Madrid ( CNN ) -- Spain 's Princess Cristina faces preliminary charges in a financial corruption scandal involving her husband , Inaki Urdangarin , the office of investigating magistrate Jose Castro announced Wednesday . It 's the first time since democracy was restored in Spain in 1975 that a direct member of King Juan Carlos ' family has faced preliminary charges of any kind , in any case , a spokesman for the Royal Household said . Urdangarin , the king 's son-in-law , already faces preliminary charges as a suspect in the fraud scandal that has created unprecedented problems for the popular royal family . He denies any wrongdoing . Now , both the princess and her husband are under investigation for allegedly diverting public funds earmarked for a non-profit foundation for private use . Late Wednesday , the Royal Household issued a statement saying it was surprised that the judge -- who last year said in an order that there were insufficient grounds to name the princess as a suspect with preliminary charges in the case -- had changed his mind . In his 18-page order Wednesday , the judge said that further investigation since last year had led to the decision to bring preliminary charges . The Royal Household statement also said that it is in `` absolute conformity '' with an announcement by prosecutors that they will appeal the judge 's order to place preliminary charges on the princess . The Royal Household statement added that it maintains full respect for judicial decisions . Earlier Wednesday , the Royal Household press office tersely said that it does not comment on judicial decisions . But the story about the King 's daughter dominated the news in Spain and was getting prominent coverage abroad as well . Finally , the Royal Household opted for its statement late in the day , after the prosecutors announced their move , a senior spokesman told CNN . The judge 's order said Princess Cristina will be questioned on April 27 regarding `` the handling and destination of funds obtained '' through her husband 's foundation and also a separate company . Urdangarin was granted the title of Duke of Palma when he married Princess Cristina , the king 's youngest daughter , in 1997 . Judge Castro is leading the investigation at a local court in Palma de Mallorca , in Spain 's Balearic Islands . An adviser to the royal household also has been implicated in the scandal . Earlier this year , a judge ordered Urdangarin and a former business associate , Diego Torrres , to deposit a joint bond of 8 million euros ( $ 10.8 million ) for potential civil damages . If not , the judge would move to embargo the assets of the two men , a court spokeswoman said . No trial has been set in the case , which has riveted national attention . Although preliminary charges have been announced , they could eventually be dropped , but a filing of indictments would set a trial in motion .
NEW : Royal family issues statement about judge 's decision , will appeal . The scandal has riveted Spanish media . Comment: The couple is under investigation for allegedly diverting public funds .