9 April 2025
Court Receiverships
Yes, a court-appointed receiver can be used in divorce litigation, though it’s not a common occurrence. A receiver is a neutral third party appointed by the court to manage or safeguard assets that are at risk of being mismanaged, hidden, or depleted during the divorce process. This can include businesses, real estate, or other valuable marital property.
For example, if a divorcing couple owns a business and there’s a risk of one party mismanaging it, a receiver might be appointed to ensure the business continues to operate smoothly until the property division is finalized. Similarly, if there’s a property at risk of foreclosure due to unpaid bills, a receiver could step in to manage or sell the property.
Receiverships are typically seen as a last resort because they can be costly and add complexity to the case. However, they can be an effective tool to protect assets and ensure compliance with court orders.
In divorce litigation, receiverships typically involve managing complex marital assets like jointly-owned businesses or real estate properties. These receiverships focus on preserving the value of the estate by preventing mismanagement, avoiding foreclosure, or handling the fair sale of the property while the divorce is finalized.
If a divorcing couple owns a business and there is a high risk that one party might mismanage or deplete its funds due to the dispute, a receiver can be appointed to intervene. The receiver assumes control to ensure the business continues operating smoothly and fairly, preserving its value until it can be properly divided or sold.
When there are allegations of hidden assets or intentional depletion of marital property (fraud), a receiver has the broad scope to locate, manage, and safeguard those assets. They enforce court orders to secure the estate, preventing either spouse from wrongfully dissipating the property before the court makes a final division.
Appointing a receiver in family law cases is usually seen as a last resort because the process can be complex and costly. Courts generally prefer less intrusive methods to divide assets, but will authorize a receiver if there is an imminent threat of significant financial loss or a failure to comply with existing court orders.
3 December 2021
Court Receiverships, Resources
The California Code of Civil Procedure Section 564 lists many of the traditional types of cases in which receivers may be appointed. They include, but are not limited to, the following: Preservation of a common fund or property in dispute and in danger of injury or dissipation;Rents, Issues and Profits (Real Estate);Substandard Housing – The…
10 December 2021
Court Receiverships, Resources
A receivership can be structured in a variety of ways based on the nature of the dispute, the goals and objectives of the parties, the type of asset(s) that will be placed under the control of a receiver as well as the ruling of the court. There are two core types of receiverships – a…
11 May 2022
Court Receiverships, Resources
All court receiverships are not created equally, but the life-cycle of a court receivership has similarities that can be seen in almost every case.
