This happens from time to time. A wife comes in and reveals that her trusted husband and confidante of two decades (her beloved Valentine “Adam”) has refinanced the real estate, but she has no idea how he did it without her signature, or what he did with all the money.
If this happens during a divorce proceeding, or immediately preceeding it, the “innocent” spouse can ask the court to order her husband to provide an accounting of the closing and where all the money went.
If he has any of the loot left over, the judge may order the balance put in escrow pending the outcome of the divorce. If he spent all of it on God knows what? Then the wife’s share of the distributive estate will reflect this transaction.
So if the marital estate to be distributed is $100,000, and the judge orders a 50/50 split, and the amount in question is $50,000, then the wife may be $75,000 in the settlement, and the husband may be $25,000, to account for the wrongful dissipation of the assets during the pendency of the divorce.
And that would be fair. I think.