Allegedly, indicted billionaire R. Allen Stanford offered his wife a $200 million divorce settlement last year, which the wife's lawyer never informed her of. Now the wife of R. Allen Stanford is suing her divorce lawyer for the $200 million. Whether or not the offer ever existed or the lawyer communicated it to her client is a matter for the court. However, it brings up an interesting topic. What are lawyers required to tell their clients?

In a criminal case a lawyer is required to inform his or her client of any plea offer made by the prosecution. Failure to do so could lead to malpractice issues, a new trial and possibly even disbarment or other penalties against the lawyer procured by the state bar. As the Stanford case shows, civil lawyers are required to do something similar. A lawyer must always inform his or her client of any settlement offer made by opposing. Failure to do so could have severe consequences.

If you have questions about attorney disclosure rules, or if you feel you may have been misled by your attorney visit LawInfo to find an attorney in your area to answer your questions.