Forked River, NJ asked in Divorce for New Jersey

Q: Can I reopen my divorce based on fraud if my ex-husband lied about the value of our business, I have 100% proof.

Our business was worth millions of dollars. The PSA stated the business was to be sold for 1 million and we were both to receive $500k, along with me receiving $375k in lump sum alimony. I was ordered to sign my stock over to his attorney which was to then be sold.

After I signed over my stock all payments stopped. I filed a motion and returned to court. My ex-husband fired his attorney and hired a new one. He then claimed in court that just 10 days after I signed over my stock he sold the business to his attorneys friend for $100k. The buyer gave a sworn statement as well. My ex-husband asked to have the entire agreement thrown out because of the business selling for less, this was granted. Because of this I lost everything. Several years after the divorce I was given 100% proof that he had in fact sold the business for millions of dollars and hid it from me. Can I return to court to reopen the case based on fraud?

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2 Lawyer Answers
Richard Diamond
Richard Diamond
Answered
  • Short Hills, NJ
  • Licensed in New Jersey

A: Over the course of my career, I have taken close to a dozen cases back to court (post-divorce) to seek to set aside the support and or equitable distribution terms of their settlement agreements based on unconscionability and/or fraud. The most complicated matter was a case from a few years ago, where the divorce agreement had been entered about 15 years earlier. We tried the case and based on the proofs of fraud and unconscionability; we were successful in getting it thrown out (primarily addressing the valuation of the husband's business operation for distribution purposes).

Here's the issue though - its expensive.

Presuming that you have competent credible proofs of fraud at the time of the sale, we would file an application with the court to seek to reopen equitable distribution and based on the proofs presented to the court, a judge would most likely then enter a scheduling order for discovery to afford you the opportunity to flesh out your claims and then the court would schedule a post-divorce trial to permit you to present your proofs.

Presuming you are able to present credible proof of the fraud at that trial, then the judge would be in a position to set aside the distribution and redo the distribution.

But that involves a lot of work and a lot of expense. Simply saying that you have proof of their fraud, does not open the courtroom doors nor get you money. You must file the application seeking to set aside the distribution based on the fraud and then the discovery process and then trial.

If you would like to have us review your materials, please contact us.

Leonard R. Boyer
Leonard R. Boyer pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Clifton, NJ
  • Licensed in New Jersey

A: You need to retain an experienced matrimonial attorney to handle this type of matter and it has to be properly prepared. With modern technology, there is no reason to let geographic locations affect your choice of attorney.

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