Thursday, August 21, 2014

Buried Treasure



           One of the more difficult concepts to get some divorce clients to grasp is that facts need to be proven before the Court can act upon them. Merely believing, thinking, or suspecting that certain things are true just won't do. Where is the evidence? How can we establish the facts? These questions are constantly present when preparing for trial.

       Every divorce judge and lawyer has heard this lament: "I know he/she is hiding money somewhere." But saying it just doesn't make it so. Sometimes, forensic accounting can track down unaccounted-for funds, and sometimes a document shows up that provides the necessary proof. But, most often the client's conviction that he/she is being cheated just cannot be established with sufficient certainty to provide any sort of remedy to the wronged spouse.

            Hiding assets can have very serious consequences if proof is provided. Ohio has a statute that provides: "If a spouse has substantially and willfully failed to disclose marital property" the court can award the injured spouse a "greater award of marital property" up to three times the value of the non-disclosed property.

            But, no proof, no nothing!

While I was on the bench, I heard a contested divorce trial involving a well-to-do family. Husband and Wife had been married for well over thirty years and had two grown sons. Husband was an entrepreneur and had established a very successful business. Wife had never worked outside of her home. Husband handled all the family finances.

In the course of the case, Husband's business had been valued and wife was awarded half of that value, along with half of all the other assets. She also received a substantial amount of spousal support

            However, throughout the trial, Wife, through her lawyer, tried to convince me that there was a large amount of cash or some other assets which Husband had not revealed. Wife testified that Husband was very secretive about money, and she was excluded from any access to the marital funds. She claimed he had lied, cheated, and deceived her in every way possible, therefore, there had to be something he was hiding from her and her lawyer. But, I was presented with no evidence whatsoever from which I could conclude, on a factual basis, that any assets had been concealed.

            The parties owned two residences, and had lived separately for several years. Wife lived in the substantial home in an upscale suburb of Columbus, while Husband, having retired, spent his time in the deluxe beach home in Palm Beach, Florida, where he golfed and fished, and entertained a series of young ladies. The parties agreed that she would have the "big house" and he would have the Florida retreat.

When I wrote my decision, I noted the conflict over the allegation of concealed assets, but found that the evidence compelled a finding that all the assets were accounted for. The case ended on that note – almost.

One afternoon, Wife's lawyer called me. "I have a story to tell you," he said. He proceeded to relate the following tale:

A couple of years after the divorce was final, Husband suffered a series of heart attacks and was on his death bed when he summoned the parties' sons to his side. "Boys," he told them, "when I am gone, before you sell the beach house, step off twelve paces due south from the big palm tree by the pool. Dig there." Shortly thereafter, he passed away. The sons went together to the beach house, found a shovel, and dug as instructed.

About three feet down in the sandy soil they found a very heavy metal strong box. Breaking it open, they discovered that it was full of gold coins and small gold bars. The appraisal came back well over a half a million dollars. Husband's will left everything to his sons. The boys gave the gold to their mother, and her suspicions were finally vindicated.

Sometimes there really is a buried treasure.

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