Twitter's phenomenal growth since it was introduced in 2006 is a story of friends collaborating on a project with the intention of changing the world. Any Orange County resident who invested in Twitter back then has probably experienced some of that change, reaping a huge return on even a small investment.
When such investments are not disclosed during divorce proceedings, however, any court-ordered child-support arrangement could be in jeopardy later.
This is the case of a 47-year-old Brooklyn man who is suing his ex-wife because of her alleged hidden Twitter investment. Apparently the man learned that his ex-wife, now 46, had bought the Twitter stocks without telling him during their marriage. He claims she secretly met her first ex-husband, one of the founders of Twitter, in California to invest in the company
In his court filings, the New York man alleges that as one of Twitter's first investors, her initial contribution of $10,000 to $50,000 would have a current value between $10 million and $50 million. The man says this undisclosed wealth should have been considered part of the couple's marital assets and should have been disclosed during the couple's 2007 divorce.
Without this investment being known to the court, the ex-husband was ordered to pay child support for their twin boys. In his court documents, he states that he is paying $2,465 each month in child support. The man wants to recover the $120,000 in the support he has already paid and 30 percent of his ex-wife's Twitter shares.
Full disclosure is a strict requirement for both spouses during divorce settlements. Both parties should list all assets, sources of income and earnings so that a court can fairly determine property division and child support. Failing to disclose assets such as investments may lead to modifications in child-support orders and divorce settlements.
Source: New York Post, "Ex bitter over Twitter stock sues," Julia Marsh, Nov. 26, 2013