What is the fiduciary duty of each spouse during a Louisville divorce? What is a fiduciary duty and how can this impact the outcome in your divorce case?
From a legal standpoint, Kentucky family law establishes this fiduciary duty as the legal responsibility to conduct all financial affairs, make accurate and full disclosures and generally act in each other’s best interest until the final decree in your divorce. The fiduciary duty requires each spouse to exercise the highest legal standard of “good faith” and “fair dealing” in all financial matters.
This standard applies to all financial matters associated with your divorce, including but not limited to the disclosure, handling of all joint or separate bank accounts (established before the date of separation), transactions, the management of credit cards, retirement accounts and pensions, investments, property, collections, and ownership interests in a business or professional practice.
The fiduciary duty of each spouse during a Louisville divorce extends to ensuring access to important financial records such as tax returns, credit account statements, business records, financial records, retirement account and pension statements, including the right to inspect these records and make copies or electronic images of those records.
Former spouses are required to be accountable to each other as “trustees” regarding any profit, income or benefit realized by either or both of the spouses, even without the consent or knowledge of the other spouse if the income, profit or asset is marital property under Kentucky law. This applies to everything from tax refunds to lottery winnings and everything in between.
The ffiduciary duty of each spouse during a Louisville divorce require each party to make a full, honest, transparent and accurate disclosure of all assets and debts. It may surprise you to learn that each of the former spouses continues to owe the other this fiduciary duty until the date the divorce is finalized, including all marital and separate property.
Just as the legal standard between business partners, spouses owe each other a fiduciary duty associated with the management of the separate property of each spouse (such as inheritance proceeds or real property).
What happens if one of the former spouses violates their fiduciary obligation to the other? The Court takes a dim view of attempts to conceal property, assets or income. Falsified disclosures or manipulated accounting or unfair business practices can and will have a substantial and costly impact on the violator. This can be applied to the equitable division of marital assets and debts, as well as other aspects of your divorce, including but not limited to child custody and visitation, child support and spousal support or maintenance.
It is important to understand your legal responsibilities before and during the process of a divorce here in Louisville and throughout Kentucky. How will the fiduciary duty affect the process and conduct of your divorce? Are you concerned about the actions, candor or honesty of your former spouse? How will you protect your interests?
We invite you to review the strong recommendations of our former clients and the legal industry and contact Dodd & Dodd or call 502-584-1108 to schedule an appointment with one of our attorneys.
