How Far Does the Attorney-Client Privilege Extend?In short, it extends pretty far, but not
that far. The attorney-client privilege does not extend to any discussions
or advice an attorney gives a client if it is done to aid the client in
the commission or planning of criminal or fraudulent activity.
What Specific Information Might be Disclosed?
In matters of tax fraud, which may arise in the disclosure process of
a dissolution, and information including, "the client's name,
financial status, tax payments, when and where matters were discussed,
fee arrangements, and types of services have have to be disclosed."
How Can a Client Protect Their Assets?
Marcyan suggests that, in order to protect an asset, the attorney may
want to "trace sources of funds for each marital asset to insulate
against forfeiture and show that purchases were from funds derived from
legal, not criminal, endeavors." This suggestion extends to the source
for attorney's fees as well, which may also be subject to forfeiture
if funded by illegal sources.
What About the 5th Amendment?
The Fifth Amendment allows a person to refuse to testify under oath in
order to avoid self-incrimination. This right may be invoked by the fraudulent
spouse. However, since a divorce is a
civil and not
criminal proceeding, the court can draw an adverse inference against the fraudulent
spouse's refusal to testify