Omitted Assets
Divide Omitted Assets in Your Divorce or Legal Separation Judgment.
Both spouses have the right to request the division of community property assets and debts that weren’t addressed or divided in the judgment.
Schedule a Free ConsultationDefining Omitted Assets
It’s not uncommon for divorce and legal separation judgments to leave out an important community property asset. Sometimes this is due to a failure to disclose the asset or an active deception. In these cases, the court may conclude that a spouse has breached their fiduciary duties and divide the asset and penalize the offending spouse by ordering them to pay attorney fees and/or a sanction, or financial penalty.
Even in cases where there is no provable breach of duty, the court will always have jurisdiction, or power, to divide an undivided community property asset.
Common Scenarios
A retirement account from a prior employer was mistakenly left off the parties’ financial disclosures.
Restricted stock units or deferred compensation that only vested after the date of separation.
A bonus or commission that was received only after the date of separation but related to work performed prior to the date of separation.
A small business interest that was unappreciated at the time of the divorce proceedings.
Real estate owned jointly with a relative or held in trust that was overlooked in the parties’ disclosures.
A financial account that was closed after separation but before the parties’ financial disclosures were finalized.
Family Law Representation Available in All California Counties
About Dan
Dan Sweeney
20+ Year California Family Law Attorney | Extensive Experience Handling Complex Cases
Former Manager of the San Diego County Superior Court Family Law Facilitator’s Office
Convenient, Remote, Video Conference Sessions Across California
Omitted Assets: Frequently Asked Questions
What if the asset was disclosed but not divided in the judgment?+
That would still qualify as an omitted asset under Family Code Section 2556. Disclosure doesn’t adjudicate the asset, and the court will still have jurisdiction, or power, to divide it now.
What if the other spouse claims the asset is separate property?+
That would be a characterization question that the court would also have to address. Generally, assets obtained during the marriage are presumed to be community property. If the other party claims the asset is their separate property, they’ll have the burden of proving that by tracing the asset to a separate property source.
How long do I have to make this request?+
Family Code Section 2556 has no fixed statute of limitations, but delay can make evidence harder to obtain and create a potential equitable defense in the claim of laches. It’s always best to move forward as quickly as possible.
Do I need the original preliminary and final declarations of disclosure?+
Your original disclosures will be helpful, but not essential.
What if the asset has changed value substantially since the judgment?+
California applies the same community property rules to the post-judgment division as would have governed the original division. Appreciation and depreciation are addressed under standard frameworks (Brown, Moore, Pereira/Van Camp depending on the asset type).
Help Dividing Your Omitted Asset
If there’s a community property asset that was not specifically divided in your divorce or legal separation judgment, let’s talk about your options.
Schedule a Free Consultation