Helping Parties to Divorce Sort Out Fiduciary Duties
Once you and your spouse decide to separate, you and/or your spouse have important fiduciary duties to each other, and failure to observe those duties could result in significant financial sanctions imposed by the court. A knowledgeable divorce lawyer can help you protect yourself from liability or evaluate your spouse's compliance.
At Law Office of Melissa D. Cianci, in Roseville, we are familiar with the fiduciary duties that spouses have under California law, and we can help you understand your rights and responsibilities. Contact us to schedule a consultation with a skilled divorce attorney.
Complying With Fiduciary Duties to the Community
Under California community property law, until the division of property is finalized in a divorce or legal separation proceeding, the married couple is considered to be a "community," which in many ways resembles a business partnership.
Just as a business partner owes certain fiduciary duties to the partnership as a whole (i.e., the other partners), each spouse owes fiduciary duties to the community (i.e., the other spouse).
In the divorce context, the most important fiduciary duty is the duty to disclose all assets or liabilities, whether they are community property, quasi-community property or separate property. This duty includes a duty to promptly notify the spouse of any material changes to that information.
Understanding the Consequences of a Breach
The topic of fiduciary duty has become prominent in California recently due to the substantial sanction that was imposed in the highly publicized case of In Re Marriage of Feldman. In light of that decision, it is very important for parties to a divorce to accurately disclose their assets and liabilities and to monitor their spouses' compliance.
Even if the spouse discovers hidden or inadvertently undisclosed marital assets through some other means and is therefore not financially harmed by a breach of the fiduciary duty, a sanction can be imposed. Don't hesitate to contact us to discuss the implications of fiduciary duty laws for your divorce.
