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Divorcing California couples may be impacted by NY case

California residents who are reluctant to share financial information during their divorce may be interested in a New York case where the former husband is refusing to do just that. The man is refusing to testify in a lawsuit brought by his estranged wife who claims she is entitled to a share of the proceeds from property sales.

The husband's attorney recently told the New York Court of Appeals he does not have to testify in court and further it is up to others to prove he has money. The man reportedly received $776,000 for selling one piece of property and transferred a business to his sister. The wife filed for divorce in New York in 2008 when the properties in question were considered to be marital assets. The husband claims he divorced her in 2009 in Lebanon and therefore is not bound by any New York proceedings, including a 2010 order that sale proceeds be deposited in an escrow account.

The husband's attorney said he sold the property when there was no legal restriction on what he did with the proceeds, and that when the escrow order was issued he no longer had the money to deposit in the account. New York's highest court is expected to make a decision on the matter in October 2015.

Most divorcing couples provide financial information on their assets and liabilities as part of the divorce process. Not all property division settlements are this complicated, but when negotiations become difficult, each party may need assistance from their respective attorneys.

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