A man is suing his former wife for a do-over in their 2006 divorce because it later came to light that the funds the couple had invested  and supposedly accrued in Bernard Madoff's sham investment firm did not exist. The husband argues that the division of assets and spousal support should be re-divided with the new information that the couple was a victim of fraud.

Bernard Madoff is currently serving the rest of his life in jail for his gigantic Ponzi scheme that robbed unknowing investors of thousands and millions of dollars, supposedly even his own brother who worked with him but claims he didn't know about the fraud.

Some people argue that people like the brother and this former husband should have known that the supposed returns on their investment were too good to be true. Some also say that the former husband just made a bad investment decision and should live with it. At the time of the divorce, the husband took out some of his investment with Madoff to pay his wife cash and kept the rest of his money with Madoff's firm.

The husband's attorneys argue that it wasn't a bad investment, but fraud and it needs to be taken into account in a proper and fair division of assets. When the assets were divided following the divorce, the money that was counted as invested in Madoff's firm did not actually exist. It seems likely that a re-evaluation will need to take place, but it will be interesting to see what happens.

Source:

Why Madoff Victim May Have a Case for a Divorce Do-Over (Deal Book)