Stephen Stagliano Denies Fraud in DeAnna Pappas Divorce Battle

When a marriage falls apart, the money fight is often just as messy as the emotional one.“The Bachelorette”star DeAnna Pappas learned that the hard way, accusing her ex-husband Stephen Stagliano of hiding assets and committing fraud during their divorce. But on May 27, 2026, Stagliano fired back through court documents with his own version of events—and it’s a lot less sinister than fraud sounds.

According to his legal response, Stagliano didn’t deliberately try to deceive anyone. He admits he withdrew money from his retirement account, but his reasoning was straightforward: he needed cash to survive. Bills piled up, his kids needed support, and the money went to covering living expenses rather than getting hidden in some offshore account. More importantly, he claims he didn’t even realize he was violating any court orders or acting improperly when he made the withdrawals. Whether that defense holds up is another matter entirely, but it’s the kind of detail that matters when a judge is trying to figure out intent.

Here’s where it gets complicated, though. Stagliano doesn’t dispute that he owes Pappas a significant amount—there’s no denying the debt itself. What he’s pushing back against is the fraud accusation and a reported comment he allegedly made about not needing anyone’s permission to use his own money. He says he never said that, and given how damaging those words would be in court, it makes sense he’d deny them.

The court documents also paint a picture of a man in financial freefall. Stagliano claims to be“in substantial financial distress”but insists he’s still making spousal support payments while hunting for employment and trying to stabilize what’s left of his finances. He’s apparently willing to work with Pappas to complete the transfer of funds she’s owed—assuming he can actually pull together the money.

Right now, the judge hasn’t ruled yet, which means this fight is far from over. The real question hanging over this case: is Stagliano a guy who made bad financial decisions during a rough patch, or did he know exactly what he was doing and tried to hide it? The court will have to sort that out.