Earlier this week, a contentious divorce case involving a Dallas businessman went to trial. The businessman is the head of a multi-billion dollar asset management company.
In 2006, the man got married. The man and his wife had a prenuptial agreement. Prenuptial agreements can have a wide variety of different terms in them. Under the terms of the couple’s prenuptial agreement, the man’s wife was to receive a payout of up to $5 million in the event of a divorce.
In 2011, the man filed for a divorce. As the case progressed, the man made claims that he is insolvent. He alleges that this insolvency came about as a result of lawsuits the asset management company has faced. If the court in this divorce case ultimately finds that the man is insolvent, it could significantly impact what his wife ultimately receives under the prenuptial agreement.
The man’s wife is opposing his insolvency claim. In support of this opposition, a former business partner of the man has testified that the man told him that he was planning to attempt to get out of making large payments under the prenuptial agreement by hiding assets.
Hidden assets can be a major concern in a divorce. When a party hides assets in a divorce, it can result in the other party not receiving what they should in the divorce. No person should have to face not getting a fair resolution in a divorce because the other party engaged in deception. The possibility of asset-hiding is one of the reasons why careful review of financial information can be incredibly important in a divorce.
On Wednesday, the trial in this divorce case began. It will be interesting to see what happens in this trial and what decision the court ultimately makes in regards to the man’s insolvency claim.
Source: The New York Post, “Hedge fund mogul in nasty divorce battle with ex,” Josh Kosman, Oct. 23, 2013