Full Financial Disclosure & California Divorce
An experienced Orange County divorce lawyer can save you from making huge blunders that can cost you fortunes. In 2007, the issue of full financial disclosure was brought back to life with the appellate divorce case, In re Marriage of Feldman. The story comes about after the breakup of the 34 year marriage of Aaron Feldman & Elena Feldman. As a businessman Aaron didn’t disclose all for his assets and financial transactions to Elena in spite of her repeatedly requesting such information. Critical information with held included the formation of several new businesses which Elena learned about before the trial divorce. This led her into starting her on investigation. Any knowledgeable Orange County divorce attorney would have highly suggested that Mr. Feldman practice full disclosure when it came to his assets.
For his defense, Mr. Feldman claimed that information wasn’t withheld intentionally, but the assets were of small value. This defense was rejected by the California Court of Appeals, stating it was the responsibility of Aaron Feldman to disclose everything to Elena Feldman until all assets are divided up.
After all was said and done the court ruled in favor of Mrs. Feldman and decided that Mr. Feldman was to pay his wife $250,000 in sanctions for failing to supply her with the requested information, and $140,000 for her attorney fees. This lead to sanctions of the California Family Law Code as it relates to fiduciary duty.
This has set a precedent that could affect divorces to come in California. The bottom line is- do not hide important financial information from your spouse unless you are ready to pay for the consequences.
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