In divorce, one of the most complex discussions is conjugal property. Take note that there are instances where your partner can hide assets, allowing the fall of joint properties, or failing to comply with court orders. A good divorce lawyer will play a crucial role in ensuring that the financial terms of your divorce are favorable to you. In some cases, however, the courts might find it imperative to appoint a receiver in your divorce proceedings.
Receiverships, as divorce lawyers based in Santa Fe NM will attest, play an indispensable role in some instances. In a divorce, receivers oversee the care of an asset that is at risk of depletion or disposal. Their primary role is to manage assets on behalf of the courts. This may be so that the asset is eventually disposed of or divided as the court deems fit. The following are divorce scenarios where receivers might play a role.
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Co-Owned Family Businesses
During a divorce, it is common for the employees of a co-owned family business to take sides. The conflicts in divorce might also spill over to business and cause significant losses and suffering employees. In this instance, the courts might task a receiver with the operations of the company to avoid its failure. The receiver will put together a team of employees and shareholders to oversee different processes in the company and chart the best way forward. Even so, he/she will continuously update the divorcing spouses and their legal teams of the decisions and their outcome.
Inability to Pay Alimony and Child Support
At times, the spouse who is meant to pay child support and alimony might be unable to do so because his/her money is tied in other investments. The hardest accounts to get money from are retirement accounts like the 401 {K}, stocks, and those with tax liens. In this case, a receiver will use a drafted court order to cut through red tape and access these funds for the payment of spousal and child support.
Refinancing Existing Loans
A term loan might be due during the divorce proceedings, but the spouse who signed for it wants to refinance or borrow extra funds. The other spouse is, however, against the refinance between it might put him/her at a disadvantage when the loan is split between them. The receiver in this situation checks to ensure that the need for additional funding is genuine, and the funds are used for their proposed purpose.
Failure to Reach a Settlement
Divorce parties might reach a gridlock on how to share some assets. In this case, the receiver acts as a facilitator who will learn the ins and outs of the asset involved. He/she will then counsel the parties on the solution that will work best for them.
The above scenarios are, unfortunately, more common than you might think. This is because most couples are now investing in expensive assets to guarantee their financial security. Under the right conditions, a receiver will reduce the filed motions and litigation it will take to reach a fair solution for both divorcing parties.