# Help MY Ex did not comply with the Decree and sold stock



## WWP14 (May 9, 2014)

My ex husband and I were suppose to sell all the stock and split the proceeds to each other. He ran, sold all the stock. How did I find out, I got a letter from the IRS stating I have income that was not reported. The JT sock account was in both names. So I have no idea what to do. I was going to pay all the bills he left me with using that money. Do I have any recourse? Help??????


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## Counterfit (Feb 2, 2014)

When he sold did was there a capital gain or a capital loss?
How much?


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## EleGirl (Dec 3, 2011)

Go to a lawyer and sue him. He owes you the money. 

Many judges will not only order him to give you your fair share, but they will award punitive damages to you... meaning more $$ to punish him for defying a court order.


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## WWP14 (May 9, 2014)

Long Term Capital Gain. We had stocks such as Exxon, American Express, Southwest Airlines, Morgan Stanley, Visa all we bought 2009 100 each through out the year and he sold all for gain in our JT account and transferred the money to a personal account. I mean we bought EXXON at 56, AMEX 32, LUV 9 and now they were all up.


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## Happyfamily (Apr 15, 2014)

EleGirl said:


> Go to a lawyer and sue him. He owes you the money.
> 
> Many judges will not only order him to give you your fair share, but they will award punitive damages to you... meaning more $$ to punish him for defying a court order.


Depending on the state you are in, this can be contempt of court too, and the court can use jail or fines to enforce the original decree, if this was set forth in the original divorce paperwork.

What a monster.


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## Homemaker_Numero_Uno (Jan 18, 2011)

You can write it off as theft.
Then the IRS cannot tax it.

http://www.irs.gov/pub/irs-pdf/i4684.pdf

Go to an enrolled agent.
They will be able to exclude this "income" both from taxation (i.e. deducted as theft) and also to make sure there are no capital gains on it. 

Moreover, the enrolled agent can also make sure that your EX will be held accountable for paying the capital gains on his "earnings" from the theft. Too bad if he doesn't find out until so many penalties have accrued.

You can still sue him for the amount in court, you will then have to report it as income, but you can deduct attorney fees, and it won't be taxed as capital gains, just income.


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## WWP14 (May 9, 2014)

I am so upset. This guy sold all the stock to close on a brand new house he bought in OHIO with his other woman. Is that even legal. He sold the stock in November and closed on his house in OHIO in December. We do not even live in the same state anymore. Is that even feasible?


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## WWP14 (May 9, 2014)

I am in debt up to my eyeballs he left me with. I am trying everything possible to get another job to cover these expenses. I am self employed and I am trying to get another job to stop from filing bankruptcy. And this guy buys a house with savings.


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## EleGirl (Dec 3, 2011)

WWP14 said:


> I am so upset. This guy sold all the stock to close on a brand new house he bought in OHIO with his other woman. Is that even legal. He sold the stock in November and closed on his house in OHIO in December. We do not even live in the same state anymore. Is that even feasible?


Yes it's legal for him to buy a house with anyone he wants to buy it with.

What was the status of your marriage & divorce when he bought the house? Had the divorce been filed yet? Was in settled yet?


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## WWP14 (May 9, 2014)

That part is not what I care about. I care he used the brokerage account and bought a house using that money to close and did not pay me. I do not care about him buying whatever. I wanted my part of the money we agreed to. He sold it all and transferred it into a private account. That is why I am mad. He is moving on at my expense. He already stole all my savings and severance money then you turned around and bought a house with my half. Aw come on.


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## EleGirl (Dec 3, 2011)

WWP14 said:


> That part is not what I care about. I care he used the brokerage account and bought a house using that money to close and did not pay me. I do not care about him buying whatever. I wanted my part of the money we agreed to. He sold it all and transferred it into a private account. That is why I am mad. He is moving on at my expense. He already stole all my savings and severance money then you turned around and bought a house with my half. Aw come on.


I asked the question for a reason. You see it matters very much when he bought the house.

He stole the money from you. You can go to court to get your money back from him. As someone else pointed out you can get the IRS to go after him for all the taxes on the money from the brokerage account.

PLUS... if he bought the house while you were still married, you are 25% owner. So you can force the sale of the house or have them pay you the 25%. Depending on the amount of equity in the house, you could have a nice chunk of money out of it.

In order to get your money out of him you might need to force the sale of that house.


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## WWP14 (May 9, 2014)

Our divorce was final in November. So the I do not own that house but I was suppose to get 2950 cash for medical bills plus half of the proceeds from the selling of the brokerage account. In court I lost the fact that he stole the severance I got for losing my job which he paid off his car and bills. And left me with 1900 from October until January with nothing. I will contact the IRS on Tuesday and get them go after him. I just gotta know do people who do this nothing ever happens? This is just straight diabolical.


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## EleGirl (Dec 3, 2011)

Ok so he bought the house after the divorce.

But .... he owes you $$. Did your divorce settlement say that he was supposed to give you half of the stock?

If the stock was in both of your names why was the sale of it left up to him? You could have taken care of it as well.

Or you could have had the court send paperwork to the place that held the account asking them to split it into two accounts 50/50. 

It's a hard lesson to learn. But in a divorce, never depend on the other person to do the right thing. Just leads to bad outcomes.


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## WWP14 (May 9, 2014)

Yes, it specifically says he has to pay me cash 3900 and half of the proceeds of the brokerage account and he is suppose to pay the taxes on it. That is in the agreement.


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## WWP14 (May 9, 2014)

This is sad I am 44 years old he took my ability to have children, my money and now I am left with debt that should have been covered. I am bitter and he gets away clean. I cant seem to get over how badly I was screwed.


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## Homemaker_Numero_Uno (Jan 18, 2011)

OP, he probably forged your name when he sold the stock.
You need to track down the papers from the sale of the stock.
If it was in a brokerage account with both your names, and signature was required for sale, you can hold the brokerage firm liable as well for the theft. 

If it was an account that didn't require both of you signing, it should have been.

How much are you talking about here?
Is it a lot?

The amount you lost will determine what you should do, whether it's worthwhile to go after it.

You need an enrolled agent, by the way, the IRS is not going to be concerned about his theft, they will be concerned that stock that belonged to you was sold and now you owe taxes. Do not talk to them, you will make your situation worse. 

Talk to an enrolled agent who can actually help you. 

And get the sales paperwork from the brokerage account, see if your name was forged anywhere. That is a separate criminal offense.


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## EleGirl (Dec 3, 2011)

You have the power to not let him get away with it. Take him to court. Since he is in contempt of court, you can petition the court to have him pay all your legal fees to collect what he owes you.

You are in control here. 

By the way I know you think that 44 is old.. you are young sill. I'm 65. You have at least half of your life ahead of you.


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## TiredFamilyGuy (Jan 18, 2014)

OP, really sorry for you. 

You are raging and in pain and worry. But this problem can be solved:

He broke the legal agreement. You can find out to the penny what he owes you as your name is on the brokerage account. You then sue him for that plus costs. You know where he is, and he has a fixed asset, so he can't avoid what's coming. That's the legal side sorted.

Downside: it won't be quick. So start that now. 

Sorry you wasted your youth on this guy. But 44 is not old. Be glad you're not 56. Get the logistics dealt with, and mentally disengage.

Good luck, OP


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## honcho (Oct 5, 2013)

Speak with an enrolled agent, they understand the rules of the IRS much better than you and by the time you get done talking to the IRS your head will just be spinning and get nowhere. Enrolled agents can speak to the IRS on your behave, CPA’s and most regular tax accountants cant. 

You could fall under a bad debt expense scenario, a distressed spouse angle. Several different ways and the EA can figure that out and hold the IRS at bay better than you. You will probably need to sue your Ex in order to reclaim the monies which will mean a new court hearing as this has now moved out of divorce court.


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## turnera (Jan 22, 2010)

He took money. He didn't take your dignity. Buck up and sic the IRS on him. They'll get it back for you.


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## PBear (Nov 16, 2010)

Have you talked to a lawyer about this? I'm not one, but I suspect (hope?) that with having things laid out the way you have, you can she him for the money he swindled from you as well as legal costs to recover it. But the first step is talking to a lawyer and getting a plan put in place. 

C
_Posted via Mobile Device_


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## WWP14 (May 9, 2014)

PBear said:


> Have you talked to a lawyer about this? I'm not one, but I suspect (hope?) that with having things laid out the way you have, you can she him for the money he swindled from you as well as legal costs to recover it. But the first step is talking to a lawyer and getting a plan put in place.
> 
> C
> _Posted via Mobile Device_


Yes, the lawyer told me to go to court for the warrant in debt and ask for a trial that should give me more time. It will allow me to pay the debt off before going to trial. I was also advised to ask in writing for a copy of the original contract and notify them that you are now divorced and give him his information and explain that he just bought a home in December 2013. That signals that if he is stable enough to buy a home he can pay the debt.


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## Toshiba2020 (Mar 1, 2012)

sorry to hear about your situation. if he owes you money then it doesnt matter if he bought a house with it or lit it all on fire, it doesnt matter he must pay you that money he owes you. get a lawyer and sue him for every penny he owes.


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## PBear (Nov 16, 2010)

WWP14 said:


> Yes, the lawyer told me to go to court for the warrant in debt and ask for a trial that should give me more time. It will allow me to pay the debt off before going to trial. I was also advised to ask in writing for a copy of the original contract and notify them that you are now divorced and give him his information and explain that he just bought a home in December 2013. That signals that if he is stable enough to buy a home he can pay the debt.


So, have you followed the lawyer's advice?

C
_Posted via Mobile Device_


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## WWP14 (May 9, 2014)

PBear said:


> So, have you followed the lawyer's advice?
> 
> C
> _Posted via Mobile Device_


Yes, I did. The only thing I am worried about is the fact that if I go the court, the judge will try to make me admit that I infact owe the debt. I do not know what to do for that one.


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## PBear (Nov 16, 2010)

WWP14 said:


> Yes, I did. The only thing I am worried about is the fact that if I go the court, the judge will try to make me admit that I infact owe the debt. I do not know what to do for that one.


And what does your lawyer say about that question?

The judge is there to get out the truth. That's all. They're not there to pin the blame on anyone in particular, especially if they're not responsible or guilty. 

C
_Posted via Mobile Device_


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## survivorwife (May 15, 2012)

WWP14 said:


> Yes, I did. The only thing I am worried about is the fact that if I go the court, the judge will try to make me admit that I infact owe the debt. I do not know what to do for that one.


Are you referring to the IRS "debt" (taxes) that are due on the stock?

Since you did not receive the money, and this is proven in court, then you would not owe the taxes. If you are rightfully awarded your half of the proceeds from the sale of the stock, then yes, you would then owe the taxes on your portion - EXCEPT - if the Judge orders that ALL the taxes be paid by your EX as compensation for the EX stealing the money. Also as compensation, your EX should have to pay all your legal expenses associated with this debt collection.

You can't owe taxes on money that you did not receive.


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## whatslovegottodowithit? (Jan 6, 2013)

Call the IRS and/or check online for information on the "innocent spouse" provision. If you did not benefit, you have a real shot of being forgiven. But please, please get in touch with the IRS or else the letters, and eventually actions (lien, wage garnishment, etc...) will not stop until you apply for the "innocent spouse" protection.
_Posted via Mobile Device_


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## WWP14 (May 9, 2014)

Thank you for all your advice. I have a question. What kind of man does these things and then feel like he owes me nothing? Then turns around to start a new life with the mistress. How many of these relationships really last this way?


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## arbitrator (Feb 13, 2012)

*Report it immediately to your attorney!

Bottom line ~ he'll be court-ordered to immediately retroactivate the transaction and will likely face a precursory couple of days of court-ordered jail time as punishment for contempt of court; just as any lawyer would have to do for disobeying the order of the court!*


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## chillymorn (Aug 11, 2010)

hes betting your too messed up from him leaving to do anything about it.

consult your lawyer. tell him to be bad a$$ about it try every possible avenue to get whats yours. it will take awhile mean while just keep on keeping on the sun will still come up everday and eventually you will get a nice win fall.
start eating right and exercising start the next chapter of your life. you will get throught this and be happier in the long run!!!!


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