When former spouses are battling for control and/or division of valuable business assets, one spouse usually controls the business while the other does not. This result ordinarily obtains because one of the spouses was most involved with the business during the course of the marriage. For example, the marital estate may own a business, income-producing real property, or other significant assets which produce significant income for the marital estate. Upon the separation of the spouses, or the commencement of their marital dissolution, the spouse who was controlling the assets before the marriage continues to control them afterwards. Many times, suspicions arise concerning the control of the marital assets and accounting for the money and other business assets. In these circumstances, the appointment of a receiver may be appropriate for several purposes.

A receiver may be appointed to take charge of the income-producing or business related assets during the course of the dissolution of marriage to assure the assets are not being dissipated by one spouse to the detriment of the other or, to liquidate the asset and reduce it to cash to make its division less complex. A receiver may also be appointed to perform an accounting of the management of the business assets, the income derived from such assets, and the use of that income both during the marriage and after the spouses are separated.

The receiver, acting as the “hand of the court” will take charge of the assets, perform such investigations and accountings as the Court may direct, and make appropriate reports and recommendations. Often, the appointment of a receiver can result in a “clearing of the air” paving the way for a settlement between the former spouses.