Under California law, both parties in a divorce proceeding are required to exchange preliminary declarations of disclosure before they can execute a Marital Settlement Agreement. The purpose of this requirement is to ensure that both parties have full and complete knowledge of each other's assets and debts before they enter into a legally binding agreement.
The preliminary declaration of disclosure includes a list of all assets and debts, income and expenses, and other financial information that is relevant to the divorce proceedings. This information must be provided under oath and signed by the disclosing party.
Once the preliminary declaration of disclosure has been exchanged, the parties have a duty to update the information if there are any material changes before the Marital Settlement Agreement is executed. This requirement helps ensure that both parties have accurate and up-to-date information before they enter into a binding agreement.
If a party fails to provide accurate and complete information in the preliminary declaration of disclosure, it can have serious consequences, including the possibility of the Marital Settlement Agreement being set aside or invalidated.