I suggest that you pay an attorney for a consultation and review all of these things in detail with the attorney. If your wife is judgment proof, there is little point in suing her. You may need to get some form of a restraining order or have your attorney write her a cease and desist letter. Your business attorney should investigate the denial of your business license.
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I am so very sorry for your situation, and I empathize with your plight.
Sadly, as noted by my esteemed colleague, if the ex-wife is “judgment-proof” (meaning she has no asset that could be sold to satisfy any judgment in your favor), there is no real point in suing her – and while you may now say it is “worth it on principal” when it comes time to pay the legal bills incurred in the pursuit of such a claim, you most likely will change your mind on this point.
This could, quite easily, cost you in excess of $20,000.00 or more, all of which you will have to pay out of your own pocket – and, yes, while a libel case is a “personal injury” case, where attorneys typically enter into contingent fee agreements – doing so, from an attorney’s perspective, is a business decision – and one just does NOT take on or agree to a contingent fee agreement UNLESS there is some certainty that the defendant (here your ex-wife) has assets to satisfy any such judgment.
At the same time, you should seek and obtain a restraining order from the appropriate probate & family court to prevent her from making such false allegations in the future – which also has some inherent problems.
Best wishes to you and your children – and, if it is any consolation, the children always figure out which parent is “playing games” and which one truly cares for them – but the satisfaction you will one day reap from that is very far away now…. But, still, try to stay calm, and to be there for your children – in the long run, it is very much “worth it.” God Bless!
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