For people who have a large contingent of assets included in divorce proceedings, it can be difficult for both parties to come to terms with each other. This is particularly true if one spouse is concerned that the other concealed assets during property division proceedings.
Steve Cohen is known for acquiring significant sums of money in hedge fund management. The investor and his wife divorced in 1990, but they their divorce agreement remains the subject of disputes. At this time, Cohen’s ex-wife believes that $5.5 million related to a real-estate investment was concealed during initial divorce proceedings. Cohen attempted to dismiss a fraud claim brought by his former spouse, but a judge recently rejected the move.
The specific contention in this most recent dispute involves the value of an investment made in apartment development in the 1980s. At the time, Cohen apparently told his wife that the investment was lost entirely. After the divorce, however, she found out that her ex-husband received a $5.5 million settlement related to the failed investment, which he failed to disclose.
It’s understandable why assets and property can be a very sensitive topic during divorce. Knowing that spouses may already be angry with each other, both individuals also want to make sure that they receive the best financial settlement possible. In the process, one spouse might consider concealing assets to prevent them from being included among marital property. Of course, doing this can lead to legal trouble.
When couples know that asset division could be difficult, it might be beneficial to work through the process in a collaborative environment. By pursuing divorce mediation, couples can work through all the complex steps of property division without spending so much time in litigation. Of course, in order for this option to be successful, both individuals have to enter the process with an open mind and a willingness to be cooperative and honest.
Source: USA Today, “Steven Cohen divorce battle continues,” Kevin McCoy, Jan. 27, 2014