1. Compare the facts of the Modnick case with the facts of the Welch case provided in the memo to Terry Jacobs. What do the two cases have in common? How do the cases differ?

2. Are there additional facts you need to know in the Welch case in order to do a complete comparison with the Modnick case? If so, what do you need to know?

Modnick is a family law/domestic relations decision. The legal issue addressed is “does the failure of one spouse to disclose the existence of a community property asset constitute extrinsic fraud?” When the Modnicks dissolved their marriage, Mr. Modnick disclosed only one bank account in his name, an account that had a $7.00 balance. After an IRS investigation Mrs. Modnick discovered that her former husband had willfully not disclosed other substantial bank accounts. She moved to set aside the final judgment. The trial court denied her motion. The appellate court reversed and vacated the interlocutory and final judgments of dissolution insofar as it related to the property settlement incorporated into the divorce decree and the spousal support award.