What is an Income and Expense Declaration in Los Angeles Divorces? Understanding its Role in Spousal and Child Support Proceedings
If you’re going through a divorce in Los Angeles, one of the essential forms you will encounter is the Income and Expense Declaration (Form FL-150). While this may seem like just another form to complete, its significance in Los Angeles family law cannot be overstated. The Income and Expense Declaration is a critical tool used by family courts in Los Angeles County to determine various financial matters during divorce, including spousal support (alimony), child support, and other related financial issues.
In this post, we’ll break down what an Income and Expense Declaration is, why it is so important in Los Angeles divorces, and how to avoid common pitfalls. Additionally, we’ll discuss the consequences of filing an inaccurate Income and Expense Declaration and what to do if you suspect the other party is being dishonest.
What is an Income and Expense Declaration?
An Income and Expense Declaration is a standardized four-page form required by California law in divorce cases. Both parties (the spouse filing for divorce and the other spouse) must fill out this form to provide a clear picture of their financial status, including their income and expenses.
The form covers a variety of important financial aspects, including:
Income: This includes wages, salary, business income, self-employment income, rental income, investments (dividends and interest), and any other sources of income.
Monthly Expenses: The form also requires you to list your regular monthly expenses such as housing, utilities, food, transportation, medical expenses, and other necessary living costs.
Assets and Debts: You may need to report any significant assets (e.g., real estate, vehicles, retirement accounts) and debts (e.g., credit card balances, loans) you have.
The goal of the Income and Expense Declaration is to provide both parties and the court with a comprehensive understanding of each person’s financial situation, so that appropriate decisions can be made regarding spousal support, child support, and other related financial issues. This transparency ensures that both spouses and any children involved are supported in a fair and equitable manner during and after the divorce process.
The Legal Importance of the Income and Expense Declaration in Los Angeles
In Los Angeles County, as in other parts of California, the Income and Expense Declaration plays a crucial role in determining financial support during a divorce. Specifically, it is a key factor in the calculation of:
Spousal Support: In Los Angeles, spousal support may be awarded depending on several factors, including the financial needs and ability of both parties. The court uses the Income and Expense Declaration to assess each party’s income, expenses, and overall financial picture when making decisions about spousal support.
Child Support: California’s guideline child support formula relies heavily on the financial disclosures provided in the Income and Expense Declaration. The amount of child support awarded is based on the income of both parents, as well as the time each parent spends with the child. This ensures that both parents contribute fairly to the financial well-being of their children.
Both spousal and child support are critical to ensuring that each spouse and any dependent children are supported during and after the divorce process. The Income and Expense Declaration ensures the court has all the relevant financial information needed to make informed decisions.
How to Complete an Income and Expense Declaration
Completing an Income and Expense Declaration may seem straightforward, but it is essential that the information provided is accurate, thorough, and truthful. Since the form is signed under penalty of perjury, any false information or omission of critical financial details can result in serious legal consequences, including contempt of court charges, loss of credibility, and potentially losing the case.
Here’s a general breakdown of how to complete the form:
Personal Information: This section asks for basic identifying information, including names, addresses, and case details (e.g., case number).
Income: You’ll need to list all income sources, including your salary, business income, rental income, investment income, and any other income streams. Be sure to include documentation such as pay stubs, tax returns, or proof of self-employment income.
Expenses: This section requires you to detail your monthly expenses, such as housing (rent or mortgage), utilities, transportation, food, healthcare, and child care. You should provide supporting documentation where necessary (e.g., credit card statements, utility bills, etc.).
Assets and Liabilities: You will need to list significant assets such as real estate, vehicles, and savings accounts, as well as any debts like mortgages, car loans, and credit card balances.
Spousal and Child Support Payments: If applicable, you’ll need to disclose any ongoing spousal or child support payments you currently make or receive from another marriage or relationship.
Additional Financial Information: You may also be asked to provide additional documents, such as your tax returns, bank statements, and proof of assets and debts. It is essential to attach all required supporting documents to avoid delays in processing your case.
The Consequences of Lying on an Income and Expense Declaration in Los Angeles Divorce Cases
The Los Angeles family court system takes financial disclosures very seriously. Lying on your Income and Expense Declaration, whether by underreporting income or inflating expenses, can seriously damage your credibility and impact your case. In the Los Angeles County family law system, judges are particularly attentive to honesty in financial matters, and any discrepancies could lead to severe penalties, including contempt of court charges and the loss of important legal rights or benefits.
Some common examples of dishonesty on an Income and Expense Declaration include:
Concealing Income: Underreporting or failing to disclose income is one of the most serious violations you can commit on this form. Whether you’re hiding income from a business, side job, or investment, the court will look for discrepancies.
Inflating Expenses: Some individuals may attempt to inflate their monthly expenses to make it appear as though they need more financial support than they truly do. This can be a serious mistake and will likely be discovered during the discovery phase or through cross-examination in court.
Withholding Documents: If you fail to provide required documentation, such as tax returns, bank statements, or proof of assets, the court may view this as an attempt to conceal financial information.
If you are caught lying or misrepresenting your financial situation, it can damage your credibility in the eyes of the judge and severely affect your case. California courts take perjury very seriously, and those found guilty of lying on their Income and Expense Declaration can face contempt charges and other penalties.
What Happens if You Suspect the Other Party is Lying?
In divorce cases, it’s unfortunately common for one party to lie or misrepresent their financial situation on the Income and Expense Declaration. If you suspect the other party is being dishonest—by underreporting income, inflating expenses, or withholding information—it’s important to take action.
While it may be difficult to know for certain if the other party is lying, there are several ways to investigate potential discrepancies:
Reviewing Documents: If the other party has provided financial documents (e.g., tax returns, bank statements), carefully review them for inconsistencies or missing information.
Discovery Process: During the discovery phase of divorce proceedings, you can request detailed financial documents from the other party, including tax returns, business records, and additional proof of income.
Depositions: You may also choose to depose the other party or their witnesses under oath, which can help uncover hidden income or expenses.
Issuing Subpoenas: Subpoenas can be issued to third parties, such as the other spouse’s employer, banks, or financial institutions, to uncover hidden income or assets.
Forensic Accounting: In cases involving complex finances, hiring a forensic accountant can help uncover hidden income or assets and verify the other party’s claims.
Your family law attorney can help guide you through this investigative process and ensure that your interests are protected.
Conclusion: Be Honest and Accurate on Your Income and Expense Declaration
The Income and Expense Declaration is a critical component of your divorce case. Whether you’re seeking spousal support, child support, or working through asset division, the information you provide on this form directly impacts your financial future.
It’s important to take your time when completing the form and ensure that all information is complete, accurate, and truthful. If you have any doubts about how to fill out the form or whether you should include certain information, consult with an experienced Los Angeles family law attorney.
Filing an accurate Income and Expense Declaration can not only prevent costly legal issues but can also ensure that your divorce settlement is fair and equitable based on your true financial situation. If you suspect your spouse is hiding assets or income, there are legal avenues to investigate further and ensure that all financial information is on the table.
—
Emily Rubenstein Law PC is a full service divorce and family law firm. We proudly serve Beverly Hills, West Hollywood, West Los Angeles, Santa Monica, Culver City, the South Bay, Glendale, Pasadena, Sherman Oaks, Studio City, Encino and all of Los Angeles County.
Give us a call or check out our website:
(310) 750-0827 | www.emilyrubensteinlaw.com
The Law Office of Emily E. Rubenstein is a full-service divorce and family law firm. We proudly serve Beverly Hills, West Hollywood, West Los Angeles, Santa Monica, Culver City, the South Bay, Glendale, Pasadena, Sherman Oaks, Studio City, Encino and all of Los Angeles County.
On your side,
Emily Rubenstein, Esq.
Founding attorney
You Might Also Find These Helpful
