Peterson
Peterson v. Lusk (In re Lusk)
Opinion
Lead Opinion
Lastreto, J.
INTRODUCTION
11 U.S.C. § 523 (a)(4) excepts from discharge an individual debtor's debt for *681 fraud or defalcation while acting in a fiduciary capacity. Debtor's former spouse here asks the court to find nondischargeable a debt stemming from a previously adjudicated community property interest in defendant's retirement benefits. The court holds that sufficient evidence has been presented establishing both the defendant's defalcation and requisite intent. Consequently, the debt representing that previously awarded community property interest is nondischargeable.
FACTS
Early Events.
The provenance of this dispute begins in August 1994 with the dissolution of a nearly 12 year marriage between joint debtor Michael Lloyd Lusk ("Michael") and his former spouse Susan P. Peterson ("Susan"). 1 Michael and Susan had one son, Matthew. During their marriage, Michael worked for Allstate Insurance Company. Then, Allstate offered two retirement plans: a traditional defined benefit pension ("Allstate Pension") and a 401(k) savings plan ("Allstate 401(k)"). Michael participated in both. The California Superior Court in Ventura County issued a dissolution judgment on August 5, 1994, which…