Duane Martin and Tisha Campbell Martin are battling a divorce and bankruptcy simultaneously, and Jada and Will Smith have been pulled into the chaos.
The “Above the Rim” actor is being accused of hiding millions of dollars in assets, and a bankruptcy trustee accuses him of hiding $2.6 million under a company named Roxe LLC, the Blast reported.
Will Smith and Duane Martin during Usher’s 25th Birthday Bash “Flashback 1978” – Arrivals at Pearl in West Hollywood, California, United States. (Photo by Jean-Paul Aussenard/WireImage)
Duane purchased a Chatsworth, California, mansion for $900,000 in 2006 and borrowed $1.9 million from the bank to remodel the home. However, Will and Jada are being named in the bankruptcy because when Martin defaulted on the payments the trustee claims he used Roxe LLC, which is owned by his brother and tax preparer, to do a short sale and buy back the mansion with a $1.4 million loan from the famous couple.
Therefore, Roxe LLC became the sole owner of the “Martin family home” and Duane and Tisha arranged an agreement to rent their home from the LLC for $5,000 per month.
The trustee claimed that entire lease with Roxe LLC was a scam and the Martins is using the LLC to hide their assets. Duane placed the mansion for sale earlier this year at $2,695,000. If sold, this would allow him to pay back the Smiths and pocket $1.3 million.
The bankruptcy official ordered Duane to hand over his assets to pay back his outstanding debts.
Tisha filed for divorce with Duane after 21 years of marriage. The couple shares two children together and are seeking joint custody. Both partners are demanding spousal support from one another.
