California’s FL-160 Form: Property Declaration

Divorce is often a stressful, fraught time for everyone involved. While emotions are typically high during divorce proceedings, your involvement as a legal professional can help provide certainty. One of the best ways to do this is by staying on top of all required paperwork well in advance. For California residents, this includes form FL-160.

Form FL-160 is a property declaration form that allows your client to declare both separate and community property. This form is used for division of property, ensuring that both parties receive what they’re legally entitled to, and what they’ve agreed upon, during divorce proceedings.

What is the FL-160 form?

The FL-160 form allows each party to declare their property during divorce proceedings. Through property declaration, the parties establish which assets or debts they’re entitled to, and vice versa.

The FL-160 form covers both separate and community property. Defining whether property is communal or separate plays a large role in the legality behind who is entitled to such property.

Community property is any asset or debt acquired during the marriage.

Separate property is any asset that’s acquired:

• pre-marriage
• post-marriage through inheritance or gift
• Following permanent separation

While the above situations are fairly clearcut, it’s worth noting any inheritance is considered separate, even if obtained during marriage.

When is the FL-160 form used?

The FL-160 form is used during divorce proceedings in California to determine which assets, debts, and property are legally entitled to which person. The form is used in most divorce proceedings, but especially so when there’s any kind of contention around who gets what.

Form FL-160 ensures fairness and transparency around property division during the divorce process. The FL-160 form makes it clear who is entitled to what and establishes sound legal ground for proceedings to move forward.

Why FL-160 is important

The FL-160 plays a vital role in California’s divorce process. Transparency and clear communication go a long way during a divorce, and can make things less stressful and more fair for everyone. This is where the FL-160 truly shines.

• Ensuring transparency: Simply put, the FL-160 establishes a clear, honest record of all assets and debts. This transparency makes proceedings fair and enables further discussions around distribution of property.
• Protecting client interests: The transparency provided by FL-160 acts as a safeguard for all involved parties. With an accurate FL-160, you can ensure assets and debts are distributed equally, or in a manner clearly agreed upon by everyone.
• Legal compliance: California law requires complete, transparent disclosure of assets, properties, and debts during a divorce. The FL-160 form is foundational to this, acting as a vehicle for total transparency and disclosure.

Again, divorce proceedings are often emotional, difficult periods for everyone involved. The transparency afforded by the FL-160 is not only part of a legality, but also goes a long way toward ensuring fairness for everyone.

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How to fill out form FL-160

The form FL-160 is similar to FL-150, which is used for income and expense declaration during divorce. And, fortunately, the FL-160 is fairly straightforward to fill out, requiring you to clearly lay out the community and separate property in detail.

Step 1: The form caption

First, you’ll complete the form caption. As the attorney, you’ll include your information at the top. Make sure you mark whether you’re the petitioner or respondent.

You’ll also want to check the boxes for any documents you’re including. These could include:

• Copies of additional FL-160 forms for other property types
• Income and Expense Declaration (FL-150)
• Tax returns filed by the party in the two years before the date party was served disclosure
• Statement of material facts and information regarding valuation for community property
• Statement of material facts and information regarding valuation for separate property
• Complete and accurate written description of income-producing opportunities presented since declaration was served

Note: You need to complete separate FL-160 forms for community property and separate property.

Step 2: Property declaration

Once you’ve completed the caption, it’s time to complete the property declaration itself. This is the meat of the form, takes the most time, and requires significant attention to detail.

At this stage you’ll see the following fields, which you’ll want to complete as accurately and succinctly as possible.

Brief description

After each item number, you’ll see a generic category. Find the category that best fits what it is you’re declaring.

Once you’ve found a category that fits, write a short description that accurately captures what the property is. If you can’t find an appropriate category, write “None.” Otherwise, write a brief description, like “Florida home” for property, or “Company 401(k) plan” under Retirement and Pensions.

Date acquired

For this section, simply write the date the property was acquired. Be as accurate as possible.

If the client can’t recall the exact date, indicate where it was purchased in the timeline of the marriage: before, during, or after.

Gross fair market value

In this section, you’ll indicate the item’s current value. In most cases, you can find the value through a reputable site or resource. If you’re running into a dead end, consult with a local expert who can provide as accurate a value as possible.

Amount of debt

Indicate whether either party owes any money on the item. Again, accuracy is key. When in doubt, have the client look up the account and determine the amount owed.

Net fair market value

You can determine the net fair market value by simply subtracting the debt from the gross fair market value. 

Proposal for division

In the final column, you’ll have two options: Award or Confirm to petitioner/respondent.

Clearly state how the property should be distributed between the two parties. Community property, per California law, must be distributed equally unless agreed upon otherwise. For separate property, equal division is not required.

Step 3: Debts

After the property declaration, you’ll need to lay out any debts. This part of the form is similar to the others, but contains a different set of columns. Once again, focus on being as accurate and succinct as possible when filling out these columns.

Debts – show to whom owed

Find the category that best fits the type of debt, and then write a brief description that identifies the debt and who is responsible for the amount. For example, under the student loan category, you could write, “Sallie Mae student loan (X’s name).”

For credit cards and other accounts, make sure you include a portion of the account number to identify the account. Similarly, you’ll want to identify vehicle make and model if there’s money owed on a vehicle.

Date incurred

Simply write the date the debt was incurred by the responsible party. When in doubt, refer to the original loan agreement to find the date.

Total owing

Write the amount still owed on the debt. Again, if there’s uncertainty, check the account itself for a current balance.

Proposal for division

Just like the previous part of the form, you’ll have two options: Award or confirm to petitioner/respondent.

Make your case for how you feel the debt should be divided. Division doesn’t have to be equal, per California law, as long as the debts and assets equal out or are otherwise agreed upon.

Key sections of form FL-160 explained

Every piece of the FL-160 is important, but there are a few sections that are absolutely crucial and deserving of additional attention.

Community property

Community property is any property that’s considered shared by default. This is most often any property acquired during the marriage, not before or after.

Some common examples include:

• Shared bank accounts
• Marital home
• Joint investment accounts
• Vehicles (regardless of name on the title)
• Jewelry

By California law, any community property is split evenly by default. Splitting community property in another manner is possible, but both parties must come to an agreement on it.

Separate property

Separate property is most commonly any property acquired before or after marriage. But, there are some exceptions.

Separate property can also include inheritance, whether financial or an asset/property. Military disability and social security payments are also separate property, as are gifts given to one spouse.

In the case of separate property, it typically goes to the spouse that owns it. It is possible for parties to reach an agreement in which separate property is divided up.

Asset and debt valuation

Accurate valuation of all assets and debts is key to a fair divorce settlement. Ideally, you can find the valuation on any documentation, especially where mortgages or loans are concerned.

When in doubt, there are resources you can consult. For vehicles, refer to the Kelley Blue Book. For jewelry, find a licensed professional who can appraise the jewelry and provide proof of valuation afterward.

If there’s any dispute over valuations, mediation and negotiations can usually resolve them. If necessary, bring in a licensed professional who can speak with authority on the value of the asset in question. 

Proposed distribution

Make a succinct, fact-based case for proposed distribution of assets. Rely on the law as much as possible, making it clear which property is separate versus community.

In any situations where your client wants to break from the standard 50/50 split of community property, clearly state why you feel your client feels this way. In the case of them wanting more than 50%, illustrate why it’s deserved or needed. 

For instance, if they’re a single parent and the other party was the primary income earner, illustrating the financial burden they’re going to be dealing with is a sensible route.

Common pitfalls to avoid when completing FL-160

The FL-160 form is fairly straightforward, but mistakes can happen. Keep an eye out for the following and you’ll ensure a smooth process for both you and your client.

Common errors

A number of common errors can occur when filling out form FL-160. These include:

• Omitting property or debts: Any property or debts that slip through the cracks can cause issues, as they won’t be properly addressed during the divorce proceedings. This can result in both parties being deemed owners, and further disputes.

• Misclassifying assets: Wrongly classifying an asset as community or separate property can delay divorce proceedings, escalate any conflict, and delay finalizing the divorce.

• Incorrect or inconsistent valuations: Any valuation issues can result in an unfair division of assets or debts. Again, this can either delay the divorce proceedings, or result in follow-up legal action.

Failing to provide documentation

Simply listing out assets and debts isn’t enough. Make sure you include proper documentation for each asset. The following are some forms of documentation to look out for:

• Bank statements
• Tax returns
• Mortgage deeds
• Investment portfolio statements

Once again, when in doubt, contact the appropriate certified appraiser for the property or asset. Then, obtain documentation from the appraiser that shows the value.

Overlooking deadlines

Deadlines can sneak up on you, especially when you’re dealing with numerous types of assets and debts. And missing a deadline can delay proceedings for all involved parties.

Stay ahead of deadlines by performing a quick initial inventory with your client. If there are any gaps, like uncertainty around a certain value, tackle those items first. Contact the appropriate appraiser or start your search for documentation as soon as possible.

Additional tips for lawyers handling FL-160

In a perfect world, the entire FL-160 process goes well. But, when the unexpected occurs, keep the following tips in mind.

• Collaborating with financial experts: Don’t be afraid to consult with outside help. A certified accountant, appraiser, or financial advisor can go a long way toward providing clarity when any questions arise.
• Effective communication with clients: Get as much information as possible from your client at the start of the FL-160. If you have any questions for them, or need outside help, let them know as soon as possible. Keep them in the loop every step in case questions arise, too.
• Staying updated on legal precedents: Always stay up to date with legal precedents and changes in property laws. This will help you avoid any ugly surprises in the future.

Final thoughts: California’s FL-160 Form (Property Declaration)

Ideally, every divorce results in fairness for both parties. While this isn’t always the case, the FL-160 plays a vital role in fairness and transparency. With an accurate completion of form FL-160, both parties are putting everything out there and opening the floor for further negotiations.

Just as is the case with any common legal forms, FL-160 requires patience and attention to detail. When in doubt, consult with experts who can fill in any knowledge gaps. With time and effort, you can have your client positioned for a transparent, fair divorce proceeding.

Categorized in: California Legal Forms