Simon Leon Posted June 23, 2008 Share Posted June 23, 2008 What would happen if I took out a large "home equity loan" during the early stages of a seperation. This is before any of the accounts have been closed. Cash withdrawels on the credit cards. I could easily come out with around 100K. How would the divorce case look at that if they couldn't get it back?? Link to post Share on other sites
Melovator Posted June 23, 2008 Share Posted June 23, 2008 I'd strongly urge you to seek legal advice before doing this. I know that in Australia such things are not looked upon kindly by the courts and go badly for the party who did it. Meaning you could end up with a mountain of debt at the end of it all. Link to post Share on other sites
Author Simon Leon Posted June 23, 2008 Author Share Posted June 23, 2008 I am currently living in the states......but I'm originally from NZ. I would be relocating the funds back there out of the reach of the USA courts. Link to post Share on other sites
carhill Posted June 23, 2008 Share Posted June 23, 2008 Are you the sole debtor on the real estate and credit cards? Was/is the real estate maintained and funded as your sole and separate property? Do you live in a community property state? Unless such transactions are otherwise necessary, I would not proceed without legal advice. If you have to do it anyway (for other reasons), it still would be a good idea to get legal advice so as to structure things correctly and make the proper/legal disclosures. Personally, I'm making necessary financial arrangements (based on legal advice) for my business/personal affairs prior to any official potential marital changes. Every situation is unique. I'd leave the credit cards alone, but that's me.... Adding, are you a US citizen? Green card holder? Where will you file for divorce? What are the agreements between the US and NZ for such issues? Are children involved? I'd proceed very carefully.... Link to post Share on other sites
Author Simon Leon Posted June 23, 2008 Author Share Posted June 23, 2008 I'm not planning on doing anything. It's just one of those stupid ideas that comes into my head during these crazy times. Link to post Share on other sites
carrotgirl Posted June 23, 2008 Share Posted June 23, 2008 Simon Leon, Melovator gave excellent advice. Seek legal counsel. The plan you're considering could easily land you in prison as well as in debt. It's highly unlikely you could place funds outside the reach of the US judicial system, or almost ANY judicial system. Laws against money laundering have been regulated globally since 1988, and I believe tracing of finances is compulsory on international transactions throughout most of the world since 2001. Also, money laundering by definition is not limited strictly to money. Stay out of prison. Let it go. Carrot Link to post Share on other sites
carhill Posted June 23, 2008 Share Posted June 23, 2008 I'm not planning on doing anything. It's just one of those stupid ideas that comes into my head during these crazy times. I hear ya. I've had plenty of them in moments of anger and despair. I learned, dealing with the legalities of caring for my mother, that cooling off and getting proper professional advice is far better in the long run, even if not as emotionally satisfying Link to post Share on other sites
Trialbyfire Posted June 23, 2008 Share Posted June 23, 2008 100K isn't worth the cost of what it would take, to hide it. Don't do it. Link to post Share on other sites
Calisto Posted June 23, 2008 Share Posted June 23, 2008 Well, you'd end up divorced and having to pay 50% of all the debt. If you're stating I'm gonna sock it to him, yeah, sure, he'll have debt, too, but he'll have the same amount of debt you'll have. Oh, dude, you're a guy? You'll probably have to pay it all by yourself then. do you want a huge amount of debt to pay off? Go for it. Link to post Share on other sites
Gunny376 Posted June 23, 2008 Share Posted June 23, 2008 When it comes to seperation/divorce there's one and only one way to go ~ Miminize living expenses, maximize income, eradicate any and all debt as quickly as possible. You're going through or about to go through a major life alternating event, and the future is in doubt. Creiditors get very jittery when they find out one is going through a divorce. The reason for this is that during the marriage, financial decisions are more often than not made are made based upon two inomces, but when divorce and seperation comes along ~ one party could end up with a dis-proportinate amount of the debt if they've not careful about the situation and are lacking in proper legal representation. Link to post Share on other sites
Calisto Posted June 23, 2008 Share Posted June 23, 2008 Yeah I have a good male friend who decided to hand his wife a divorce when he found out she had been cheating on him for years with a coworker who also was a family friend. (Nice.) Anyway they were living together for about 8 months until they settled the house, etc. so she decided she would "sock it to him" by buyiing a $6000 breast enhancement job and putting on their joint credit card. She figured since he earned more money than she did (he is a school teacher, she is a secretary at a real estate office), he would end up having to pay for her boob job after the divorce. Wrong. She ended up with half of the debt of the credit card she used for her breast job. He had to pay for half of the credit card bill but he paid it off within a few months and she is still paying for it and missing credit card payments, and her debt has risen significantly with the interest and the late charges. (He knows this because he still logs on to the account online.) Oh and he ended up buying the house and she was PISSED. She didn't think he could do it. So, she's living in a dump rental and he has an awesome house. Tee hee. Tee hee. Link to post Share on other sites
Lookingforward Posted June 24, 2008 Share Posted June 24, 2008 I am currently living in the states......but I'm originally from NZ. I would be relocating the funds back there out of the reach of the USA courts. Definitely get legal advice first - the USA and Australia and NZ have very many "reciprocal" agreements re money, pensions, custody, courts etc oh and fwiw - on the other side - don't go paying her anything ahead of time - or you'll find out that it won't be included when it comes to the "split up" of joint monies and assets Link to post Share on other sites
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