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You will walk away with an idea of what choices you can make and what each different path would look like – whether or not you wish to pursue any action now.
We get it – divorces are overwhelming. Emotions are at an all-time high, and the other party may not be cooperating in the way you hoped they would. And now, you must go through the process of disclosing everything you owe and everything you own. Disclosing your assets is a long and tedious process and gathering all the paperwork and information can take weeks. Family law litigants are often tempted to cut corners here and there and not disclose a couple of assets. However, omitting assets can be catastrophic.
There is a well-known case in California called In re Marriage of Rossi (2001), 90 Cal.App.4th 34. This case should serve as a warning to you about what can happen if you do not disclose all your assets.
Denise and Thomas were married. In December 1996, Denise and a group of coworkers pitched $5 into a lottery pool. They ended up winning the lottery, and each person was awarded $1,336,000 to be paid in 20 equal annual installments. Denise claimed that she pulled out of the pool before the lottery was won and she was gifted her portion from the other pool members.
In January 1997, Denise filed for divorce. Thomas and Denise met with Denise’s attorney and Denise’s attorney gave them papers to finalize their divorce, including disclosure forms. In her disclosures, Denise did not reveal any of her lottery winnings, even though the settlement agreement clearly stated that both parties had disclosed all joint and separate property. The settlement agreement also detailed that if an asset was not disclosed, the other party may seek up to 100% of the fair market value of the asset. The settlement agreement was entered, and the parties were officially divorced in April 1997.
In May 1999, Thomas received a letter to his home asking if Denise was interested in a full buyout of her winnings. This was Thomas’s first time hearing about any type of lottery winning. He confirmed that Denise did in fact win the California lottery, so he promptly retained an attorney to set aside the settlement agreement.
The trial court found that Denise had intentionally failed to disclose her winnings (constituting fraud, oppression, and malice) and that she had breached her fiduciary duties to Thomas. The Court ended up awarding Thomas 100% of the lottery winnings. Denise tried to appeal the decision, but the 2nd District Court of Appeals affirmed the decision of the trial court.
Does this case surprise you? It shouldn’t. While this case does illustrate one of the more extreme stories of hiding an asset, it serves as a good reminder of how seriously courts take the disclosure process.
Remember, don’t be like Denise. Disclose ALL your assets.
If you have questions or need assistance with your case, consult an experienced family law attorney. Here at Cage & Miles, we have a dedicated team of attorneys who can help walk you through your divorce.
Contact our office today to schedule a free consultation!
