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Marriage of Flagg-Malek

Marcia Flagg and Broadmoor Community Church (BCC) appeal from an order and judgment in this dissolution action (a) sanctioning Flagg for failing to list on her schedule of assets a promise by BCC to retroactively pay her $105,000 for past work and (b) requiring BCC to pay Nader Malek, Flagg’s former husband, $105,000. As we explain, the promise to pay $105,000 was never a viable community asset, contingent or otherwise. Rather, the promise was an unenforceable “expectancy” that Flagg was not required to include in her schedule of assets. Therefore, the sanction against her cannot stand, nor can the judgment against BCC requiring it to pay the monies to Malek. We note that had Flagg actually received the monies, she would have had an asset in-hand she was required to disclose and to which Malek would have had a partial claim. However, she never received any of the monies and consequently never had anything more than an expectancy, which neither she nor Malek ever had any right to enforce. We therefore reverse the sanction order against Flagg for failing to disclose the supposed asset and the judgment against BCC requiring it to disgorge it.

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