Separation changes many aspects of a marriage, but it does not immediately eliminate every financial duty between spouses.

During a California divorce, spouses continue to owe important fiduciary duties concerning property and financial information. These obligations can continue after separation and, for certain property, until the asset or liability has actually been divided.

Understanding these duties is especially important when one spouse controls a business, investment, account, or other community asset.

What Is a Fiduciary Duty Between Spouses?

A fiduciary relationship requires spouses to deal with one another according to heightened standards concerning their financial interests.

During the divorce process, these duties include accurate and complete disclosure of assets and liabilities and relevant information concerning earnings, accumulations, and expenses.

The duty is not satisfied simply by providing information once and ignoring later developments.

When material information changes, spouses can have continuing obligations to update or augment previous disclosures so the other party has accurate information before entering an agreement or proceeding to trial.

Spouses must also provide access to relevant financial books and records in circumstances covered by these duties.

Business and Investment Opportunities Can Matter

The disclosure obligation can extend beyond property already sitting in a bank account.

The source materials address investment, business, and other income-producing opportunities arising after separation when the opportunity results from certain investments or business activities occurring during the marriage.

When disclosure is required, it must be made early enough for the other spouse to make an informed decision concerning participation and, if necessary, for the court to resolve a dispute about the opportunity.

The operation or management of a business in which the community may have an interest can also fall within the spouses’ continuing fiduciary responsibilities.

This can be particularly important when one spouse has substantially greater access to the company’s financial information.

The Duty Can Continue After the Divorce

A final divorce judgment does not necessarily eliminate fiduciary obligations concerning every unresolved asset.

The source materials explain that the duty of good faith can continue beyond separation and even beyond dissolution when community property remains undivided. Fiduciary duties concerning an asset or liability generally continue until that particular property has actually been distributed.

This is an important distinction when a judgment leaves an asset to be divided or transferred at a later date.

Simply obtaining a divorce judgment does not necessarily give one former spouse unrestricted authority over property that remains subject to division.

Financial Transparency Remains Important During Divorce

Separation may end the marital relationship, but spouses should not assume that it immediately ends their responsibilities concerning community finances.

Managing community assets, making significant transactions, operating a community business, and providing financial information can remain subject to continuing duties.

Maintaining complete records and communicating material financial information can therefore remain important until the relevant property issues have actually been resolved.