Bernard Madoff Ponzi Scheme Could Lead To Divorce Do-Overs
NEW YORK (WCBS 880) - In a 2006 New York divorce case, the ex-husband says the millions of dollars that went to his ex-wife came from a Bernard Madoff account that never really existed.
The New York Times says there are at least two cases of this kind, one before a New York appeals court.
Some experts worry about a can of worms effect.
But law professor Lawrence Cunningham expects a narrow ruling.
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"The court may decide that given the importance of finality and divorce, that a special rule ought to apply or heightened standard for ripping up a contract ought to apply," he says. "If people, after the fact, figure out that the values they thought they were trading were different, that could rip open every contract."
"I don't think it's going to upset lots of divorces because the facts are so rare and so unusual," says divorce lawyer Raoul Felder, who is not involved in either of the cases. "It will affect other Madoff divorces. It would only be effective in these kind of extreme situations."
He predicts a limited effect, but one expert says, this could "open the floodgates."
