de Beer & Associates, P.A.

free initial consultations | email Us

local: (651) 714-2378

Court rules against Hecker's ex-wife in settlement dispute

Divorcing and splitting marital property can become rather tricky when working with a significant amount of financial assets. These types of settlements can become exponentially more complicated when dealing with issues of financial insecurity.

The ex-wife of Denny Hecker, a former Minnesota auto magnate, has hit a legal road-block with certain aspects of her divorce settlement. A state appellate court recently determined that she would not money that was included in her divorce settlement.

Denny Hecker is widely known for pursuing dubious financial activities, for which he is currently serving prison time. At the time Hecker became embroiled in his legal issues, he had massive debts. When he filed for bankruptcy, he owed nearly $476 million to Chrysler Financial. The Minnesota court determined that the $72,212 that was intended for Hecker's wife would go to pay off a portion of that debt.

The problem began when Hecker illegally liquidated and spent money from a retirement account. A friend lent Hecker the money to pay back money from that transaction. As part of their 2009 divorce settlement, it was determined that the ex-wife would receive $72,212 from that retirement account. However, by ruling that the money given to Hecker was a "non-marital cash gift," that cash was no longer exempt from creditors.

Hecker's divorce case is especially complicated because of his legal issues, but there is definitely something that divorcing couples can learn from this scenario. The ex-wife did not receive what she believed was owed to her because of a misunderstanding of the marital assets in light of other legal matters. This highlights the importance of having a trustworthy divorce attorney. When divorcing couples are in the process of complex asset division, it is important for them to have knowledgeable legal counsel. The headaches of asset disputes and lengthy litigation can be minimized if the right steps are taken.

Source: Star Tribune, "Hecker's ex-wife loses out on retirement cash," Dee DePass, Feb. 6, 2012

No Comments

Leave a comment
Comment Information