You are planning to divorce your spouse. The two of you own a business together. However, your marital problems have caused the business to suffer badly. Maybe your spouse has gradually pushed you out and taken greater control — only to completely mismanage it. You just want to keep the business from losing any more value before you can get your fair share of it in the divorce and move on.
That’s one example of how receiverships are used in divorce. They’re not common. However, a court-appointed receiver can help preserve assets and property as a couple determines how their property will be divided.
Another example is real estate. Maybe the two of you own a vacation home in Aspen. Your relationship has deteriorated so badly that you can’t agree on who to hire to make needed repairs. A receiver can take over managing and safeguarding the property until the two of you can work out how you’ll divide it.
Maybe you use that Aspen home as a rental property. However, you suspect that your spouse is getting more rent for it than they’re telling you and keeping the extra — or maybe they’re not splitting the rent with you at all. A receiver can take over the rent collection to ensure that both of you get your share until you’ve finalized your divorce.
Receivers are typically people who have no allegiance to either of the divorcing spouses. However, they should have some experience in handling the responsibility they’re assigned — like managing a business or overseeing a property.
Sometimes, receivers are appointed to implement judgments. Maybe you sell your share of that Aspen home to your spouse in the divorce, but they never get around to paying you. Perhaps they’ve been ordered to pay you temporary support until your spousal support agreement is finalized, but the payments are sporadic, late or short. A receiver can be appointed to carry out the judgment that orders the payment you’re due.
If you believe that a receiver is necessary to help preserve a jointly owned asset or ensure that you get the money you’re owed, talk to your attorney. They can provide valuable guidance on whether a receiver is a wise investment.