Consider Options When Exposing Fraud in a Divorce

Dear Monty: What could someone do to hide the source of funds used to purchase a house with cash? They are potentially breaking the law. My ex-husband declares no income, avoids maintenance and bought a million-dollar home with cash with his new wife. He could claim it is her money, but I know that is false. Is there a way he could get away with it? Any advice or clues are appreciated.

Monty's Answer: Over the past few years, the federal government has created complex and intrusive new regulations to identify, prosecute and penalize individuals involved in many illegal activities. Some examples of illicit activities are domestic terrorism, income tax evasion and child exploitation. State legislatures have introduced and enacted laws to augment or cover conflicts between state and federal law. To better understand the complexity of these regulations, you can look at the Federal Deposit Insurance Corporation's explanation of the Bank Secrecy Act.

WHAT DO YOU KNOW

Your questions suggest that you were aware of your ex-husband's involvement in some nefarious activity, but that knowledge may indicate that you were involved and benefited from his activities. It is also unclear what he was doing that was illegal. Your question is beyond Dear Monty's scope. Although a home is involved, the circumstances require a specialized attorney with experience in similar situations as an excellent source to guide you. When attorneys practice in a specific subject, they have a lot of insight and the learning curve is shorter, theoretically, costing you less. If you decide on this option, several from the list below may not have any cost to you. It is up to you to have a written fee understanding before you engage.

Options

Get on with your life -- Ask yourself if you are better off not spending money, time and energy thinking about him, her or them. Life is too short to dwell on a negative part of your past. Consider visiting a psychologist for help if you haven't already. Drop the idea and move on.

Take a timeout -- Put off doing anything for the moment. Spend time with trusted friends and seek advice from the successful person in your life in both business and life. Reflect on where you want to go from here. Think about how your future will be positive. Set a time limit on the timeout. It could be a month, several months or even a year. Start a journal to record your thoughts and feelings. Then decide.

Become a whistleblower -- Here is a link to the National Whistleblower Center. I am not recommending them. Other sources include the Department of Justice and the Society of Professional Journalists' list of nine organizations that help whistleblowers. You need to be aware of the pros and cons of being a whistleblower. I became aware such an organization existed by researching my response. It sounds like a witness protection program. How the whistleblower programs work suggests that being a whistleblower can be dangerous. Even if your name was never disclosed, and you denied it, your ex would likely believe it was you in the situation you described.

There may be other options to consider. Gather information -- then choose wisely.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur, and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate questions. Follow him on Twitter(X) @dearmonty or DearMonty.com.

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