Family Law: Family Code Section 2102(c) Sanctions Order Reversed, But Needs-Based $260,000 Fee Awards Are Affirmed

 

Court of Appeal Determines Scope of Section 2102(c) and Reminds Practitioners That Section 2030/2032 Fees Are Based on Relative Needs Even With High Net Worth Spouses.

     Marriage of Sorge, Case Nos. D57677/58611 (4th Dist., Div. 1 Jan. 5, 2012) (certified for publication) reversed a Family Code section 2102(c) breach of fiduciary duty sanctions award because it determined the statute did not impose on divorced parties a continuing fiduciary duty to disclose all material facts regarding a party’s income after a final custody and support order has been entered. However, even though the two spouses had high net worth, it also affirmed “needs-based” pendente lite fee awards to wife totaling $260,000 under Family Code sections 2030/2032 where the relative needs showed husband had a significantly greater net worth albeit less cash flow liquidity. (In re Marriage of O’Conner, 59 Cal.App.4th 877, 883-884 (1997).)

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