From a different article/source:
There were two trusts.
1. Transfer marital assets into a trust benefitting both of them. At that point they ceased to be marital assets and are assets of the trust (to avoid paying taxes).
2. Transfer assets from one trust benefitting both of them into a trust benefitting only him. The article notes South Dakota law doesn't require he tell her of this transfer.
So the assets ceased being marital assets once they were placed in the first trust. Depending on how that trust was administered, the husband may or may not have had the authority to transfer funds to a second trust. My money is on him having that authority (somewhere in a footnote on page 312 of the trust document) because he's a dirtbag tax cheat/adulterer, and dirtbags usually have good lawyers.
But the issue can hinge on two things:
If you transfer all of your assets to someone or something else in order get out of paying, the transfer itself is what the lawyers can go after as fraud. (Tiger King and his mom; his mom got hung in the courts when he tried to do this.)
Imagine having money/income/assets to get issued a 1 million dollar credit line, running up that bill, then transferring everything to an LLC/Trust run by your friend and trying to declare bankruptcy. They'll just claw it all back and say the transfer was illegal.
So this case will probably hinge on that. If they can show that he did this purely with the intention of not paying out to a divorce he was planning and what purpose the trust is supposedly for (and if that reason/purpose is convincing.)
OR
He may get into trouble by not paying taxes on the money he made to generate the assets put in the trust. Or if business and personal assets were commingled along the way. If fraud is involved that means the statue of limitation goes out the window. And believe it or not more people get in trouble with the IRS by not retaining a lawyer and not keeping their mouths shut. I don't think this lady is going to keep her mouth shut if she doesn't get paid. There is no dumb blond defense.
But my pity for her is waning:
As Quantlab grew, so did the Bosarges' wealth. They built a 37,000-square-foot home in Houston called Chateau Carnarvon, which had its own hair salon, massage room, music room and theater. Some rooms were filled with gold leaf, tapestries and paintings.
They had five properties in Maine, one in Aspen and a luxury flat in London. They bought a succession of sailing yachts, including a 180-foot superyacht named Marie. Since she liked to play piano, they had a grand piano permanently fixed to the floor of the yacht "so it wouldn't slide around," she said.CNBC Article about it~egon