January 2010 Archives

Division of Marital Assets Cannot Be Changed Post-Madoff Fraud

January 22, 2010

As part of the parties divorce settlement, the husband kept an account held by Bernie Madoff and his firm. Upon learning of the Madoff fraud, the husband asked the court to reform the agreement to divide the parties' assets as the Madoff account was worthless or non-existent. After finding that the parties' agreement was comprehensive and left no place for modification, and found further that no mutual mistake could be found as the division was fair when made, the court denied the reformation.