Background:
- Doctor’s Wife was the Manager of his medical practice office.
- Wife over time diverted approximately $340 thousand for her own use and in her own accounts.
- This was community property and her husband (Doctor) trusted her.
- Judgment of Divorce was eventually filed.
- Husband became aware of the “recordkeeping and banking practices” of his wife.
- Superior Court found that the wife owed her husband $274,605 plus interest and attorney’s fees.
- Ex-Wife files for bankruptcy so she would not have to pay this money back.
Outcome:
- State Court judgment was excepted from discharge; could not be relitigated in Bankruptcy Court.
- Ex-wife required to pay back her ex-husband and could not defraud the Doctor
When you steal from someone, even a family member, bankruptcy court is not the place to go for relief.