In California, parties to a divorce must “lay all their cards on the table,” so to speak, regarding all of their assets and debts. While parties may try, there are no secrets as to property when you file for divorce. In fact, full and accurate disclosure of all assets and debts is a required step in every divorce action. This is because spouses are in a fiduciary relationship with each other which imposes a duty of the “highest good faith and fair dealing on each spouse, and neither shall take any unfair advantage of the other.”
Imagine a marriage is like a business. Each spouse (or business partner) has a right to know the financial status of the marriage (or business). The duty of “highest good faith and fair dealing” imposes an obligation upon each spouse to fully disclose to the other all information about “community” assets and debts for which the community may be liable.
