California’s FL-142 Form: Schedule of Assets and Debts

Dividing up property can be one of the most stressful aspects of going through a divorce or legal separation. And this is why, as an attorney, it’s crucial to ensure all legal paperwork regarding your client’s assets and debts is filled out accurately and filed with the court in a timely manner.

In the state of California, this often includes form FL-142: Schedule of Assets and Debts, a critical financial disclosure document that is required by law whenever divorce proceedings involve the division of property.

In the following guide, we’ll help you gain a better understanding of what form FL-142 is, when it’s required, what information needs to be included, and how the form should be filled out, line-by-line.

What is form FL-142 and when is it required?

In California, the FL-142 form, or Schedule of Assets and Debts, is a legal document intended to itemize all shared and individually owned assets as part of a divorce or legal separation, and is required whenever such proceedings involve the division of property and/or debt.

Form FL-142 is filed by the petitioner (the spouse filing for divorce or separation), and must be served to the other spouse (the respondent) within 60 days of the initial filing.

Upon receiving a FL-142 form, the respondent will have 60 days to submit their own disclosure of assets and debts. Critically,  the FL-142 form should be filled out in exhaustive detail, and should include both assets and debts that the petitioner declares as their own property (separate property), as well as those the spouses own together (community property).

What information is required when completing form FL-142

Form FL-142 will include a comprehensive list of all assets and debts held by both parties at the outset of the divorce or separation filing. For each item, the petitioner must also submit the current fair market value or outstanding balance, as well as clearly differentiate between community property and separate property.

Additionally, the petitioner must attach all relevant documentation needed to prove and provide additional information about ownership, i.e., the deed to a house, receipts for purchases, etc.

Examples of assets:

• Real estate
• Vehicles
• Jewelry
• Furniture
• Appliances
• Bank accounts
• Retirement and pension accounts

Examples of debt:

• Mortgages
• Student loans
• Credit card/personal loan debt
• Child support

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Understanding assets and debts in form FL-142

Being thorough and accurate when filling out FL-142 is incredibly important and requires, among other legal knowledge, a clear understanding of the difference between assets and debts in the context of a divorce or legal separation.

Assets include any property owned by each party or both parties together, such as real estate, vehicles, and bank accounts.

Debt will typically be any item or loan with an outstanding balance, such as a mortgage, student loan, or credit card.

In addition to appropriately drawing this distinction, attorneys must also ensure all information related to each item is outlined in detail on the form, including but not limited to physical description, date acquired, current gross fair market value, and amount owed (if any).

Beyond ensuring accuracy, attorneys must approach form FL-142 with patience and an understanding of both the importance of filing this information correctly and the emotional weight of what their clients are going through.

More specifically, not only is the completion of form FL-142 daunting for the client, if only due to the sheer scope of information required, but it’s also consequential in that it can be used by the court to make other important decisions, including key rulings around child and spousal support.

How to fill out form FL-142: Instructions

California’s Schedule of Assets and Debts form (FL-142) presents as a four-page document (get it here), and it can be filled out by the petitioner and/or the petitioner’s attorney. (If the attorney is filling out the form on the petitioner’s behalf, they must also include their own details and signature on the form.)

At the top of the first page, fill out all identifying details and contact information, being sure to list the divorce case number and identify both the petitioner and respondent, as well as the attorney (if applicable).

Here are additional item-by-item instructions for completing the form:

Form FL-142 items 1-19: Assets

For items 1-17, the party must list all known assets in the following categories, indicating the date each was acquired, its current gross fair market value, amount of money owed or encumbrance on the asset, and whether it is separate or community property:

• Real Estate
• Household Furniture, Furnishing, Appliances
• Jewelry, Antiques, Art, Coin Collections, etc.
• Vehicles, Boats, Trailers
• Savings Accounts
• Checking Accounts
• Credit Union, Other Deposit Accounts
• Cash
• Tax Refund
• Life Insurance with Cash Surrender or Loan Value
• Stocks, Bonds, Secured Notes, Mutual Funds
• Retirement and Pensions
• Profit-sharing, Annuities, IRAs, Deferred Compensation
• Accounts Receivable and Unsecured Notes
• Partnerships and Other Business Interests

For items 18 and 19, the party will list the total number of assets identified on the continuation sheet (if applicable) before printing the total value of all assets listed on the form.

Form FL-142 items 20-26: Debt

For items 20-24, the party must list all known debts in the following categories, indicating the date each was incurred, the outstanding balance, and whether it is separate or community property:

• Student Loans
• Taxes
• Support Arrearages
• Unsecured Loans
• Credit Cards
• Other Debts

For items 25 and 26, the party will list the total number of additional debts identified on the continuation sheet (if applicable) before printing the total value of all debt (money owed).

Common mistakes to avoid when filling out form FL-142

Dividing up property fairly is bound to be one of the most important things for a client going through a separation, which makes it that much more critical to avoid missteps when filling out and filing FL-142. Here are some common mistakes to look out for:

Skipping items. Patience is paramount when taking an inventory of assets and debt. While the process will likely be both physically and emotionally exhausting for the client, leaving an item blank could result in lost assets or otherwise negatively impact the outcome of the proceeding.

Incomplete information. Similarly, attention to detail is pivotal when dividing up assets and debts as part of a divorce. When filling out form FL-142, be sure to follow instructions closely and double-check that you’ve included all required legal documentation for each item.

Not updating items. Divorces and legal separations don’t typically happen overnight, and there’s a good chance that your client’s financial situation may change leading up to the proceeding. To avoid potential issues, make sure to confirm the accuracy and completeness of all information listed on form FL-142 throughout the process, updating items whenever appropriate.

Final thoughts: Filing the Schedule of Assets and Debts form (FL-142)

As required by family law in California, understanding and filling out form FL-142 accurately and efficiently is essential for attorneys working in the state to facilitate a fair, frictionless division of assets and debt for their clients during a divorce. However, much like other common legal forms related to marital separation, filling out this form can be unnecessarily stressful and time-consuming, which is why attorneys today are increasingly leveraging tools like Clio Draft for legal document automation.

Whether by using its intelligent auto-fill features or wide range of reusable templates, Clio Draft is helping family lawyers to not only cut down on document drafting time by up to 80%, but also to increase their confidence in reducing delays and proactively mitigating the possibility of costly errors.

Categorized in: California Legal Forms