X ripped me off for $49,000.!
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| Fri, 06-01-2007 - 10:34pm |
Sent this email to my lawyer yesterday... Background: X received the business, I got the house-- and it's mortgage, which turned out to be TWO mortgages. I just found out that the 2nd mortgage was used for the business. For months, X said that the house had 65K remaining on the mortgage, then all of a sudden last summer, the number went up to 110K. I kept asking my lawyer why did it change-- the number, that is...
"I happened to be talking with my mom the other day, and I mentioned that I've taken over the 2 loans... She was unaware that there were 2 loans, so she asked what the 2nd loan was. I told her that it was a line of credit. She told me that with that type of loan, the lending institution gives you a checkbook, and it's like a credit card. I told her that I've never seen any of the checks, and to my knowledge, I thought the bank gave us a lump sum, and X paid for some household things with that. Until this day, I have not seen these checks. My name is on them, but I did not know that they existed. I presume that X still has the checkbook in his possession.
Anyway, mom suggested that I get copies of the checks written on this account, so I called the bank, and the checks arrived today.
Five checks were written on this particular account (this is the 50,000 loan). All of the checks were written for the self storage business:
Check # 1001 9/20/2002, for fabrication deposit self-storage building: $3,175.00
Check 1002 9/20/2002, 1/3 payment for concrete slab for storage bldg. $8,765.00
Check 1003 9/24/2002 Town of XXXX, for building permit for storage $1,900.00
Check 1004 10/10/2002 Cash (Building C.O.D.) $34,675.00
Check 1005 12/30/2002 Dell Financial Services (home computer, but was used for storage) $1,572.00
The final withdrawal was on 10/5/2006, for a heating duct register for the house, $81.21
Now... the computer listed and the heating things were for the house. The total of the storage-related purchases are: $48,515.00 This is not right-- WHY am I paying for the storage loan? So far this year, I have paid $1,025.12 on this loan, which was not used for the house, except for the $81.21 for the heat register. The computer has always been located at the house. The cost for the computer and the heat register (both of which are in my possession, and I will keep them) is $1653.21. The difference between that amount, and what I've paid so far this year is $628.09 that is still owed."
And the 2nd one I sent her today, after further research:
"Mom and I sat down last night, and went over all the mortgage papers.... what I did was to write a check to the bank for $999.84, which, combined with what I've paid out so far this year, is my share of the cost of the heat register and computer.
We also learned that in the FIVE years that we've had this line of credit, 49K is STILL owed on it! X has only paid the finance charge for all these years-- the most he's paid on the principal was about $200. I have a copy of all the transactions for this line of credit.
ALSO-- At the beginning of 2007, X changed the mailing address on the line of credit from HIS PO box to my home address. When we went to the bank this morning to pay the 2 mortgages, we mentioned this, and the loan officer told me that in order for that to happen, BOTH parties have to sign a paper for the change of address. I DO NOT RECALL SIGNING ANYTHING LIKE THIS. They were going to look into it, and see if there was a change of address on file in their main branch. They looked through the change of address papers at their office, and there was nothing pertaining to us. (I just listened to a message from Robin at the bank, and she said there was a copy of this, and I could pick it up at any time-- I'll see if I can get to the bank tomorrow).
Mom and I also stopped by the town hall, and visited the tax and assessor's office. We looked up X's business valuation. His place is valued at $378,900. My house is valued at $325,000. The difference is $53,900. The fact that I am without a vehicle, had to pay out nearly $3,000 for a rental car (because of X), and am paying for HIS business loan is not acceptable.
Also, in X's long form financial statement, my mom noted that he DID NOT list his business in the assets section. He listed the house and 5 of his cars, but not the SUV (that he repo'd from me), and no business.
Another strange fact is that for nearly 20 years, we received an income tax refund, and this year is the first year that we've ever had to pay. I believe that he has LIED in court documents about his finances and/or assets.
At any rate, the mortgage and line of credit are current. The town taxes are paid for the house. But I do NOT want to be stuck with the line of credit for what is now HIS business. Why the heck was he only paying the finance charges, and not the principal? This is utterly insane. I will no longer pay this line of credit.
Is this going to be part of the court hearing? I have copies from the bank relating to the checks written; the account summary from the bank; and X's handwriting on the bank statements saying it was a "2nd mortgage for the house"... "

My dh is an accountant. He and a close friend and business associate, an attorney, work together often for things just like this. I would suggest that you need an accountant to go over all of this, as well as an attorney. You don't want to get stuck owing the IRS $$$$$ because of joint tax filings that you signed on even if you weren't aware that he lied on those. You REALLY need both an accountant and attorney who specialize in this area of the law to take a look at this before taking any legal action, if there is legal action to be taken.
BTW, my x is into me for $200,000. He makes $37,500/yr. I'll never see my money. I know how it feels! OTOH, my sister just took her x to court for his 50% of educational and medical bills for the last four years even though he's not paid any for the entire 11 years they've been divorced. The judge got so ticked at her x that she ordered that he is to pay 50% dating back to the divorce, period. If you CAN do something about this, you definitely should!
People spend a lifetime searching for happiness; looking for peace. They chase idle dreams, addictions, religions, even other people, hoping to fill the emptiness that plagues them. The irony is the only place they ever needed to search was within. -Ramona L. Anderson
Hi Steph,
Thanks for the advice... I definitely WON'T be using our business accountant, since I do not trust her at all. I'll have to see who I can find to look into this. 50K is a lot of money; and nearly every cent of the line of credit went into the contruction of what is now 100% X's business. The ONLY house expense on that line of credit was the $81.21 for the heat register for my house. And THAT was supposed to be paid by my X, because I gave him lessons on using the storage software!
UPDATES...
Been sending my attorney more info about the line of credit. Keep in mind that our divorce was final last November... X got the business, and I got the house... but since I discovered all this hidden info, the stakes have changed considerably.
Called the assessor's office this morning. X's business and our home are in the same town. At the time of our divorce, X's business (which he did not list on his long form financial statement to the court) was valued at $340,500. Our house was valued at $281,300. The difference is $59,200in his favor. The FY 2007 valuations are 378K for X's business, 325K for the house.
He got the business. It may or may not have a 50K mortgage on it. We believe he has concealed this info.
I received the house. It has a 65K mortgage on it, plus a 50K line of credit, which, it turns out, was spent entirely on the business. I also received 15K in a cash settlement.
We now believe that X may have concealed a loan for the house in the 65K mortgage (it was refi'd in 2002), which he tried to hide in the 50K line of credit.
We also believe that X hid the car loan in the refi... the car that was in his name, which was purchased for me in 1997 as a family car (the car that he drove so infrequently that he didn't know that DS was not allowed to sit in the front seat because of the airbag). The car that he has attempted to repo from me, and in fact came with the cops on 2 consecutive days and removed the plates... and since I am now paying the 65K mortgage, hey, the car should be mine.
My atty's email RE: the SUV: "Susie, I just spoke to X's atty. He said X would hand over the title and I said it was too late. I didn't think you would want to at this point." Still mulling it over. It's 10 years old and needs work, but 20 y/o DS said he wants it. It *could* be used for trade-in value.
Today, my attorney went through my file, and found that X and X's lawyer may have lied about how the line of credit was actually spent. Her email: "I never got a copy of the line of credit statements. X's atty lied. That is what ruins lawyer's reputations. But, we will get him in court (hopefully)... It looks like X lied and said he paid off the SUV with the line of credit when he did not. All I have in the file is the refinancing of the original mortgage. That must have been used to buy the Durango, and pay off debts. That was in 2002... I asked for copies of all bank statement and checks, which would have contained info. Never got them, put in a motion for sanctions, finally got oral explanation." It would have been nice of her to get this stuff in writing, when I asked her about it last year, and she assured me that it was all on the up and up... GRRR, but anyway...
Her email: "We may have to go back into Court and see if we can get some relief. I just sent new motions for attorneys fees and motion for reimbursement of car costs to court and X's atty. I sent you a copy. I will have you sign an affidavit by court time, but the papers have to get filed within 10 days of the hearing."
Now, the questions to be asked are:
1. What is the mortgage on the business? From this new info, it appears that it was not an equitable split.
2. What else has been hidden?
Lots of people backpedaling here-- attorneys, X...
I'll see if I can an accounting of the 65K refi, and see if that sheds any light. I'll stop at the bank tomorrow.
Keep you posted!