Colorado Rules of Civil Procedure 16.2: What does it mean for your case?
If you file a motion in domestic court, you will most likely be told to
create a financial affidavit and comply with Colorado Rules of Civil Procedure
(“CRCP”) 16.2 disclosures. CRCP 16.2 applies to all domestic
relations cases. The purpose of CRCP 16.2 is to create a uniform procedure
used to resolve issues involving financial disclosures in domestic relations cases.
CRCP 16.2(e) requires both parties in a domestic case to provide a full
and honest disclosure of all facts that materially affect the parties’
financial rights and interests in the case, in addition to the financial
interests of the children involved. Both parties are required to disclose
all material facts and information without requiring the other party to
submit a request for the information. If a party knowingly fails to provide
all the required information, they may be subject to sanctions, including
the possible re-distribution of property after the final decree has entered.
CRCP 16.2 sets out specific mandatory disclosures required in CRCP Form
35.1, including copies of taxes, bank statements, items showing or supporting
values of all assets and debts, and items showing or supporting all forms
of income. It also lists items that would be necessary for computation
of child support, such as documentation of insurance, child care, and
It is important to note that the items listed in Form 35.1 are not exhaustive.
Merely complying with the production of disclosures laid out in Form 35.1
will not protect the providing party from incurring sanctions for failure
to disclose in the future. CRCP 16.2 requires that
all material information be disclosed whether or not it has been specified
in Form 35.1.
Examples of material information not listed in Form 35.1 include trust
fund payments, annuities, and stipends. The blanket rule for CRCP 16.2
disclosures is to provide everything that could have a material effect
on the parties’ rights and interests – namely
any assets, debts, and all forms of income.
In addition to the disclosures required by Form 35.1, parties must provide
a completed sworn financial statement (Form 35.2), which is documentation
of a party’s income, assets, debts and expenses. If applicable,
the completing party must also provide a supporting schedule (Form 35.3),
listing stocks, bonds, retirement accounts and other specific assets.
In addition to filing the sworn financial statement and supporting schedule,
parties must complete and file a certificate of compliance with the court.
The certificate of compliance signifies the party has provided a complete
and accurate disclosure of all material facts and information to the best
of their knowledge and abilities.
If a party fails to comply with CRCP 16.2 and does not provide complete
and accurate disclosures, the court has the authority to sanction the
non-compliant party. Such sanctions may include the reallocation of material
assets or liabilities even after the final decree or judgment has been entered.
In 2005, a five-year look back provision in CRCP 16.2 took effect. The
five-year look back provision applied to Colorado Courts continuing jurisdiction
over property division for five years after the entry of the final decree
or judgment. It allowed them to allocate marital assets or liabilities,
the omission or non-disclosure of which materially affected the original
allocation of assets and liabilities.
CRCP 16.2 is an important aspect of every domestic case and failing to
comply with CRCP 16.2 can have serious and lasting effects for the non-compliant party.