SO..when is spousal support "exempted" in Bankruptcy? How about under CCP 703.140?
..........What if the "MSA was purportedly ambiguous?"
..............What if the court thinks the MSA lists the spousal support--- but it's really not spousal?
................What if the alleged support was not reasonably necessary for such support?
----> Must the Court look beyond the labels provided for in the MSA?
An evidentiary hearing in Bankruptcy Court is very interesting. (See ftp://188.8.131.52/DKupetzArticle.pdf )
..............."While there are significant differences between adversary proceedings and contested matters, the similarities between them are greater than appellant assumes.
In a contested matter, there is no summons and complaint, pleading rules are relaxed, counterclaims and third-parties practice does not apply, and most pre-trial procedure is either foreshortened or dispensed with in the interest of time and simplicity.
Nevertheless, . . . discovery is available, testimony regarding contested material factual disputes must be taken in the same manner as in an adversary proceeding, and the court must make findings of fact and conclusions of law before entering an order that has the status of a judgment." ]
And in this particular case, the Trustee objected to the purported spousal support exemption under the CCP code cited above. Also noted, Trustee mentioned that the item was purportedly concealed before but that was not made very clear.
Both parties had attorneys, both parties had attorneys during the MSA process, and the wife had expert. Wife stood to lose about $200,000. and yes,
she did lose it.