California Family Code § 1101: Breach of Spousal Fiduciary Duty (Community Property Remedies)

Plain-Language Summary

California Family Code §1101 gives a spouse a cause of action against the other spouse for breach of the marital fiduciary duties (see Fam. Code §§721, 1100) that impairs the claimant’s present, undivided one-half interest in the community estate. Courts can order accountings, add a spouse’s name to title (with narrow exceptions), and award monetary remedies. For breaches involving undisclosed or improperly transferred community assets, §1101(g) authorizes at least a 50% award of the asset’s value (measured at the highest of breach/sale/award) plus attorney’s fees and court costs. If the conduct meets Civil Code §3294 (fraud, malice, or oppression), §1101(h) authorizes a 100% award of the asset. Most §1101 claims must be brought within 3 years of actual knowledge (§1101(d)(1)), but actions tied to dissolution/nullity/legal separation or brought upon a spouse’s death may proceed without that limit (§1101(d)(2)); laches can still apply.

Real-World Examples

  • Hidden windfall: A spouse secretly wins money (e.g., lottery) and conceals it during divorce. Court awards the other spouse 100% of the concealed asset under §1101(h) because the concealment was fraudulent.
  • Undisclosed debt/cash advances: One spouse takes cash advances or opens accounts without disclosure. Court orders at least a 50% award of the undisclosed sums plus attorney’s fees under §1101(g).
  • Nondisclosure during litigation: A spouse withholds financial information; sanctions/fee awards are imposed with §1101 remedies considered alongside §§2100–2107 and §271.
  • Title/name correction: Court reforms title to reflect community character or adds the other spouse’s name to community assets (§1101(c)), except for specified interests (e.g., general partnership interests, certain professional interests, or where third-party rights would be impaired).
  • Consent dispensed with: If a transaction needs both spouses’ consent and one arbitrarily refuses (or cannot consent), the court can dispense with that consent when the deal is in the community’s best interest (§1101(e)).

Published Case Law on § 1101

Full Text of California Family Code § 1101

(a) A spouse has a claim against the other spouse for any breach of the fiduciary duty that results in impairment to the claimant spouse’s present undivided one-half interest in the community estate, including, but not limited to, a single transaction or a pattern or series of transactions, which transaction or transactions have caused or will cause a detrimental impact to the claimant spouse’s undivided one-half interest in the community estate.

(b) A court may order an accounting of the property and obligations of the parties to a marriage and may determine the rights of ownership in, the beneficial enjoyment of, or access to, community property, and the classification of all property of the parties to a marriage.

(c) A court may order that the name of a spouse shall be added to community property held in the name of the other spouse alone or that the title of community property held in some other title form shall be reformed to reflect its community character, except with respect to any of the following:

  1. A partnership interest held by the other spouse as a general partner.
  2. An interest in a professional corporation or professional association.
  3. An asset of an unincorporated business if the other spouse is the only spouse involved in operating and managing the business.
  4. Any other property, if the revision would adversely affect the rights of a third person.

(d)(1) Except as provided in paragraph (2), any action under subdivision (a) shall be commenced within three years of the date a petitioning spouse had actual knowledge that the transaction or event for which the remedy is being sought occurred.

(2) An action may be commenced under this section upon the death of a spouse or in conjunction with an action for legal separation, dissolution of marriage, or nullity without regard to the time limitations set forth in paragraph (1).

(3) The defense of laches may be raised in any action brought under this section.

(4) Except as to actions authorized by paragraph (2), remedies under subdivision (a) apply only to transactions or events occurring on or after July 1, 1987.

(e) In any transaction affecting community property in which the consent of both spouses is required, the court may, upon the motion of a spouse, dispense with the requirement of the other spouse’s consent if both of the following requirements are met:

  1. The proposed transaction is in the best interest of the community.
  2. Consent has been arbitrarily refused or cannot be obtained due to the physical incapacity, mental incapacity, or prolonged absence of the nonconsenting spouse.

(f) Any action may be brought under this section without filing an action for dissolution of marriage, legal separation, or nullity, or may be brought in conjunction with the action or upon the death of a spouse.

(g) Remedies for breach of the fiduciary duty by one spouse, including those set out in Sections 721 and 1100, shall include, but not be limited to, an award to the other spouse of 50 percent, or an amount equal to 50