Texas is a community property state, but some spouses will try to commit fraud on the community by moving assets or undervaluing them in a divorce. As the description of this practice states, it is a form of fraud, and courts will punish it. However, one state’s laws have made it possible for the very wealthy to legally move assets and shield them from divorce.
Ed Bosarge moves his money out of Texas
Ed Bosarge made billions in quantitative trading, founding one of the most profitable companies in this area in the country. He and his wife Marie literally lived in luxury among high-priced pieces of artwork and $5 million Egyptian mummies. However, Ed Bosarge was secretly preparing for divorce. He created South Dakota trusts and moved the money out of his name. Once he informed his wife of their impending divorce, he disclosed a marital estate of $12 million.
Marie Bosarge hits roadblocks in the divorce
Now, Marie Bosarge is trying to access the money in the South Dakota trusts and is finding out that these trusts are a virtual fortress. While she is suing her husband, she may end up with next to nothing from the marital estate. This is precisely why billionaires from around the world have latched onto South Dakota as a haven for their assets. Once money has been moved there, it becomes practically untouchable and entirely secret. As a result, hundreds of billions of dollars are sitting in South Dakota trusts.
If you are in the process of a divorce, you may benefit from legal representation. While a family law attorney might not be able to prevent something like this from happening, they could help scrutinize your spouse’s financial filings to verify that they are not trying to commit fraud on the community. If your lawyer does discover fraudulent behavior, they may take legal action in court to bring the matter to the judge’s attention.