BILL NUMBER: AB 2661	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 24, 2012

   An act to amend Section 2102 of the Family Code, relating to
marriage.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2661, as introduced, Morrell. Marriage: dissolution:
disclosures.
   Existing law subjects each party to a marriage to general rules
governing fiduciary relationships which control the actions of
persons occupying confidential relations with each other. Existing
law governs the proceedings for dissolution of marriage, for nullity
of marriage, or for legal separation of the parties. Existing law
requires each party, from the date of separation to the date of a
valid, enforceable, and binding resolution of all issues relating to
child or spousal support and professional fees, to be subject to
specified standards of a confidential and fiduciary relationship as
to all issues relating to the support and fees, including immediate,
full, and accurate disclosure of all material facts and information
regarding the income or expenses of the party.
   This bill instead would provide that from the date of separation
to the date of entry of a judgment for child or spousal support, each
party is subject to those standards as to all issues relating to the
support, including immediate, full, and accurate disclosure of all
material facts and information regarding the income or expenses of
the party. The bill would suspend the duty to meet those standards
upon entry of a judgment for permanent support, but reinstate those
duties upon the filing and service of a motion relating to child or
spousal support until that motion is resolved.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2102 of the Family Code is amended to read:
   2102.  (a) From the date of separation to the date of the
distribution of the community or quasi-community asset or liability
in question, each party is subject to the standards provided in
Section 721, as to all activities that affect the assets and
liabilities of the other party, including, but not limited to, the
following activities:
   (1) The accurate and complete disclosure of all assets and
liabilities in which the party has or may have an interest or
obligation and all current earnings, accumulations, and expenses,
including an immediate, full, and accurate update or augmentation to
the extent there have been any material changes.
   (2) The accurate and complete written disclosure of any investment
opportunity, business opportunity, or other income-producing
opportunity that presents itself after the date of separation, but
that results from any investment, significant business activity
outside the ordinary course of business, or other income-producing
opportunity of either spouse from the date of marriage to the date of
separation, inclusive. The written disclosure shall be made in
sufficient time for the other spouse to make an informed decision as
to whether he or she desires to participate in the investment
opportunity, business, or other potential income-producing
opportunity, and for the court to resolve any dispute regarding the
right of the other spouse to participate in the opportunity. In the
event of nondisclosure of an investment opportunity, the division of
any gain resulting from that opportunity is governed by the standard
provided in Section 2556.
   (3) The operation or management of a business or an interest in a
business in which the community may have an interest.
   (b) From the date that a valid, enforceable, and binding
resolution of the disposition of the asset or liability in question
is reached, until the asset or liability has actually been
distributed, each party is subject to the standards provided in
Section 721 as to all activities that affect the assets or
liabilities of the other party. Once a particular asset or liability
has been distributed, the duties and standards set forth in Section
721 shall end as to that asset or liability.
   (c) From the date of separation to the date of  a valid,
enforceable, and binding resolution of all issues relating to
    entry   of a judgment for 
child or spousal support  and professional fees  ,
each party is subject to the standards provided in Section 721 as to
all issues relating to the support  and fees  ,
including immediate, full, and accurate disclosure of all material
facts and information regarding the income or expenses of the party.
 The duty to meet those standards is suspended upon entry of a
judgment for permanent support, but is reinstated upon the filing and
service of a motion relating to child or spousal support until that
motion is resolved.