2100. The Legislature finds and declares the following:
(a) It is the policy of the State of California (1) to marshal,
preserve, and protect community and quasi-community assets and
liabilities that exist at the date of separation so as to avoid
dissipation of the community estate before distribution, (2) to
ensure fair and sufficient child and spousal support awards, and (3)
to achieve a division of community and quasi-community assets and
liabilities on the dissolution or nullity of marriage or legal
separation of the parties as provided under California law.
(b) Sound public policy further favors the reduction of the
adversarial nature of marital dissolution and the attendant costs by
fostering full disclosure and cooperative discovery.
(c) In order to promote this public policy, a full and accurate
disclosure of all assets and liabilities in which one or both parties
have or may have an interest must be made in the early stages of a
proceeding for dissolution of marriage or legal separation of the
parties, regardless of the characterization as community or separate,
together with a disclosure of all income and expenses of the
parties. Moreover, each party has a continuing duty to immediately,
fully, and accurately update and augment that disclosure to the
extent there have been any material changes so that at the time the
parties enter into an agreement for the resolution of any of these
issues, or at the time of trial on these issues, each party will have
a full and complete knowledge of the relevant underlying facts.
2101. Unless the provision or context otherwise requires, the
following definitions apply to this chapter:
(a) "Asset" includes, but is not limited to, any real or personal
property of any nature, whether tangible or intangible, and whether
currently existing or contingent.
(b) "Default judgment" does not include a stipulated judgment or
any judgment pursuant to a marital settlement agreement.
(c) "Earnings and accumulations" includes income from whatever
source derived, as provided in Section 4058.
(d) "Expenses" includes, but is not limited to, all personal
living expenses, but does not include business related expenses.
(e) "Income and expense declaration" includes the Income and
Expense Declaration forms approved for use by the Judicial Council,
and any other financial statement that is approved for use by the
Judicial Council in lieu of the Income and Expense Declaration, if
the financial statement form satisfies all other applicable criteria.
(f) "Liability" includes, but is not limited to, any debt or
obligation, whether currently existing or contingent.
2102. (a) From the date of separation to the date of the
distribution of the community or quasi-community asset or liability
in question, each party is subject to the standards provided in
Section 721, as to all activities that affect the assets and
liabilities of the other party, including, but not limited to, the
following activities:
(1) The accurate and complete disclosure of all assets and
liabilities in which the party has or may have an interest or
obligation and all current earnings, accumulations, and expenses,
including an immediate, full, and accurate update or augmentation to
the extent there have been any material changes.
(2) The accurate and complete written disclosure of any investment
opportunity, business opportunity, or other income-producing
opportunity that presents itself after the date of separation, but
that results from any investment, significant business activity
outside the ordinary course of business, or other income-producing
opportunity of either spouse from the date of marriage to the date of
separation, inclusive. The written disclosure shall be made in
sufficient time for the other spouse to make an informed decision as
to whether he or she desires to participate in the investment
opportunity, business, or other potential income-producing
opportunity, and for the court to resolve any dispute regarding the
right of the other spouse to participate in the opportunity. In the
event of nondisclosure of an investment opportunity, the division of
any gain resulting from that opportunity is governed by the standard
provided in Section 2556.
(3) The operation or management of a business or an interest in a
business in which the community may have an interest.
(b) From the date that a valid, enforceable, and binding
resolution of the disposition of the asset or liability in question
is reached, until the asset or liability has actually been
distributed, each party is subject to the standards provided in
Section 721 as to all activities that affect the assets or
liabilities of the other party. Once a particular asset or liability
has been distributed, the duties and standards set forth in Section
721 shall end as to that asset or liability.
(c) From the date of separation to the date of a valid,
enforceable, and binding resolution of all issues relating to child
or spousal support and professional fees, each party is subject to
the standards provided in Section 721 as to all issues relating to
the support and fees, including immediate, full, and accurate
disclosure of all material facts and information regarding the income
or expenses of the party.
2103. In order to provide full and accurate disclosure of all
assets and liabilities in which one or both parties may have an
interest, each party to a proceeding for dissolution of the marriage
or legal separation of the parties shall serve on the other party a
preliminary declaration of disclosure under Section 2104 and a final
declaration of disclosure under Section 2105, unless service of the
final declaration of disclosure is waived pursuant to Section 2105 or
2110, and shall file proof of service of each with the court.
2104. (a) Except by court order for good cause, as provided in
Section 2107, after or concurrently with service of the petition for
dissolution or nullity of marriage or legal separation of the
parties, each party shall serve on the other party a preliminary
declaration of disclosure, executed under penalty of perjury on a
form prescribed by the Judicial Council. The commission of perjury on
the preliminary declaration of disclosure may be grounds for setting
aside the judgment, or any part or parts thereof, pursuant to
Chapter 10 (commencing with Section 2120), in addition to any and all
other remedies, civil or criminal, that otherwise are available
under law for the commission of perjury.
(b) The preliminary declaration of disclosure shall not be filed
with the court, except on court order. However, the parties shall
file proof of service of the preliminary declaration of disclosure
with the court.
(c) The preliminary declaration of disclosure shall set forth with
sufficient particularity, that a person of reasonable and ordinary
intelligence can ascertain, all of the following:
(1) The identity of all assets in which the declarant has or may
have an interest and all liabilities for which the declarant is or
may be liable, regardless of the characterization of the asset or
liability as community, quasi-community, or separate.
(2) The declarant's percentage of ownership in each asset and
percentage of obligation for each liability where property is not
solely owned by one or both of the parties. The preliminary
declaration may also set forth the declarant's characterization of
each asset or liability.
(d) A declarant may amend his or her preliminary declaration of
disclosure without leave of the court. Proof of service of any
amendment shall be filed with the court.
(e) Along with the preliminary declaration of disclosure, each
party shall provide the other party with a completed income and
expense declaration unless an income and expense declaration has
already been provided and is current and valid.
2105. (a) Except by court order for good cause, before or at the
time the parties enter into an agreement for the resolution of
property or support issues other than pendente lite support, or, if
the case goes to trial, no later than 45 days before the first
assigned trial date, each party, or the attorney for the party in
this matter, shall serve on the other party a final declaration of
disclosure and a current income and expense declaration, executed
under penalty of perjury on a form prescribed by the Judicial
Council, unless the parties mutually waive the final declaration of
disclosure. The commission of perjury on the final declaration of
disclosure by a party may be grounds for setting aside the judgment,
or any part or parts thereof, pursuant to Chapter 10 (commencing with
Section 2120), in addition to any and all other remedies, civil or
criminal, that otherwise are available under law for the commission
of perjury.
(b) The final declaration of disclosure shall include all of the
following information:
(1) All material facts and information regarding the
characterization of all assets and liabilities.
(2) All material facts and information regarding the valuation of
all assets that are contended to be community property or in which it
is contended the community has an interest.
(3) All material facts and information regarding the amounts of
all obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) All material facts and information regarding the earnings,
accumulations, and expenses of each party that have been set forth in
the income and expense declaration.
(c) In making an order setting aside a judgment for failure to
comply with this section, the court may limit the set aside to those
portions of the judgment materially affected by the nondisclosure.
(d) The parties may stipulate to a mutual waiver of the
requirements of subdivision (a) concerning the final declaration of
disclosure, by execution of a waiver under penalty of perjury entered
into in open court or by separate stipulation. The waiver shall
include all of the following representations:
(1) Both parties have complied with Section 2104 and the
preliminary declarations of disclosure have been completed and
exchanged.
(2) Both parties have completed and exchanged a current income and
expense declaration, that includes all material facts and
information regarding that party's earnings, accumulations, and
expenses.
(3) Both parties have fully complied with Section 2102 and have
fully augmented the preliminary declarations of disclosure, including
disclosure of all material facts and information regarding the
characterization of all assets and liabilities, the valuation of all
assets that are contended to be community property or in which it is
contended the community has an interest, and the amounts of all
obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) The waiver is knowingly, intelligently, and voluntarily
entered into by each of the parties.
(5) Each party understands that this waiver does not limit the
legal disclosure obligations of the parties, but rather is a
statement under penalty of perjury that those obligations have been
fulfilled. Each party further understands that noncompliance with
those obligations will result in the court setting aside the
judgment.
2106. Except as provided in subdivision (d) of Section 2105,
Section 2110, or absent good cause as provided in Section 2107, no
judgment shall be entered with respect to the parties' property
rights without each party, or the attorney for that party in this
matter, having executed and served a copy of the final declaration of
disclosure and current income and expense declaration. Each party,
or his or her attorney, shall execute and file with the court a
declaration signed under penalty of perjury stating that service of
the final declaration of disclosure and current income and expense
declaration was made on the other party or that service of the final
declaration of disclosure has been waived pursuant to subdivision (d)
of Section 2105 or in Section 2110.
2107. (a) If one party fails to serve on the other party a
preliminary declaration of disclosure under Section 2104 or a final
declaration of disclosure under Section 2105, or fails to provide the
information required in the respective declarations with sufficient
particularity, and if the other party has served the respective
declaration of disclosure on the noncomplying party, the complying
party may, within a reasonable time, request preparation of the
appropriate declaration of disclosure or further particularity.
(b) If the noncomplying party fails to comply with a request under
subdivision (a), the complying party may do one or more of the
following:
(1) File a motion to compel a further response.
(2) File a motion for an order preventing the noncomplying party
from presenting evidence on issues that should have been covered in
the declaration of disclosure.
(3) File a motion showing good cause for the court to grant the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to Section
2104 or final declaration of disclosure pursuant to Section 2105. The
voluntary waiver does not affect the rights enumerated in
subdivision (d).
(c) If a party fails to comply with any provision of this chapter,
the court shall, in addition to any other remedy provided by law,
impose money sanctions against the noncomplying party. Sanctions
shall be in an amount sufficient to deter repetition of the conduct
or comparable conduct, and shall include reasonable attorney's fees,
costs incurred, or both, unless the court finds that the noncomplying
party acted with substantial justification or that other
circumstances make the imposition of the sanction unjust.
(d) Except as otherwise provided in this subdivision, if a court
enters a judgment when the parties have failed to comply with all
disclosure requirements of this chapter, the court shall set aside
the judgment. The failure to comply with the disclosure requirements
does not constitute harmless error. If the court granted the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to paragraph
(3) of subdivision (b), the court shall set aside the judgment only
at the request of the complying party, unless the motion to set aside
the judgment is based on one of the following:
(1) Actual fraud if the defrauded party was kept in ignorance or
in some other manner was fraudulently prevented from fully
participating in the proceeding.
(2) Perjury, as defined in Section 118 of the Penal Code, in the
preliminary or final declaration of disclosure, in the waiver of the
final declaration of disclosure, or in the current income and expense
statement.
(e) Upon the motion to set aside judgment, the court may order the
parties to provide the preliminary and final declarations of
disclosure that were exchanged between them. Absent a court order to
the contrary, the disclosure declarations shall not be filed with the
court and shall be returned to the parties.
2108. At any time during the proceeding, the court has the
authority, on application of a party and for good cause, to order the
liquidation of community or quasi-community assets so as to avoid
unreasonable market or investment risks, given the relative nature,
scope, and extent of the community estate. However, in no event shall
the court grant the application unless, as provided in this chapter,
the appropriate declaration of disclosure has been served by the
moving party.
2109. The provisions of this chapter requiring a final declaration
of disclosure do not apply to a summary dissolution of marriage, but
a preliminary declaration of disclosure is required.
2110. In the case of a default judgment, the petitioner may waive
the final declaration of disclosure requirements provided in this
chapter, and shall not be required to serve a final declaration of
disclosure on the respondent nor receive a final declaration of
disclosure from the respondent. However, a preliminary declaration of
disclosure by the petitioner is required.
2111. A disclosure required by this chapter does not abrogate the
attorney work product privilege or impede the power of the court to
issue protective orders.
2112. The Judicial Council shall adopt appropriate forms and modify
existing forms to effectuate the purposes of this chapter.
2113. This chapter applies to any proceeding commenced on or after
January 1, 1993.
2100. The Legislature finds and declares the following:
(a) It is the policy of the State of California (1) to marshal,
preserve, and protect community and quasi-community assets and
liabilities that exist at the date of separation so as to avoid
dissipation of the community estate before distribution, (2) to
ensure fair and sufficient child and spousal support awards, and (3)
to achieve a division of community and quasi-community assets and
liabilities on the dissolution or nullity of marriage or legal
separation of the parties as provided under California law.
(b) Sound public policy further favors the reduction of the
adversarial nature of marital dissolution and the attendant costs by
fostering full disclosure and cooperative discovery.
(c) In order to promote this public policy, a full and accurate
disclosure of all assets and liabilities in which one or both parties
have or may have an interest must be made in the early stages of a
proceeding for dissolution of marriage or legal separation of the
parties, regardless of the characterization as community or separate,
together with a disclosure of all income and expenses of the
parties. Moreover, each party has a continuing duty to immediately,
fully, and accurately update and augment that disclosure to the
extent there have been any material changes so that at the time the
parties enter into an agreement for the resolution of any of these
issues, or at the time of trial on these issues, each party will have
a full and complete knowledge of the relevant underlying facts.
2101. Unless the provision or context otherwise requires, the
following definitions apply to this chapter:
(a) "Asset" includes, but is not limited to, any real or personal
property of any nature, whether tangible or intangible, and whether
currently existing or contingent.
(b) "Default judgment" does not include a stipulated judgment or
any judgment pursuant to a marital settlement agreement.
(c) "Earnings and accumulations" includes income from whatever
source derived, as provided in Section 4058.
(d) "Expenses" includes, but is not limited to, all personal
living expenses, but does not include business related expenses.
(e) "Income and expense declaration" includes the Income and
Expense Declaration forms approved for use by the Judicial Council,
and any other financial statement that is approved for use by the
Judicial Council in lieu of the Income and Expense Declaration, if
the financial statement form satisfies all other applicable criteria.
(f) "Liability" includes, but is not limited to, any debt or
obligation, whether currently existing or contingent.
2102. (a) From the date of separation to the date of the
distribution of the community or quasi-community asset or liability
in question, each party is subject to the standards provided in
Section 721, as to all activities that affect the assets and
liabilities of the other party, including, but not limited to, the
following activities:
(1) The accurate and complete disclosure of all assets and
liabilities in which the party has or may have an interest or
obligation and all current earnings, accumulations, and expenses,
including an immediate, full, and accurate update or augmentation to
the extent there have been any material changes.
(2) The accurate and complete written disclosure of any investment
opportunity, business opportunity, or other income-producing
opportunity that presents itself after the date of separation, but
that results from any investment, significant business activity
outside the ordinary course of business, or other income-producing
opportunity of either spouse from the date of marriage to the date of
separation, inclusive. The written disclosure shall be made in
sufficient time for the other spouse to make an informed decision as
to whether he or she desires to participate in the investment
opportunity, business, or other potential income-producing
opportunity, and for the court to resolve any dispute regarding the
right of the other spouse to participate in the opportunity. In the
event of nondisclosure of an investment opportunity, the division of
any gain resulting from that opportunity is governed by the standard
provided in Section 2556.
(3) The operation or management of a business or an interest in a
business in which the community may have an interest.
(b) From the date that a valid, enforceable, and binding
resolution of the disposition of the asset or liability in question
is reached, until the asset or liability has actually been
distributed, each party is subject to the standards provided in
Section 721 as to all activities that affect the assets or
liabilities of the other party. Once a particular asset or liability
has been distributed, the duties and standards set forth in Section
721 shall end as to that asset or liability.
(c) From the date of separation to the date of a valid,
enforceable, and binding resolution of all issues relating to child
or spousal support and professional fees, each party is subject to
the standards provided in Section 721 as to all issues relating to
the support and fees, including immediate, full, and accurate
disclosure of all material facts and information regarding the income
or expenses of the party.
2103. In order to provide full and accurate disclosure of all
assets and liabilities in which one or both parties may have an
interest, each party to a proceeding for dissolution of the marriage
or legal separation of the parties shall serve on the other party a
preliminary declaration of disclosure under Section 2104 and a final
declaration of disclosure under Section 2105, unless service of the
final declaration of disclosure is waived pursuant to Section 2105 or
2110, and shall file proof of service of each with the court.
2104. (a) Except by court order for good cause, as provided in
Section 2107, after or concurrently with service of the petition for
dissolution or nullity of marriage or legal separation of the
parties, each party shall serve on the other party a preliminary
declaration of disclosure, executed under penalty of perjury on a
form prescribed by the Judicial Council. The commission of perjury on
the preliminary declaration of disclosure may be grounds for setting
aside the judgment, or any part or parts thereof, pursuant to
Chapter 10 (commencing with Section 2120), in addition to any and all
other remedies, civil or criminal, that otherwise are available
under law for the commission of perjury.
(b) The preliminary declaration of disclosure shall not be filed
with the court, except on court order. However, the parties shall
file proof of service of the preliminary declaration of disclosure
with the court.
(c) The preliminary declaration of disclosure shall set forth with
sufficient particularity, that a person of reasonable and ordinary
intelligence can ascertain, all of the following:
(1) The identity of all assets in which the declarant has or may
have an interest and all liabilities for which the declarant is or
may be liable, regardless of the characterization of the asset or
liability as community, quasi-community, or separate.
(2) The declarant's percentage of ownership in each asset and
percentage of obligation for each liability where property is not
solely owned by one or both of the parties. The preliminary
declaration may also set forth the declarant's characterization of
each asset or liability.
(d) A declarant may amend his or her preliminary declaration of
disclosure without leave of the court. Proof of service of any
amendment shall be filed with the court.
(e) Along with the preliminary declaration of disclosure, each
party shall provide the other party with a completed income and
expense declaration unless an income and expense declaration has
already been provided and is current and valid.
2105. (a) Except by court order for good cause, before or at the
time the parties enter into an agreement for the resolution of
property or support issues other than pendente lite support, or, if
the case goes to trial, no later than 45 days before the first
assigned trial date, each party, or the attorney for the party in
this matter, shall serve on the other party a final declaration of
disclosure and a current income and expense declaration, executed
under penalty of perjury on a form prescribed by the Judicial
Council, unless the parties mutually waive the final declaration of
disclosure. The commission of perjury on the final declaration of
disclosure by a party may be grounds for setting aside the judgment,
or any part or parts thereof, pursuant to Chapter 10 (commencing with
Section 2120), in addition to any and all other remedies, civil or
criminal, that otherwise are available under law for the commission
of perjury.
(b) The final declaration of disclosure shall include all of the
following information:
(1) All material facts and information regarding the
characterization of all assets and liabilities.
(2) All material facts and information regarding the valuation of
all assets that are contended to be community property or in which it
is contended the community has an interest.
(3) All material facts and information regarding the amounts of
all obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) All material facts and information regarding the earnings,
accumulations, and expenses of each party that have been set forth in
the income and expense declaration.
(c) In making an order setting aside a judgment for failure to
comply with this section, the court may limit the set aside to those
portions of the judgment materially affected by the nondisclosure.
(d) The parties may stipulate to a mutual waiver of the
requirements of subdivision (a) concerning the final declaration of
disclosure, by execution of a waiver under penalty of perjury entered
into in open court or by separate stipulation. The waiver shall
include all of the following representations:
(1) Both parties have complied with Section 2104 and the
preliminary declarations of disclosure have been completed and
exchanged.
(2) Both parties have completed and exchanged a current income and
expense declaration, that includes all material facts and
information regarding that party's earnings, accumulations, and
expenses.
(3) Both parties have fully complied with Section 2102 and have
fully augmented the preliminary declarations of disclosure, including
disclosure of all material facts and information regarding the
characterization of all assets and liabilities, the valuation of all
assets that are contended to be community property or in which it is
contended the community has an interest, and the amounts of all
obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) The waiver is knowingly, intelligently, and voluntarily
entered into by each of the parties.
(5) Each party understands that this waiver does not limit the
legal disclosure obligations of the parties, but rather is a
statement under penalty of perjury that those obligations have been
fulfilled. Each party further understands that noncompliance with
those obligations will result in the court setting aside the
judgment.
2106. Except as provided in subdivision (d) of Section 2105,
Section 2110, or absent good cause as provided in Section 2107, no
judgment shall be entered with respect to the parties' property
rights without each party, or the attorney for that party in this
matter, having executed and served a copy of the final declaration of
disclosure and current income and expense declaration. Each party,
or his or her attorney, shall execute and file with the court a
declaration signed under penalty of perjury stating that service of
the final declaration of disclosure and current income and expense
declaration was made on the other party or that service of the final
declaration of disclosure has been waived pursuant to subdivision (d)
of Section 2105 or in Section 2110.
2107. (a) If one party fails to serve on the other party a
preliminary declaration of disclosure under Section 2104 or a final
declaration of disclosure under Section 2105, or fails to provide the
information required in the respective declarations with sufficient
particularity, and if the other party has served the respective
declaration of disclosure on the noncomplying party, the complying
party may, within a reasonable time, request preparation of the
appropriate declaration of disclosure or further particularity.
(b) If the noncomplying party fails to comply with a request under
subdivision (a), the complying party may do one or more of the
following:
(1) File a motion to compel a further response.
(2) File a motion for an order preventing the noncomplying party
from presenting evidence on issues that should have been covered in
the declaration of disclosure.
(3) File a motion showing good cause for the court to grant the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to Section
2104 or final declaration of disclosure pursuant to Section 2105. The
voluntary waiver does not affect the rights enumerated in
subdivision (d).
(c) If a party fails to comply with any provision of this chapter,
the court shall, in addition to any other remedy provided by law,
impose money sanctions against the noncomplying party. Sanctions
shall be in an amount sufficient to deter repetition of the conduct
or comparable conduct, and shall include reasonable attorney's fees,
costs incurred, or both, unless the court finds that the noncomplying
party acted with substantial justification or that other
circumstances make the imposition of the sanction unjust.
(d) Except as otherwise provided in this subdivision, if a court
enters a judgment when the parties have failed to comply with all
disclosure requirements of this chapter, the court shall set aside
the judgment. The failure to comply with the disclosure requirements
does not constitute harmless error. If the court granted the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to paragraph
(3) of subdivision (b), the court shall set aside the judgment only
at the request of the complying party, unless the motion to set aside
the judgment is based on one of the following:
(1) Actual fraud if the defrauded party was kept in ignorance or
in some other manner was fraudulently prevented from fully
participating in the proceeding.
(2) Perjury, as defined in Section 118 of the Penal Code, in the
preliminary or final declaration of disclosure, in the waiver of the
final declaration of disclosure, or in the current income and expense
statement.
(e) Upon the motion to set aside judgment, the court may order the
parties to provide the preliminary and final declarations of
disclosure that were exchanged between them. Absent a court order to
the contrary, the disclosure declarations shall not be filed with the
court and shall be returned to the parties.
2108. At any time during the proceeding, the court has the
authority, on application of a party and for good cause, to order the
liquidation of community or quasi-community assets so as to avoid
unreasonable market or investment risks, given the relative nature,
scope, and extent of the community estate. However, in no event shall
the court grant the application unless, as provided in this chapter,
the appropriate declaration of disclosure has been served by the
moving party.
2109. The provisions of this chapter requiring a final declaration
of disclosure do not apply to a summary dissolution of marriage, but
a preliminary declaration of disclosure is required.
2110. In the case of a default judgment, the petitioner may waive
the final declaration of disclosure requirements provided in this
chapter, and shall not be required to serve a final declaration of
disclosure on the respondent nor receive a final declaration of
disclosure from the respondent. However, a preliminary declaration of
disclosure by the petitioner is required.
2111. A disclosure required by this chapter does not abrogate the
attorney work product privilege or impede the power of the court to
issue protective orders.
2112. The Judicial Council shall adopt appropriate forms and modify
existing forms to effectuate the purposes of this chapter.
2113. This chapter applies to any proceeding commenced on or after
January 1, 1993.
2100. The Legislature finds and declares the following:
(a) It is the policy of the State of California (1) to marshal,
preserve, and protect community and quasi-community assets and
liabilities that exist at the date of separation so as to avoid
dissipation of the community estate before distribution, (2) to
ensure fair and sufficient child and spousal support awards, and (3)
to achieve a division of community and quasi-community assets and
liabilities on the dissolution or nullity of marriage or legal
separation of the parties as provided under California law.
(b) Sound public policy further favors the reduction of the
adversarial nature of marital dissolution and the attendant costs by
fostering full disclosure and cooperative discovery.
(c) In order to promote this public policy, a full and accurate
disclosure of all assets and liabilities in which one or both parties
have or may have an interest must be made in the early stages of a
proceeding for dissolution of marriage or legal separation of the
parties, regardless of the characterization as community or separate,
together with a disclosure of all income and expenses of the
parties. Moreover, each party has a continuing duty to immediately,
fully, and accurately update and augment that disclosure to the
extent there have been any material changes so that at the time the
parties enter into an agreement for the resolution of any of these
issues, or at the time of trial on these issues, each party will have
a full and complete knowledge of the relevant underlying facts.
2101. Unless the provision or context otherwise requires, the
following definitions apply to this chapter:
(a) "Asset" includes, but is not limited to, any real or personal
property of any nature, whether tangible or intangible, and whether
currently existing or contingent.
(b) "Default judgment" does not include a stipulated judgment or
any judgment pursuant to a marital settlement agreement.
(c) "Earnings and accumulations" includes income from whatever
source derived, as provided in Section 4058.
(d) "Expenses" includes, but is not limited to, all personal
living expenses, but does not include business related expenses.
(e) "Income and expense declaration" includes the Income and
Expense Declaration forms approved for use by the Judicial Council,
and any other financial statement that is approved for use by the
Judicial Council in lieu of the Income and Expense Declaration, if
the financial statement form satisfies all other applicable criteria.
(f) "Liability" includes, but is not limited to, any debt or
obligation, whether currently existing or contingent.
2102. (a) From the date of separation to the date of the
distribution of the community or quasi-community asset or liability
in question, each party is subject to the standards provided in
Section 721, as to all activities that affect the assets and
liabilities of the other party, including, but not limited to, the
following activities:
(1) The accurate and complete disclosure of all assets and
liabilities in which the party has or may have an interest or
obligation and all current earnings, accumulations, and expenses,
including an immediate, full, and accurate update or augmentation to
the extent there have been any material changes.
(2) The accurate and complete written disclosure of any investment
opportunity, business opportunity, or other income-producing
opportunity that presents itself after the date of separation, but
that results from any investment, significant business activity
outside the ordinary course of business, or other income-producing
opportunity of either spouse from the date of marriage to the date of
separation, inclusive. The written disclosure shall be made in
sufficient time for the other spouse to make an informed decision as
to whether he or she desires to participate in the investment
opportunity, business, or other potential income-producing
opportunity, and for the court to resolve any dispute regarding the
right of the other spouse to participate in the opportunity. In the
event of nondisclosure of an investment opportunity, the division of
any gain resulting from that opportunity is governed by the standard
provided in Section 2556.
(3) The operation or management of a business or an interest in a
business in which the community may have an interest.
(b) From the date that a valid, enforceable, and binding
resolution of the disposition of the asset or liability in question
is reached, until the asset or liability has actually been
distributed, each party is subject to the standards provided in
Section 721 as to all activities that affect the assets or
liabilities of the other party. Once a particular asset or liability
has been distributed, the duties and standards set forth in Section
721 shall end as to that asset or liability.
(c) From the date of separation to the date of a valid,
enforceable, and binding resolution of all issues relating to child
or spousal support and professional fees, each party is subject to
the standards provided in Section 721 as to all issues relating to
the support and fees, including immediate, full, and accurate
disclosure of all material facts and information regarding the income
or expenses of the party.
2103. In order to provide full and accurate disclosure of all
assets and liabilities in which one or both parties may have an
interest, each party to a proceeding for dissolution of the marriage
or legal separation of the parties shall serve on the other party a
preliminary declaration of disclosure under Section 2104 and a final
declaration of disclosure under Section 2105, unless service of the
final declaration of disclosure is waived pursuant to Section 2105 or
2110, and shall file proof of service of each with the court.
2104. (a) Except by court order for good cause, as provided in
Section 2107, after or concurrently with service of the petition for
dissolution or nullity of marriage or legal separation of the
parties, each party shall serve on the other party a preliminary
declaration of disclosure, executed under penalty of perjury on a
form prescribed by the Judicial Council. The commission of perjury on
the preliminary declaration of disclosure may be grounds for setting
aside the judgment, or any part or parts thereof, pursuant to
Chapter 10 (commencing with Section 2120), in addition to any and all
other remedies, civil or criminal, that otherwise are available
under law for the commission of perjury.
(b) The preliminary declaration of disclosure shall not be filed
with the court, except on court order. However, the parties shall
file proof of service of the preliminary declaration of disclosure
with the court.
(c) The preliminary declaration of disclosure shall set forth with
sufficient particularity, that a person of reasonable and ordinary
intelligence can ascertain, all of the following:
(1) The identity of all assets in which the declarant has or may
have an interest and all liabilities for which the declarant is or
may be liable, regardless of the characterization of the asset or
liability as community, quasi-community, or separate.
(2) The declarant's percentage of ownership in each asset and
percentage of obligation for each liability where property is not
solely owned by one or both of the parties. The preliminary
declaration may also set forth the declarant's characterization of
each asset or liability.
(d) A declarant may amend his or her preliminary declaration of
disclosure without leave of the court. Proof of service of any
amendment shall be filed with the court.
(e) Along with the preliminary declaration of disclosure, each
party shall provide the other party with a completed income and
expense declaration unless an income and expense declaration has
already been provided and is current and valid.
2105. (a) Except by court order for good cause, before or at the
time the parties enter into an agreement for the resolution of
property or support issues other than pendente lite support, or, if
the case goes to trial, no later than 45 days before the first
assigned trial date, each party, or the attorney for the party in
this matter, shall serve on the other party a final declaration of
disclosure and a current income and expense declaration, executed
under penalty of perjury on a form prescribed by the Judicial
Council, unless the parties mutually waive the final declaration of
disclosure. The commission of perjury on the final declaration of
disclosure by a party may be grounds for setting aside the judgment,
or any part or parts thereof, pursuant to Chapter 10 (commencing with
Section 2120), in addition to any and all other remedies, civil or
criminal, that otherwise are available under law for the commission
of perjury.
(b) The final declaration of disclosure shall include all of the
following information:
(1) All material facts and information regarding the
characterization of all assets and liabilities.
(2) All material facts and information regarding the valuation of
all assets that are contended to be community property or in which it
is contended the community has an interest.
(3) All material facts and information regarding the amounts of
all obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) All material facts and information regarding the earnings,
accumulations, and expenses of each party that have been set forth in
the income and expense declaration.
(c) In making an order setting aside a judgment for failure to
comply with this section, the court may limit the set aside to those
portions of the judgment materially affected by the nondisclosure.
(d) The parties may stipulate to a mutual waiver of the
requirements of subdivision (a) concerning the final declaration of
disclosure, by execution of a waiver under penalty of perjury entered
into in open court or by separate stipulation. The waiver shall
include all of the following representations:
(1) Both parties have complied with Section 2104 and the
preliminary declarations of disclosure have been completed and
exchanged.
(2) Both parties have completed and exchanged a current income and
expense declaration, that includes all material facts and
information regarding that party's earnings, accumulations, and
expenses.
(3) Both parties have fully complied with Section 2102 and have
fully augmented the preliminary declarations of disclosure, including
disclosure of all material facts and information regarding the
characterization of all assets and liabilities, the valuation of all
assets that are contended to be community property or in which it is
contended the community has an interest, and the amounts of all
obligations that are contended to be community obligations or for
which it is contended the community has liability.
(4) The waiver is knowingly, intelligently, and voluntarily
entered into by each of the parties.
(5) Each party understands that this waiver does not limit the
legal disclosure obligations of the parties, but rather is a
statement under penalty of perjury that those obligations have been
fulfilled. Each party further understands that noncompliance with
those obligations will result in the court setting aside the
judgment.
2106. Except as provided in subdivision (d) of Section 2105,
Section 2110, or absent good cause as provided in Section 2107, no
judgment shall be entered with respect to the parties' property
rights without each party, or the attorney for that party in this
matter, having executed and served a copy of the final declaration of
disclosure and current income and expense declaration. Each party,
or his or her attorney, shall execute and file with the court a
declaration signed under penalty of perjury stating that service of
the final declaration of disclosure and current income and expense
declaration was made on the other party or that service of the final
declaration of disclosure has been waived pursuant to subdivision (d)
of Section 2105 or in Section 2110.
2107. (a) If one party fails to serve on the other party a
preliminary declaration of disclosure under Section 2104 or a final
declaration of disclosure under Section 2105, or fails to provide the
information required in the respective declarations with sufficient
particularity, and if the other party has served the respective
declaration of disclosure on the noncomplying party, the complying
party may, within a reasonable time, request preparation of the
appropriate declaration of disclosure or further particularity.
(b) If the noncomplying party fails to comply with a request under
subdivision (a), the complying party may do one or more of the
following:
(1) File a motion to compel a further response.
(2) File a motion for an order preventing the noncomplying party
from presenting evidence on issues that should have been covered in
the declaration of disclosure.
(3) File a motion showing good cause for the court to grant the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to Section
2104 or final declaration of disclosure pursuant to Section 2105. The
voluntary waiver does not affect the rights enumerated in
subdivision (d).
(c) If a party fails to comply with any provision of this chapter,
the court shall, in addition to any other remedy provided by law,
impose money sanctions against the noncomplying party. Sanctions
shall be in an amount sufficient to deter repetition of the conduct
or comparable conduct, and shall include reasonable attorney's fees,
costs incurred, or both, unless the court finds that the noncomplying
party acted with substantial justification or that other
circumstances make the imposition of the sanction unjust.
(d) Except as otherwise provided in this subdivision, if a court
enters a judgment when the parties have failed to comply with all
disclosure requirements of this chapter, the court shall set aside
the judgment. The failure to comply with the disclosure requirements
does not constitute harmless error. If the court granted the
complying party's voluntary waiver of receipt of the noncomplying
party's preliminary declaration of disclosure pursuant to paragraph
(3) of subdivision (b), the court shall set aside the judgment only
at the request of the complying party, unless the motion to set aside
the judgment is based on one of the following:
(1) Actual fraud if the defrauded party was kept in ignorance or
in some other manner was fraudulently prevented from fully
participating in the proceeding.
(2) Perjury, as defined in Section 118 of the Penal Code, in the
preliminary or final declaration of disclosure, in the waiver of the
final declaration of disclosure, or in the current income and expense
statement.
(e) Upon the motion to set aside judgment, the court may order the
parties to provide the preliminary and final declarations of
disclosure that were exchanged between them. Absent a court order to
the contrary, the disclosure declarations shall not be filed with the
court and shall be returned to the parties.
2108. At any time during the proceeding, the court has the
authority, on application of a party and for good cause, to order the
liquidation of community or quasi-community assets so as to avoid
unreasonable market or investment risks, given the relative nature,
scope, and extent of the community estate. However, in no event shall
the court grant the application unless, as provided in this chapter,
the appropriate declaration of disclosure has been served by the
moving party.
2109. The provisions of this chapter requiring a final declaration
of disclosure do not apply to a summary dissolution of marriage, but
a preliminary declaration of disclosure is required.
2110. In the case of a default judgment, the petitioner may waive
the final declaration of disclosure requirements provided in this
chapter, and shall not be required to serve a final declaration of
disclosure on the respondent nor receive a final declaration of
disclosure from the respondent. However, a preliminary declaration of
disclosure by the petitioner is required.
2111. A disclosure required by this chapter does not abrogate the
attorney work product privilege or impede the power of the court to
issue protective orders.
2112. The Judicial Council shall adopt appropriate forms and modify
existing forms to effectuate the purposes of this chapter.
2113. This chapter applies to any proceeding commenced on or after
January 1, 1993.
