Breach of Fiduciary Duties
Addressing Your Ex-Spouse’s Breach of Their Fiduciary Duties
California courts have a number of powerful remedies to address breaches of a spouse’s fiduciary duties.
Schedule a Free ConsultationFiduciary Duties Owed by Spouses
The Family Code details the important fiduciary duties of good faith, fair dealing and transparency that each spouse owes as it relates to the management of community property. These duties stem from the confidential and intimate relationship of the spouses, and are implicated in all things community property, from the maintenance of financial accounts to the full disclosure spouses must provide in a divorce or legal separation case. A spouse’s fiduciary duties prohibit the following:
- Transferring or encumbering community property without the other party’s consent.
- Concealing assets or income in a party’s financial disclosures.
- Mismanaging or wasting community property resources.
- Failing to account for the management of community property assets.
Remedies for a Breach of Fiduciary Duties
Under Family Code Section 1101, the consequences of a fiduciary duty breach are significant:
50% of Undisclosed Community Property
In cases where a community property asset was undisclosed, the court has the power to make post-judgment orders dividing the community property interest amongst the parties.
Attorney Fees and Costs
In cases where a fiduciary duty breach has occurred, the offending party will be responsible for the other party’s attorney fees and costs expended to address the issue.
100% of Undisclosed Community Property
When the court finds that an asset was undisclosed due to fraud, oppression or malice, the court can award the entire asset to the other party.
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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
Fiduciary Duty Claims: Frequently Asked Questions
Do I have to prove fraud to win on this claim?+
No, evidence of fraud, oppression or malice is only necessary to qualify for the heightened penalty of Civil Code Section 3924.
Can I bring this during my divorce, or only after?+
Both. The statute applies during the marriage, during a pending dissolution, and after a judgment.
What is the statute of limitations?+
Three years from discovery of the breach for most fact patterns, with discovery rules that favor the harmed spouse. The clock runs differently for fiduciary claims than for set-aside motions under section 2120; figuring out which clock applies is the first analytical step.
Can I get the other side to pay my attorney fees?+
Yes if you establish a breach. Section 1101 includes statutory fee shifting against the breaching spouse.
What if I signed the judgment knowing something was off?+
Defend Your Rights
If you have reason to believe your spouse hid, transferred, or impaired community property, a 60-minute strategy session is the right place to find out whether section 1101 is in play.
Schedule a Free Consultation