gifts from family?

Divorcing spouses have significant legal obligations to each other, primarily the “continuing duty to disclose.”

Initial and Final Disclosures

Soon after filing divorce papers, both spouses must comprehensively disclose financial information, with minimal exceptions. This disclosure requires:

Declaring all assets in which you have an interest
Listing all liabilities you are or may be responsible for
Providing detailed income and expense information

Importantly, these disclosures apply to both community and separate property. Spouses must submit:

Initial “preliminary” disclosures
“Final” disclosures at specific stages of divorce proceedings

Ongoing Financial Transparency

Many individuals mistakenly believe their initial disclosure is sufficient. However, spouses have a continuous obligation to update each other about financial changes. This means:

Reporting activities that might impact the other spouse’s assets
Updating information when material changes occur
Maintaining transparency until asset distribution is complete

Consequences of Non-Disclosure

Failing to disclose required financial information can result in severe penalties:

Court may refuse to enter a judgment
Potential property distribution blockage
Judgment could be set aside post-ruling
Monetary sanctions and attorney’s fee penalties
Potential legal re-litigation of the entire case

Protecting Your Financial Interests

Navigating disclosure requirements can be complex. Recommended steps include:

Consult a family law attorney
Understand your specific legal obligations
Act promptly if you suspect non-disclosure
Request court intervention within appropriate time limits

Why Professional Guidance Matters

Determining relevant information and proper disclosure methods isn’t always straightforward. Each divorce case presents unique circumstances requiring specialized legal analysis.

Further Reading » What’s the Difference Between a Preliminary and Final Declaration of Disclosure?

Our family law team at Naimish & Lewis specializes in guiding clients through these intricate legal processes. Protect your financial rights and ensure transparent asset division.

Protect your financial interests. Contact our experienced family law team today for a confidential consultation.

Divorce

Robert J. Allison, Esq.

Mr. Allison is a resolution-oriented associate attorney in our Family Law Practice. Even-keeled and fact focused, he is able to assist our clients understand their rights and obligations through the stress and smoke and mirrors presented in their divorce, custody, and domestic violence matters. During the initial consultation, and again once facts and evidence have been collected, Mr. Allison provides various strategies to help clients present their cases, considering cost, time, and client needs. He prides himself in not making false promises to his clients and is unafraid to speak the raw and sometimes harsh reality of how a Court will decide a matter given a specific set of facts and circumstances, both to his clients and to opposing parties. Many potential clients share that they are unhappy with their previous attorneys because they felt a lack of communication, an uncertainty about the family law process and timeline, and they do not understand the strategy in their case or the invoices they receive. While the legal process is complex, Mr. Allison attempts to reduce the confusion through a reasonable case management process involving client participation, because a family law case is often the most difficult period of time in a client’s life.