In February 2009, I posted a blog entry entitled "The Madoff Mess Hits the DIvorce Court." In this case, in June 2006, the parties agreed to evenly split the $5.4 million in an account they had with Madoff Securities. As a result, the husband gave the wife $2.7 million in cash, and retained the account. As a result of the Madoff Ponzi scheme that has essentially rendered the account worthless, the husband filed suit seeking the $2.7 million that he paid the wife. The husband (a prominent attorney with a large NY law firm) alleged that because the account turned out to be valueless, the spirit of the agreement was broken. The wife’s position was that the husband withdrew probably $3 million to pay the wife, so the asset did exist at the time of the settlement agreement. In December 2009, I blogged on the decision which was in the wife’s favor, essentially because the husband could have redeemed the account for the agreed upon value from the time of the divorce up to the Madoff collapse.
Based upon this blog entry, I was interviewed about this case by Mark S. Gottlieb, CPA for a podcast on his website. Mark is a forensic accountant and business valuation expert with offices in Great Neck, New York, Stamford, Connecticut and Roseland, New Jersey.
To listen to the podcast, click here.