Tag: dissipation

Divorce and Crime

Posted by Ron Kauffman on with 0 Comment

Divorce and crime are in the news after the estranged wife of former San Diego congressman, Duncan Hunter, filed for divorce after more than a year of separation amid a corruption prosecution that netted them both felony convictions.

Divorce and Crime

Trouble in America’s Finest City

Margaret Hunter is seeking a divorce because of “irreconcilable differences,” and requests joint legal custody of their two daughters according to court records filed in San Diego Superior Court. She seeks physical custody of their daughters and reasonable visitation with their father. She also asked the court to award her spousal support and attorney’s fees and costs.

The divorce filings do not include any details about the “irreconcilable differences” that ended the marriage. An attorney for Margaret said she had no comment. A spokesman for Duncan did not immediately respond to requests for comment Wednesday.

Duncan Hunter has been living with his mother and father, Former Rep. Duncan Lee Hunter. The divorce records say Margaret and their daughters have lived in La Mesa since the couple separated in August 2019.

Duncan Hunter served as a U.S. Representative from 2013 to 2020 and succeeded his father, Republican Duncan Lee Hunter, a member of Congress from 1981 to 2009.

In 2017, the Department of Justice began a criminal investigation into Hunter and his campaign manager and wife Margaret Jankowski, for alleged campaign finance violations. The couple was indicted in federal court in August 2018 for allegedly using more than $250,000 in his campaign funds for personal purposes.

Margaret had been Duncan’s campaign manager. Both initially pleaded not guilty then separately changed their pleas last year, with each admitting to one felony count of conspiring to illegally convert campaign money to personal use.

Florida Property Division and Dissipation

I have written about equitable distribution in Florida before. In a proceeding for dissolution of marriage, in addition to all other remedies available to a court to do equity between the parties, a court must set apart to each spouse that spouse’s non-marital assets and liabilities.

When distributing the marital assets between spouses, a family court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors.

One of the factors to consider is the “intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition.

As a general rule, when misconduct during the divorce results in the dissipation of a marital asset, the misconduct may serve as a basis for assigning dissipated assets to the spending spouse when calculating equitable distribution.

The question is whether a spouse used marital funds for his or her own benefit and for a purpose unrelated to the marriage at a time when the marriage is undergoing an irreconcilable breakdown.

Thrown Under the Bus

In a Fox News interview, the congressman firmly put the blame for his campaign shenanigans where it belongs . . . on his wife:

“I’m saying when I went to Iraq in 2003 the first time, I gave her power of attorney and she handled my finances throughout my entire military career and that continued on when I got to Congress since I’m gone five days and home for two. She was also the campaign manager. So, whatever she did, that will be looked at, too, I’m sure. But I didn’t do it.”

Duncan told a Fox News reporter shortly after the indictment that he had given his wife power of attorney when he was deployed to Iraq with the U.S. Marine Corps in 2003, and she handled his finances after that.

The indictment and other court records prosecutors filed in Duncan Hunter’s case before he pleaded guilty last year suggested Duncan carried on extramarital affairs with at least five women — three lobbyists, a staff member and a congressional aid — and used his campaign money to pay for weekend getaways and other outings with them, starting in 2009.

Margaret cooperated with prosecutors during their investigation, and they agreed to seek a lighter sentence. She was sentenced in August to three years of probation and eight months of house arrest, which she began serving immediately.

Duncan was sentenced in March to 11 months in prison, which he is scheduled to begin serving Jan. 4. His lawyer said he will do his time at the Federal Correctional Institute La Tuna in Anthony, Texas. Duncan resigned from his seat representing the 50th District in Congress in January.

The San Diego Tribune article is here.

Dr. Dre, Divorce, and Dissipation

Posted by Ron Kauffman on with 0 Comment

Rapper, Dr. Dre, and his wife Nicole Young’s divorce is in the news again as she is alleging dissipation in court documents, that Dre “secretly” transferred “valuable trademarks” they jointly owned — both the name “Dr. Dre” as well as his hit album The Chronic— after allegedly kicking her out of their home in April.

Dissipation

What’s the Difference?

Some couples divorce amicably, recognizing that a divorce is best concluded when they come to a quick and fair resolution as soon as possible so they can get on with their lives.

For other couples, divorcing is a lot more difficult. In high conflict cases, greed, anger, and spite are overwhelming, and the process can quickly spiral into all-out war fought over every dollar.

A common dirty trick in divorce is to “dissipate,” or waste, marital assets. When a person tries to dissipate assets, it means they are intentionally squandering marital property to prevent his wife from getting her fair share of it in the divorce settlement.

In the lawsuit, Young alleges that shortly after being “forced to leave their family home,” Dre, 55, registered a new holding company and then began transferring “highly valuable trademarks,” misrepresenting himself as the sole owner.

“Andre’s plan all along was to deny Nicole’s ownership rights,” the lawsuit alleges, claiming that the transfers were made before Dre threatened to file for divorce on June 27. Young went on to initiate proceedings two days later, on June 29.

Although Young claims she has “demanded return of the trademarks,” Dre has “failed and refused to do so. It is inequitable and unjust to retain ownership of the trademarks, and the value they hold, without paying Nicole or allowing her to maintain her equal ownership,” the lawsuit alleges.

Young is seeking damages in an amount to be determined at trial and wants the trademarks in question to be transferred to a trust.

Florida Divorce Fraud

I’ve written about various aspects of divorce and fraud before. In Florida, courts distribute the marital assets, such as bank accounts, between parties under the premise that the distribution should be equal, unless there is a justification for an unequal distribution.

Some of the factors to justify an unequal distribution of the property include things like the financial situation the parties, the length of the marriage, whether someone has interrupted their career or an educational opportunity, or how much one spouse contributed to the other’s career or education.

Another important factor is whether one of the parties intentionally dissipated, wasted, depleted, or destroyed any of the marital assets after the filing of the petition or within 2 years prior to the filing of the petition.

Dissipation of marital assets, such as taking money from a joint bank account, and transferring money and assets into separate accounts. In both cases, the misconduct may serve as a basis for assigning the dissipated asset to the spending spouse when calculating equitable distribution.

Misconduct, for purposes of dissipation, does not mean mismanagement or simple squandering of marital assets in a way the other spouse disapproves. There has to be evidence of intentional dissipation or destruction.

Big Egos

Young, who filed for divorce in June after 24 years of marriage, is asking for nearly $2 million in monthly temporary spousal support and is also seeking $5 million in legal fees, according to court documents previously obtained by People.

Young has claimed that her husband’s “net worth is estimated to be in the ballpark of $1 billion” in the filing, adding that he earned much of that sum during their marriage.

The rapper previously filed a response, revealing that the couple had a prenuptial agreement — despite initial reports that said they did not have one. Young, however, has disputed the validity of that agreement, claiming that she was forced to sign it and that Dre ripped it up, rendering it invalid after they were married.

The People article is here.