Dissolution Judgment includes "breach of fiduciary duty" - is
Posted: Tue Dec 06, 2011 5:47 pm
In re Stanifer (attached), a 9th Cir. BAP case holds that under Cal. Fam.
Code section 721, spouses are fiduciaries within the meaning of 523(a)(4).
However, I am curious about some of the language of Cal. Fam. Code section
2102 which states that the fiduciary relationship exists "from the date of
separation to the date of the distribution of the community or
quasi-community asset or liability in question . . . ." Does this mean,
then, that the fiduciary relationship does not exist *during* the
marriage? I don't understand. If that's the case, then if the dissolution
order says that the spouse expended $200,000 community funds during
marriage, and $150,000 in community funds AFTER separation, does that mean
that there is only a breach of fiduciary duty as to the spending of the
funds that occurred after separation? I am sure that doesn't make sense.
Does Fam Code section 721 apply to the fiduciary relationship "during
marriage", while 2102 applies to the fiduciary relationship after
separation? Any family law attorneys out there who can help me read this
statute? Thanks.
Holly Roark
On Tue, Dec 6, 2011 at 3:22 PM, Holly Roark wrote:
> Has anyone dealt with this issue: Debtor has a judgment against him in
> family court where he is ordered to pay "equalization payments" of $350K to
> the ex-spouse. In the paragraph above, the Order says that the court finds
> that the debtor breached his fiduciary duty to the ex-spouse to the extent
> of $260,000. 523(a)(4) says that breach of fiduciary duty is excepted from
> discharge, and 1328(a)(2) includes (a)(4) as an exception to discharge in a
> chapter 13. Question: is "breach of fiduciary duty" as referred to in
> California family law the same thing that the Code contemplates as a
> "breach of fiduciary duty" in these Code sections? I am happy to do the
> case research, but if anyone who has previously dealt with this issue can
> point me in the right direction to start me off, I would appreciate it.
>
> --
> Holly Roark
> holly@roarklawoffices.com
> www.roarklawoffices.com
> Central District of California
> Consumer Bankruptcy Attorney
> 1875 Century Park East, Suite 600
> Los Angeles, CA 90067
> T (310) 553-2600
> F (310) 553-2601
>
>
>
Holly Roark
holly@roarklawoffices.com
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
In re Stanifer (attached), a 9th Cir. BAP case holds that under Cal. Fam. Code section 721, spouses are fiduciaries within the meaning of 523(a)(4). However, I am curious about some of the language of Cal. Fam. Code section 2102 which states that the fiduciary relationship exists "from the date of separation to the date of the distribution of the community or quasi-community asset or liability in question . . . ." Does this mean, then, that the fiduciary relationship does no
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