THE ROLE OF “SPECIAL MASTERS”:
WHAT MAKES YOU SPECIAL AND WHY – THE LEGAL INS AND OUTS OF SPECIAL MASTERS AND OTHER ALTERNATIVE DISPUTE RESOLUTION OPTIONS IN FAMILY COURT CASES
SPECIAL CIRCUMSTANCES WHICH MAY WARRANT APPOINTMENT OF A SPECIAL MASTER
Seth E. Dizard, Esq.
O’Neil, Cannon, Hollman, DeJong & Laing, s.c.
· When an accurate financial disclosure is not forthcoming from the only person who is able to produce it. For example, when a privately held company is an asset of the marital estate, and financial reporting is suspect or insufficient. Or, a marital asset is being mismanaged. Bet you didn’t know that new convertible you saw me driving was a cost of goods sold.
· Enforcement. For example, tracking down hidden, undisclosed income; marshaling and liquidating assets; refusal to cooperate or abide by court orders. Go to jail, go directly to jail, do not pass Go, and definitely do not collect $200.
· Illiquid marital estates. For example, investment property, such as an apartment building or real estate portfolio. These types of assets, especially if they are self-managed, are not easily converted to cash, nor easily valued, nor reasonably divisible. You take the even units, and I’ll take the odd ones. Better yet, you take the odd ones.
· Disputes over income, business value. As an owner of privately held company, small or large, it is just not that hard to reduce one’s reportable income, or temporarily reduce a business’ value. A special master can get inside the business, determine if it is being run in the ordinary course, and generate reasonable, accurate information upon which a fair valuation can be reached. It’s the economy, Stupid.
· Business Oversight. For example, each party owns a business together, and neither is acting as a reasonable fiduciary for the other. A Special Master may be appointed to operate the business for the benefit of the marital estate. Dueling locksmiths. (It happens, I’ve seen it, and it ain’t pretty.)
The bottom line is this: well-qualified, experienced Special Masters can find or figure out the things your clients keep wondering or worrying about.