What is the fiduciary duty of spouses going through a Louisville divorce? What obligation do former spouses have to one another from a financial perspective until the divorce is finalized?
If you are considering or going through a divorce in Jefferson County or Louisville it is important to understand the “fiduciary duty” you owe to your former spouse throughout the process. The papers sent to you by the Court (or provided by your attorney) remind you of the obligation married spouses have to one another – known legally as a fiduciary duty.
The fiduciary duty requires you to act according to the highest standards of “good faith” and “fair dealing” acting on the other person’s best interests in all financial matters such as financial transactions, as well as the care of marital property and the separate property of your former spouse. This extends to any transaction between you and your former spouse, as well as you and any external party.
You carry a fiduciary duty to your spouse in any transaction, decision, management or control associated with assets, money, accounts, or investments. If you own or manage a business interest you fully understand the implications of the fiduciary duty. You continue to owe your former spouse this duty until your assets are distributed at the end of the divorce process.
This fiduciary duty extends to the initial and final financial disclosures you are required to make to your former spouse during the divorce process. Kentucky law requires you to make an “immediate, full, and accurate” disclosure of all known marital and separate assets, debts and liabilities as well as a summary of your income and expenses.
If you violate the fiduciary duty of spouses going through a Louisville divorce you expose yourself to full restitution to the other party for the value (read: highest possible appraisal they can justify) of the asset or account, as well as any additional sanctions the Court may determine based upon the degree of your offense.
This is why it is so important to work with the experienced family law attorneys at Dodd & Dodd for your Louisville divorce. We have decades of experience in Louisville divorce cases and provide expert insight and guidance to our clients throughout the process. We work to accomplish your goals and objectives and protect your interests and invite you to contact us or call 502-584-1108 to schedule an appointment with one of our attorneys.