Recently, a California Court of Appeals ruled that parents have no duty to proactively disclose any changes in their income or financial situation after a final order has been entered in their divorce or other family law case. The case means that parents who wish to compel their child's other parent to inform them of any financial changes must file a child support modification petition against them.

The ruling stemmed from a child support order that was entered in California in 2005, which instructed the father of three children to pay $8,500 per month for the support of his children, reducing to $4,000 when there was only one minor child remaining. In 2007, the mother filed a petition for enforcement and modification of the order, seeking an increase in child support.

In response, a family court judge found that the father had "engaged in conduct that unnecessarily prolonged litigation" and breached his fiduciary duty. The father's child support obligation was then increased to $18,000 per month. The father subsequently filed an appeal.

While the Court of Appeals upheld the child support order, it reversed the sanctions imposed against the father. The justices found that the duty of continuing disclosure of income and finances does not apply after all of the details of a divorce have been finalized.

Specifically, the court stated that California law "does not impose on divorced parties a continuing fiduciary duty to disclose all material facts regarding a party's income after a final custody and support order has been entered."

Source: Metropolitan News-Enterprise, "C.A. Limits Duration of Duty to Disclose in Child Support Cases," Kenneth Ofgang, Jan. 6, 2012