business

If former auto mogul Denny Hecker can afford the girlfriend, he can afford the wife, a judge said Wednesday.

Hennepin County Judge Jay Quam released an order requiring Hecker to pay estranged wife Tamitha Hecker $7,500 a month, plus medical expenses, pending resolution of their divorce after 15 years of marriage and two children.

Although Hecker claims to be broke and unemployed, Quam didn't see it that way. He said records from Hecker showed an "outflow of money far beyond what one would expect of a bankrupt person" as well as the transfer of $80,000 to Christi Rowan, with whom Hecker lives, over the past three months.

"If Mr. Hecker can manage to provide his romantic companion with $30,000 per month, the court believes that he can pay $7,500 to the mother of his children," Quam wrote.

In his seven-page order, the judge also required Hecker to appear in court on Dec. 10 to explain why he shouldn't be held in contempt for cashing out a 401(k) worth $125,155 and spending the money. Quam again wants Hecker to explain where the money went.

"What especially frustrates the court is the ease with which Mr. Hecker has apparently disregarded his obligations under Minnesota law: Not only should Mr. Hecker have known that he couldn't unilaterally liquidate and spend the couple's retirement assets, but he must have known that those actions" would draw scrutiny, Quam wrote.

Hecker saw his auto empire implode in the fall of 2008 along with the nation's economy. The couple filed for divorce last spring. In June, Hecker filed for personal bankruptcy in federal court, claiming $18 million in assets and $767 million in debts.

Pleas of poverty

Tamitha Hecker sought the spousal and child support under what she said was an enforceable agreement signed during the marriage. Hecker claimed that the agreement was void and that he didn't have the money to pay her even if ordered.

In his order, Quam noted that before they were married in 1994, the Heckers agreed that Tamitha wasn't employed and if she were, she would "have minimal earnings based on her skills and experience." She did not work outside the home during the marriage.

Quam brushed aside Hecker's contention that his estranged wife should reduce her monthly budget. The judge said her request was reasonable in light of the Heckers' "historical standard of living, which was beyond imagination for most."

He didn't agree with Hecker that his wife had inflated her needs. "He claims that his monthly expenses are approximately $24,500. And given the money he has spent over the last four months since filing for bankruptcy, he appears to be living much larger than that," Quam wrote.

Hecker also claims that Tamitha Hecker has jewelry, cash and fur coats worth about $200,000 that she could liquidate to support herself. Quam disagreed.

"Though Mr. Hecker seems to be spending his supposedly limited assets as if there will be no tomorrow, it would be imprudent for the court to require Mrs. Hecker to do the same," the judge wrote.

He has required Hecker to submit details of his financial situation, including from where he was receiving money and how he was spending it.

Among Hecker's expenses since filing for bankruptcy: $27,500 for vacations and $72,500 to Rowan for "household expenses."

This month, Quam found Hecker's initial financial reporting to be "woefully short" and gave him a week to provide more detail or face sanctions. The judge remained unsatisfied with Hecker's information.

In addition to ordering more information on the liquidated 401(k), Quam ordered that Hecker's remaining 401(k), valued at $82,968, be turned over to Becky Toevs Rooney, his estranged wife's lawyer, for safekeeping until the divorce is settled.

Hecker's lawyer, Bill Skolnick, didn't return a call. He and Hecker have consistently claimed in court hearings and documents that Hecker doesn't have the money to pay Tamitha Hecker.

Quam said in the order that Hecker already has been held in contempt in federal court for failing to produce sufficient financial information. He faces numerous legal actions against him and is the target of a federal criminal probe.

Walser gets OK to buy assets

In another development on Wednesday, a judge hearing the Hecker bankruptcy case reversed himself and ruled that Paul Walser's Walser Automotive Group will be allowed to buy the assets of Hecker's coveted, but closed, Toyota dealership in Baxter, Minn.

In a written statement, Toyota officials said they hoped to reopen the dealership on Friday.

The bankruptcy judge also permitted TCF Bank to buy -- for $65,000 -- furniture, electronics and appliances from the Medina home Hecker formerly shared with his estranged wife .

Staff writer Dee DePass contributed to this report. Rochelle Olson • 612-673-1747