NYC millionaire claims he’s now $12M in debt, wife suspects hidden funds — who wins when a divorce drags on?
NYC millionaire claims he’s now $12M in debt, wife suspects hidden funds — who wins when a divorce drags on?
It may come as a bit of a surprise that John H. Foster, managing partner of the $800 million private equity firm HealthPointCapital, claims to be $12 million in debt. It certainly caused his soon-to-be ex-wife, Stephaine Foster, to raise her eyebrows.
While John attributes his financial trouble to Stephanie’s alleged lavish spending, causing his nearly $50 million net worth to fall – Stephanie suspects there’s more to the story.
“He’s asset-stripping the marital estate,” Stephanie told The Post in an exclusive interview.
Stephanie questioned John’s financial struggles, pointing out his indulgent habits. According to Stephanie, the 82-year-old has been flying between Florida and New York for high-end beauty treatments, including Botox, hair dyeing and manicures.
According to The Post, Stephanie’s lawyer, BriAnne Copp, reinforced her skepticism during a recent hearing stating, “While he’s lived a fabulous lifestyle for the last 60 years, now that he’s embroiled in a divorce, now he’s suddenly $12 million in debt.”
As the couple’s legal battle continues to unfold, whether John is hiding assets — and what Stephanie is ultimately entitled to — remains unresolved. But their ongoing disagreement sure is costing them.
In June, Copp alleged that John had been manipulating his finances since the start of the divorce proceeding to avoid having part of his money go to his wife, Stephanie. This accusation came after Stephanie allegedly discovered a text in John’s phone stating his intention to claim he was in debt and leave her penniless after the divorce.
But John’s assets don’t paint a picture of someone in debt. Take, for example, as Copp alleges, his Texas ranch and Gulfstream IV-SP jet. More recently, Copp claims John purchased an $800,000 Hinckley yacht and deposited over $3 million into his account within the last year.
But if John is in debt, what would that mean for Stephanie?
Debt division in divorce can depend on the type of debt and whether it was accrued before or during the marriage, or after the date of separation, depending on the state. A court may also factor in equitable distributions of liabilities according to state law.
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However, if John is fabricating his financial struggles, the consequences could be severe. State laws typically require spouses to exchange detailed information about their financial assets. As part of the discovery process, a spouse could even hire a forensic accountant who specializes in tracing hidden funds.
But as long as neither party budges on their stance in the divorce, the legal bills will keep climbing.
Read more: I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 3 of the easiest ways you can catch up (and fast)
Divorce, especially lengthy cases, can be expensive. On average, the cost per person can be between $15,000 to $20,000 and can increase to $100,000 for more complex cases, according to Forbes.
Celebrity divorce lawyer, Laura Wasser — known for representing Kim Kardashian, Britney Spears and Ariana Grande — warns that the biggest mistake couples make during a divorce is letting lawyers escalate their conflicts.
“The biggest mistake couples make is not owning what’s going on,” she told CNBC in an interview. “If you let lawyers take control of it, remember, we lawyers make money from your conflict.”
Wasser, who charges $1,000 an hour with no discounts, makes it clear that the longer the divorce goes on, the more money it will cost both parties.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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