After the Respondent has been served, both sides have to prepare and exchange their “preliminary declaration of disclosure” which sets forth the identity of all assets and liabilities in which the spouse may have an interest or obligation, whether community or separate, and all of the spouse’s current earnings and obligations. This disclosure must also be updated when significant changes occur.

The disclosures are made on court forms in which each party sets forth his or her statement of the community property, separate property and debts. The preliminary declarations of Disclosure must be accompanied by a completed income and expense declarations in which each party states their respective incomes and expenses.

Not later than forty-five days before trial, the parties must exchange their final declarations of disclosure. In their final declarations of disclosure, each party is required to state all material facts concerning the following:

• Whether an asset is community property or separate property

• When the asset was acquired

• The value of the asset and any loans against it

• All debts and obligations claimed to be owed

The law imposes severe penalties on a party who has not filed a preliminary or final declaration of disclosure. These penalties include the imposition of monetary sanctions and an order preventing the non-complying party from presenting his or her case in court.

The exchange of preliminary declarations of disclosure is mandated by the Family Code. However, the code provides that the parties can agree to waive the exchange of their final declarations of disclosure. This is commonly done where spouses resolve their cases without going to trial. A waiver of the final declarations of disclosure must be in writing and must include particular language that is set forth in the Family Code.