Peter Lattman describes what could be a potentially huge - and wholly unexpected - fallout from the Bernie Madoff fraud. According to "Madoff Victim Seeks Divorce Do-Over" (New York Times, May 30, 2011), jurists will soon have an opportunity to decide the fate of a woman who thought the official end of her marriage was a fait accompli. However, if her ex-husband wins his plea for a revised settlement, Ms. L. Blank may be completely overhauling her plans for the future and couples everywhere will be asking if final decrees are in jeopardy.

Furthermore, should Mr. Simkin win his lawsuit to change the terms of his divorce settlement so that the former Mr. and Mrs. equally feel the pain of Madoff-related losses, no doubt changes will occur with respect to the use of financial experts. Specifically, it would make sense to involve a knowledgeable independent third party at the time that divorce negotiations are taking place. Arguably that person could help with asset allocation decisions as well as due diligence of the kinds of investments up for grabs.

Reader's Note: Though not related to Madoff or fraud, "Complex Compensation Issues In A Divorce," co-authored by Susan Mangiero and Lili Vasileff explains the role of a financial expert and the many types of economic arrangements that must be valued or otherwise analyzed as part of the quantification of assets that could be split. Since 2010, BVA, LLC was renamed Fiduciary Leadership, LLC.