“The concept of fiduciary relationship was reintroduced into rules on management and control in legislation which became effective in 1992. Fam. Code, § 1100 now prescribes the general rule that until the community property has been divided by the parties or by a court, “[e]ach spouse shall act with respect to the other spouse in the management and control of the community property in accordance with the general rules governing fiduciary relationships which control the actions of persons having relationships of personal confidence as specified in section 721.” Fam. Code, §§ 1100, subd. (e), 721 in turn provides, with certain exceptions, that a husband and wife are subject to the general rules governing fiduciary relationships that control the actions of persons occupying confidential relations with each other. This confidential relationship imposes a duty of the highest good faith and fair dealing on each spouse, and neither may take unfair advantage of the other. Further, this fiduciary relationship is subject to the same rights and duties of nonmarital business partners, as provided in Corp. Code, §§ 16403, subds. (b)(1) (right of partner to inspect partnership books), (c) (duty to disclose information affecting partnership), 16404, subd. (b) (duty to account for partnership profits and right of partner to accounting). . . (1) Duty to disclose information re: property, debts, valuation: Each spouse is obligated to fully disclose to the other all material facts and information regarding the existence, characterization, and valuation of all assets in which the community has or may have an interest, and debts for which the community is or may be liable. Again, the duty continues until the property is divided. This abrogates the holding of Stevenot upon separation or the filing of a petition for dissolution, the confidential relationship ends and the parties deal with each other at arms’ length, so that disclosure of information regarding the value of property was not required. [Fam. Code, § 1100, subd. (e)] (2) Access to information: Each spouse is obliged to provide “equal access” to information, records, and books pertaining to the value and character of assets and debts. [Fam. Code, § 1100, subd. (e)] (3) Community business: The spouse who is operating or managing a business or interest in a business that is “all or substantially all community personal property” has “primary management and control” and may act alone in all transactions, but must give prior written notice to the other spouse of any “sale, lease, exchange, encumbrance or other disposition of all or substantially all of the personal property used in the business.” [Fam. Code, § 1100, subd. (d)] Failure to give written notice does not affect the validity of the transaction, but is subject to the exclusive remedies provided by Fam. Code, § 1101. Written notice is not required when prohibited by the law otherwise applicable to the transaction. [Fam. Code, § 1100, subd. (d)] (4) Access to transaction records: Each spouse must provide access at all times to books regarding transactions between themselves for purposes of inspection and copying. [Fam. Code, § 721, subd. (b)(1)] (5) Obligation to supply information regarding community property transactions: Each spouse is obligated to render “true and full information” regarding “all things affecting any transaction which concerns community property.” However, there is no obligation “to keep detailed books and records of community property transactions.” [Fam. Code, § 721, subd. (b)(2)] A spouse who is in a superior position to obtain records or information from which an asset can be valued and can reasonably do so must acquire and disclose such information to the other spouse. [Brewer v. Federici, 93 Cal. App. 4th 1334, 1348, 113 Cal. Rptr. 2d 849 (2d Dist. 2001)] (6) Accounting for profits from community property transactions: A spouse must provide an accounting and hold as trustee any profit derived from community property transactions conducted without the consent of the other spouse. [Fam. Code, § 721, subd. (b)(3)]”
[California Civil Practice Family Law Litigation [certain citations omitted]]
