Your husband commits insider trading — Now what?

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NYSE trading floor

NYSE trading floor


There could be a bull market for divorce lawyers from marriages falling apart due to financial fraud or insider trading by a husband or wife.

 Most of the time the husband is the one committing fraud and the wife is either a victim or left with damages or even both.
New York is now a no-fault state for divorce. The wife of a husband who has committed insider trading can move forward to end the marriage based on no fault grounds. Before the change in law, insider trading would most likely not have qualified as sufficient action for a divorce. To end a marriage based only on that would have almost surely required a long trial that would have been costly in every meaning of the word, ranging from expensive lawyer, splitting up martial assets and to the trauma of children having to testify.
But that impediment is now gone.

By abolishing the requirement to prove fault or reason for divorce, divorcing couples and the courts will no longer have to waste resources deciding and litigating whether a marriage should end. Instead, almost ex’s and courts will devote resources to issues such as the welfare of the children, fair division of marital assets and other economic concerns. The no-fault divorce law gives green light to recently divorced couples to quickly move on with their lives and allows them to return to healthy emotional state of mind as fast as possible.

That could easily result in many more divorces as insider trading is a betrayal of confidence at every level. From the investing public to the employer to the client to a wife of inside trader, all are harmed greatly by insider trading. It is hardly a limited occurrence. Over the last five years, there have been more than 400 people accused of insider trading by the Securities and Exchange Commission and the Department of Justice. There could be many more now since it could result in a divorce.

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Anna Timone (195 Posts)

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