Receiverships are underutilized in divorces. As a result, assets may disappear or lose their value before they can be divided.
Threats to remove property, sell property, or transfer property often occur during a divorce. This is not automatically the grounds to request a receiver. However, when one spouse has indicated their intention to leave California, if assets are disappearing, concealed, or moved, if the bulk of the marital assets are readily marketable, or if a managing spouse runs a business into the ground in which the other spouse may have an interest, it may be prudent to request the court to appoint a receiver.
A receiver is tasked with identifying, locating, and learning how assets are being managed. They are then tasked with gaining control of assets to prevent them from being liquidated, hidden, or transferred to another person or entity. They may also be tasked with managing a business, paying bills, collecting on unpaid judgments and court orders for child support, spousal support, attorney’s fees, sanctions and more.
If you are concerned your spouse may do anything to impact your rights to community property or if your spouse is self-employed and refuses to pay support despite the ability to do so, contact Heyde Family Law immediately. We can help you determine whether a receivership may be appropriate in your case.