Divorce Litigation Shifts to Radical Transparency

The era of 'hide the ball' is over as fiduciary duties require full disclosure of assets in divorce cases.

Apr. 11, 2026 at 12:49am

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A bold, colorful silkscreen print featuring a single wedding ring icon repeated in a grid pattern, conveying the idea of marital assets and transparency in divorce cases.New legal standards aim to prevent the wealthier spouse from hiding assets during divorce proceedings.Los Angeles Today

The landscape of divorce litigation has undergone a significant shift, moving from a culture of 'hide-and-seek' to a mandate of radical transparency. Historically, the 'in-spouse' who managed the business or complex investments held all the cards, while the 'out-spouse' had to play a high-stakes game of detective to find community assets. However, landmark legal rulings have now placed the burden of proof on the more informed spouse, requiring full and continuous disclosure of all assets and liabilities, regardless of how they are characterized.

Why it matters

This shift in fiduciary duties aims to deter the behavior of hiding assets and information, which can lead to costly legal battles, sanctions, and even the complete 'set aside' of a divorce judgment. The new rules empower the less-informed spouse and promote fairness in the division of the community estate.

The details

Under Family Code §721(b) in California, spouses are bound by the same fiduciary rules that govern business partners, requiring the 'highest duty of good faith and fair dealing.' Key statutes like Family Code Sections 1100(e), 2100(c), and 2102 reinforce these duties, mandating full and accurate disclosure of all assets and liabilities from the date of separation until the final distribution of the estate. In the landmark case In Re: Marriage of Feldman, the court imposed a $390,000 sanction on a husband who failed to disclose the existence of several new companies and assets, clarifying that sanctions can be issued even without economic loss to the other spouse.

  • The landmark In Re: Marriage of Feldman case was decided in 2025.
  • The fiduciary duties outlined in the California Family Code have been in effect since the early 2000s.

The players

In Re: Marriage of Feldman

A landmark court case that established the new standards of radical transparency in divorce proceedings.

Family Code §721(b)

A California statute that binds spouses to the same fiduciary rules as business partners, requiring the 'highest duty of good faith and fair dealing.'

Family Code Sections 1100(e), 2100(c), and 2102

Key California statutes that reinforce the duties of full and accurate disclosure of assets and liabilities in divorce cases.

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What they’re saying

“The era of 'hide the ball' is over. Under Family Code §721(b), spouses are bound by the same fiduciary rules that govern business partners.”

— Atty. Kenneth Reyes, Attorney and Author

“Sanctions can be issued even if the other spouse suffers no economic loss. The goal is to deter the behavior itself.”

— Atty. Kenneth Reyes, Attorney and Author

What’s next

Attorneys and financial professionals advise that spouses with superior access to information must err on the side of over-disclosure to avoid costly sanctions or the complete 'set aside' of a divorce judgment.

The takeaway

This shift in divorce litigation aims to level the playing field and promote fairness by requiring radical transparency from the more informed spouse. The burden of proof is now on the partner with superior access to information, who must proactively disclose all material facts to avoid severe legal consequences.