  We postulate that the orientation of the soft supersymmetry-breaking terms in
flavor space is not fixed by tree level physics at the Planck scale; it is a
dynamical variable which depends on fields that have no tree level potential.
These fields can be thought of as either moduli or as the Nambu-Goldstone
bosons of the spontaneously broken flavor symmetry which is non-linearly
realized by the soft terms. We show that the soft terms align with the quark
and lepton Yukawa couplings, just as spins align with an external magnetic
field. As a result, the soft terms conserve individual lepton numbers and do
not cause large flavor or CP violations. The vacuum adjusts so as to allow
large sparticle splittings to naturally coexist with flavor conservation.
Consequently, the resulting phenomenology is different from that of minimal
supersymmetric theories. We also propose theories in which the shape of the
soft terms in flavor space is a dynamical variable which depends on fields that
have no tree level potential. This dynamically leads to partial degeneracy
among sparticles and further supression of flavor violations. The ideas of this
paper suggest a connection between the space of moduli and the spontaneously
broken flavor group.
