If you’re fortunate, your spouse will not try to hide, deplete or sell assets during your divorce to prevent dividing them with you as they should and as the law requires. However, sadly, some people attempt to do exactly that –- either to walk away from the marriage with as much as they can or simply for spite.
In some cases, a couple may jointly own a valuable asset like a business or a piece of commercial or rental property. Their divorce may be so combative that they’re no longer able to effectively manage it together.
What does a receiver do?
In all of these cases, a receivership may be necessary. A judge can appoint a receiver to take over the management of one or more assets. A receiver is typically a neutral third-party with the skills necessary to manage the asset. This can keep a business from going under or a property from going in to foreclosure so that the value of the asset is preserved.
A judge may also appoint a receiver if one person is not paying child or spousal support or any other type of court-ordered payment. If that person has the income and assets necessary to make those payments, a receiver can take control over them to ensure that the payments are made.
Receiverships are not part of the typical divorce. However, many divorces are not “typical,” for one reason or another. If you believe that a receivership is necessary to preserve an asset or enforce a judgment, talk to your family law attorney. They can request one from the court or take other steps to protect you.
