Misappropriation is a breach of a party’s fiduciary duty to the other party. Misappropriation and the breach of a fiduciary duty owed to the other party may exist in the following circumstances:

Family Law Infographic - Possible Violations

• gifts of money to a girlfriend, boyfriend, or other third party
• purchase of illegal drugs or illegal guns
• illegal gambling
• payments to prostitutes/escorts
• “waste” or disposal of community property
• gross negligence or reckless conduct relative to community assets or investments
• intentional misconduct relative to community assets
• knowingly violating the law to the detriment of community assets

The following circumstances generally do not constitute a misappropriation or the breach of a fiduciary duty:

Family Law Infographic - No Violation • negligent wrongful misconduct
• legal gambling
• extravagant entertainment
• extravagant purchases
• unsuccessful business ventures or failed investments