California Family Code 721

California Family Code 721 Attorney

Marriage is not only the formalization of a committed relationship, but it is also a binding legal contract between the marrying spouses that entails various terms and conditions. California Family Code 721 is an important Code section that applies to the financial responsibilities marriage entails. If you are recently married in California, it is important to understand how California Family Code 721 applies to you and your spouse’s financial transactions.

Understanding California Family Code 721

A marriage is a formal legal contract, and the family laws of California set forth the rights and responsibilities every married spouse has to their partner. California Family Code 720 establishes the responsibilities of honesty, fidelity, and mutual respect required in marriage, and California Family Code 721 expands on this to include financial matters. There is an expectation for married spouses to work as business partners when it comes to important financial decisions.

Under this Code section, married spouses are not only required to consult with one another regarding significant financial transactions but they are also prohibited from making important financial decisions without their spouse’s consent or knowledge. This Code section aims to prevent married spouses from taking financial advantage of one another and to ensure that financial disclosures in divorce are complete and truthful.

Marriage is a formal and confidential relationship that imposes the same fiduciary duties upon the married spouses that nonmarital business partners typically have. Each spouse must provide access to their financial records for the purpose of inspection or copying, and they are also required to provide full and true information about anything that concerns the couple’s community property. There is no strict requirement for them to keep books, however.

California Family Code 721 also prevents a married spouse from hiding the proceeds or profits from any transaction that would qualify as community property. They are also prohibited from maintaining secret accounts. While it is possible for a violation of California Family Code 721 to cause problems within a marriage, violations of this Code section are most often brought to light in divorce proceedings.

Financial Requirements of Divorce

When a married couple decides to divorce in California, one of the most contentious aspects of their divorce case is likely to be property division. California law upholds the community property rule, so all property deemed marital property is subject to strict 50/50 division in divorce. Both divorcing spouses will be required to submit financial disclosure statements to the court as part of their divorce proceedings. It is important to know that the fiduciary duty under California Family Code 721 does not end when a couple separates. The duty continues throughout the divorce process and terminates only when the community property has been fully divided by court order or agreement.

An experienced family law attorney is the ideal asset to have on your side for your impending divorce, especially if you have any concerns that your soon-to-be ex-spouse has violated California Family Code 721. In Orange County, fiduciary duty breach claims are heard in the Orange County Superior Court, and they require prompt action. Your attorney can help address any such issues and guide you through your divorce proceedings. ensuring you receive a fair outcome from the property division process.

Experienced Legal Help with Fiduciary Duty Violations in Orange County

The founding attorneys at Quinn & Dworakowski, LLP, are Certified Family Law Specialists by the California Board of Legal Specialization. Our firm has handled complex fiduciary duty disputes, including hidden asset cases and contested financial disclosure proceedings, for clients in Orange County. If you suspect your spouse has violated California Family Code 721, time matters. Contact us today so we can help you understand your rights and protect your share of community property.

Remedies for a Breach of Fiduciary Duty

If a court finds that one spouse has breached the fiduciary duties imposed by California Family Code 721, several remedies are available to the non-breaching spouse. Under California Family Code Section 1101, the court can:

• Award 100% of an undisclosed or improperly transferred asset to the non-breaching spouse
• Order a complete accounting of all community property and obligations
• Award attorney fees and costs to the non-breaching spouse
• Order a new division of assets to correct the imbalance caused by the breach
• Hold the breaching spouse in contempt of court

FAQs

Q: What Is California Family Code 721?

A: California Family Code 721 pertains to the fiduciary duties married spouses have to one another. This Code section enables either spouse to engage in financial transactions with one another or with any other parents that they would be able to conduct if they were unmarried. Code section 720 sets forth the requirements of respect, fidelity, and support in a marriage, and California Family Code 721 expands on this to apply to fiduciary duties in a marriage.

Q: Why Is California Family Code 721 Important?

A: California Family Code 721 is important in two major ways. First, it enables either spouse to engage in financial transactions as if they were unmarried, meaning their marriage does not prevent them from pursuing financial opportunities. Second, it ensures the highest levels of good faith and fair dealing, establishing a fiduciary duty between the spouses that neither may ignore or violate. California Family Code 721 violations can lead to severe penalties.

Q: What Is a Fiduciary Duty?

A: A fiduciary duty is a legal obligation requiring a person to act in another’s best financial interests. Under California Family Code 721, married spouses owe each other a duty of the highest good faith and fair dealing. They must give each other access to financial records, provide full information about community property, and account for any profit from a transaction involving community assets taken without the other spouse’s knowledge. The law does not require either spouse to keep detailed books and records, only to provide access to any records that do exist.

Q: What Is Financial Disclosure in Divorce?

A: The financial disclosure process in divorce is the formal process of the divorcing spouses submitting their financial records to the court for the purposes of property division. Under California’s community property law, divorcing spouses must split their marital property evenly, with each spouse receiving an entirely equal share. Attempting to hide assets or keeping hidden records would violate California Family Code 721 and possibly result in contempt of court.

Q: What Are Common Violations of California Family Code 721?

A: Common violations of California Family Code 721 include keeping secret financial records from a spouse, engaging in a financial transaction without the other spouse’s knowledge or consent, or knowingly taking financial advantage of a spouse. If you suspect that your spouse has violated California Family Code 721, it is vital that you consult an experienced family law attorney as quickly as possible.

Q: Does the Fiduciary Duty End When We Separate?

A: No. The fiduciary duty imposed by California Family Code 721 does not end at separation. It continues throughout the divorce process and terminates only when all community property has been formally divided by court order or mutual agreement.

The attorneys at Quinn & Dworakowski, LLP, have extensive experience handling family law matters for clients throughout California, and we know that California Family Code 721 can be confusing. Whatever your situation may entail, our firm is confident that we can address your current problem and provide valuable guidance that helps you better understand your options. Contact us today to learn more about how we can help resolve your case.

Facing a fiduciary duty issue in your California divorce? Call Quinn & Dworakowski, LLP today at (949) 660-1400 or schedule a consultation online.