Prenup Financial Disclosure in California: What You Must Reveal
One of the biggest mistakes couples make with prenuptial agreements in California is failing to provide full financial disclosure. Even if the agreement seems fair, it can be invalidated if either party hides or fails to disclose important financial information.
In this article, we'll cover what financial disclosure means, what must be revealed, and why it matters for your prenup.
What Does "Full Disclosure" Mean?
California law requires that both partners provide each other with a fair, complete, and accurate picture of their financial situation before signing a prenup. This ensures that both parties understand exactly what rights they may be giving up.
"Full disclosure" includes:
Assets: Real estate, bank accounts, retirement accounts, stocks, business interests.
Debts: Student loans, credit card balances, mortgages, tax liabilities.
Income: Current earnings, employment contracts, bonuses, investment income.
Failure to disclose can result in the agreement being set aside later.
Why Disclosure Is So Important
A prenuptial agreement is only enforceable if both partners enter into it voluntarily and with full knowledge. If one party can prove they didn't know about the other's finances, a court may rule that they couldn't have made an informed decision. Disclosure and the 7-day rule often go hand-in-hand in court review. Read about California's 7-Day Rule for Prenups
💡 Example: If one spouse hides a large investment account and later seeks to enforce the prenup, the court may invalidate the entire agreement.
Common Disclosure Mistakes
Withholding debt – Some people disclose assets but fail to list significant debts.
Guessing at values – Assets should be documented with accurate statements whenever possible.
Forgetting future benefits – Things like stock options, pensions, or anticipated inheritances should be addressed.
Rushing the process – Last-minute agreements often lead to sloppy or incomplete disclosure. In fact, missing disclosures is one of the leading reasons prenups are thrown out.
Best Practices for Financial Disclosure
Use supporting documents: Tax returns, pay stubs, bank statements, and loan documents.
Organize by category: Assets, debts, income, and liabilities.
Update regularly: If your financial situation changes before signing, disclose again.
Work with attorneys: An attorney will ensure nothing important is overlooked.
How Attorneys Help
An experienced California prenup attorney ensures compliance with disclosure requirements by:
Providing detailed financial disclosure checklists.
Ensuring both sides exchange information properly.
Reducing the risk of challenges to enforceability later.
Bottom Line
Financial disclosure is not just a formality, it's a cornerstone of a valid prenuptial agreement in California. By being transparent and thorough, you protect both your agreement and your relationship.
📞 Thinking about a prenup? Contact our office today for guidance and to make sure your disclosures meet California's strict standards.
Want to see how the Financial Disclosures fit into the bigger picture? Read our Complete Guide to California Prenups and Postnups
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