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When people whose marital estate is of high value are contemplating a divorce, there is much to consider and many steps that need to be avoided. Costly mistakes can be made prior to a California high asset divorce, and anyone who is wondering how they should handle certain assets should seek the immediate input of San Diego divorce lawyers as soon as possible. Below is a brief introduction to a concept known as the fiduciary duty and how it relates to decisions that could be made prior to a divorce.
A fiduciary duty is basically a legal doctrine that binds one party to another in terms of avoiding conduct that is intended to harm their interests. This fiduciary duty typically arises in situations involving business relationships and the handling of money or proprietary interests, but California law also imposes a fiduciary duty on spouses such that they would breach this duty by making decisions and taking actions that would harm the other spouse. This situation typically arises when a California high asset divorce is in the offing.
If you are considering transferring some of your assets to a third party or somewhere else because you are certain that a California high asset divorce is about to be filed, you need to tread very carefully. Courts view breaches of the fiduciary duty very seriously and harshly when such actions are proven, and transferring community property away from the marital estate so that it can be hidden from the forthcoming community property division could lead to costly consequences if the other party proves that this has occurred.
If you have assets that may or may not have become part of the community property marital estate and you want to make sure that you are able to take them with you after the property division of the divorce is complete, you need to understand ahead of time what type of transfers are allowed and what types are not. Simply moving forward with the transferring of assets could lead to serious problems, as the court could award the other spouse additional assets and force the violating party to pay attorney’s fees.
Therefore, the best way to proceed in this situation even if the divorce case has not yet been filed is to seek the advice of San Diego high asset divorce attorneys from Scott Family Law who understand the nuances of the fiduciary duty and California community property norms. This will allow you to obtain a clear understanding of what types of assets could be seen as separate property and what types could be viewed as community property.