Financial disclosure is a major part of the California divorce process. Spouses generally exchange financial information so each side has a meaningful understanding of the assets, debts, income, and expenses involved before the case is resolved.

California distinguishes between preliminary and final declarations of disclosure. Although preliminary disclosure requirements generally cannot simply be waived, spouses may be able to waive the exchange of their Final Declarations of Disclosure when specific requirements are satisfied. Importantly, waiving the final disclosure does not eliminate the spouses’ continuing financial disclosure responsibilities.

What Is a Final Declaration of Disclosure in a California Divorce?

A Final Declaration of Disclosure is part of the financial disclosure process that occurs as a California divorce moves toward resolution.

The purpose of financial disclosure is to make sure both spouses have sufficient information about the marital finances before entering into a settlement or proceeding to trial. Property division decisions can be difficult to evaluate when a spouse does not know the nature or value of the assets and liabilities involved.

Final disclosures can provide updated financial information after the preliminary disclosure process and any necessary discovery have occurred.

Because finances may change while a divorce is pending, information provided early in the case may no longer provide a complete picture by the time the parties are preparing to resolve their case.

How Can Spouses Waive Final Declarations of Disclosure?

California permits spouses to mutually waive the final declaration of disclosure when the statutory requirements are satisfied.

The Judicial Council provides Stipulation and Waiver of Final Declaration of Disclosure, Form FL-144, for this purpose.

A waiver should not be confused with an agreement that financial information no longer matters. Instead, the spouses are agreeing that they will not require the formal exchange of final declarations before resolving the case.

The waiver must satisfy California’s requirements rather than simply being an informal verbal agreement between the spouses.

Does Waiving Final Disclosure End the Duty to Disclose Financial Information?

No.

This is an important distinction.

A mutual waiver of final declarations does not, by itself, eliminate the fiduciary obligations spouses owe each other during the California divorce process. It also does not automatically eliminate rights that may exist when significant financial information was withheld.

Spouses should therefore avoid viewing Form FL-144 as permission to conceal assets, income, debts, or other material financial information.

If an account changes substantially, an asset is sold, a significant debt arises, or another material financial development occurs, continuing disclosure responsibilities may still matter.

Should You Waive Final Disclosures Before Settling a California Divorce?

Whether waiving final declarations makes sense depends on the circumstances.

In a relatively straightforward divorce where both spouses have already exchanged complete financial information and understand the marital estate, a waiver may help simplify the final stages of the case.

A complicated divorce involving businesses, investments, disputed separate property, unusual compensation, or concerns about incomplete financial information may require greater caution.

Before signing a California divorce settlement, each spouse should understand the financial information underlying the agreement. Waiving a formal final declaration of disclosure is not the same as waiving the right to make informed decisions about property, debts, and other financial issues.