Not Disclosing All Your Financials To Your Spouse Can Cost You

In Divorce cases, several times throughout the case you will have to show the court and your spouse how much you own, owe, earn, and spend. For some it may be tempting to attempt to hide these amounts, thinking that claiming you make a lower amount of money can reduce your potential child support or spousal support obligations, or by hiding what you own you can avoid splitting it with your spouse.

However, if you hide information or if you are not truthful, the court can impose sanctions sufficient and make you pay your spouse's attorney's fees and costs.

If someone hides money or property during a divorce, the court can cancel the original agreement and make a new decision about how everything should be divided once the missing items are discovered.

Also If one spouse hides money or property (like a bank account, a car, or a business) during the divorce, and the court finds that it was done on purpose to trick or deceive the other person (which is considered fraud), the judge can give all of that hidden money or property to the other spouse. The court does this to punish dishonesty and protect the spouse who was kept in the dark.

Even though both spouses are legally required to be honest and list all their money, property, and belongings during a divorce, that doesn't mean you'll automatically lose the things that matter most to you. There are legal ways to negotiate or claim the items you want to keep. An attorney can help you make these requests and claims without risking penalties for hiding anything.

Mishandling “Community v Separate Property” In Your Case

In a California divorce, everything you and your spouse own needs to be divided into two basic categories: community property and separate property.

Community Property is anything that you or your spouse got during the marriage—no matter whose name it's in. It includes:

• Money either of you earned while married

• Things you bought with that money (like cars, furniture, or a house)

• Retirement savings built up during the marriage

Separate Property is anything that you owned before the marriage or that you received as a gift or inheritance (even during the marriage), as long as you kept it separate.

Community property is usually split 50/50 in a divorce. Separate property, on the other hand, stays with the person who owns it.

But sometimes things get mixed together (like using separate money to buy something during the marriage), and that can make the division more complicated or make property "quasi-community propery" . That's why it's important to keep good records and be honest about what you own.

While you are going through a divorce, you are prohibited from destroying, selling, or transferring to another person any property that is community property, or that is potentially community property without the written consent of your spouse or a court order. This is because both spouses are considered equal owners of everything earned or acquired during the marriage also known as "community property" (like cars, furniture, money in cash or in a back account, or a house).

Consequences of destroying, selling, or transferring to another person any property that is community property, or that is potentially community property without the written consent can lead to the court ordering 50% or 100% of the value of that property be awarded to the other spouse. The court can order what's called an equalization payment. This means the dishonest spouse might have to pay the value of that property to the other spouse to make things fair again.

If you used money you had before the marriage—or from an inheritance—to help buy something during the marriage (like a house), that may still be partly your separate property.

But proving that can be complicated. Attorneys know how to “trace” those funds for their clients using financial records and legal standards.

Not Requesting Reimbursement

The idea of having to divide all your assets with your spouse or having to pay them to keep the property or assets you want can seem overwhelming and intimidating. However making the right legal arguments and reimbursement requests to the court can help reduce these amounts if they apply to your case.

While married both spouses share the responsibility for things like rent, mortgage, credit cards, and other bills—these are called community debts. But when the couple separates, one spouse might still use their own personal money (called separate funds) to keep paying off those shared debts. The Law Says that If you do that—pay off shared bills with your own money after you've separated—you may be able to get paid back during the divorce process by requesting a reimbursement.

If you and your spouse used shared money during the marriage ( community money) to pay for one person's education—like college, trade school, or a professional program—the other spouse may be able to get that money back during the divorce. You helped pay for that benefit, and the law says you might be entitled to get that money back.

There are other reimbursement requests that you may be entitled to such as reimbursement for Misappropriated Property or reimbursement for Attorney's Fees. An attorney makes sure your requests are complete, supported, and properly presented, so you have the best chance of getting reimbursed.

Rushing Into a Settlement

In a family law case, especially during a divorce, it's common for both sides to reach a settlement agreement—a written deal that outlines how things like property, money, and custody will be handled. While reaching an agreement can help avoid a long and expensive court battle, it's very important not to rush into one.

Once you sign a settlement and the court approves it, it becomes a final court order. That means it's legally binding, just like a judge's ruling after a trial. In most cases, it's very difficult to undo or change the agreement later—even if you realize you made a mistake, didn't fully understand it, or didn't get a fair deal.

The court does allow changes in rare situations, such as if you can prove fraud, mistake, or that the other person hid important information. But these cases are hard to win and often require strong evidence and legal help. The court generally assumes that both people read, understood, and agreed to the terms willingly.

That's why it's a bad idea to settle just to “get it over with” or because you're feeling emotional, stressed, or pressured. An attorney can help make sure the agreement is fair, that you understand your rights, and that nothing important is left out—before it's too late to change it.

Need Help?

Divorce can be emotionally overwhelming, and the legal process is full of rules and hidden pitfalls that can seriously affect your future if you're not careful. From property division and financial disclosures to reimbursement claims and settlement agreements, one misstep can cost you time, money, and legal rights that are difficult—if not impossible—to recover. At our firm we service most of Southern California, and we know how to navigate California family law to protect your interests, ensure your paperwork is accurate and complete, and fight for a fair outcome. This includes helping you with an uncontested divorce, child custody case, legal separation, mediation and more. Don't take chances with something this important—let us help you avoid costly mistakes and guide you toward a successful result in your case.