Wharton Firefighter's Assets Frozen

HOUSTON - It's one of those picturesque towns that would be the perfect setting for a Lifetime movie: You have the drama, a scandal and even the angry townspeople.

At the center of this controversy is Nikki Araguz, the woman who was born a man.

She's fighting over her husband's death benefits and insurance.

Araguz said, "Let me take off my glasses and look at all of you...My husband knew my entire history."

Thomas Araguz died fighting a fire just months after his family said he learned his wife was actually born a man. He wanted a divorce.

Raquel Araguz is Thomas' sister.

She says, "When I first saw her it was kind of odd. She was kind of odd."

Araguz's mother has filed suit to void her son's marriage. They were in court Friday where attorneys learned Araguz had already pocketed $60,000 in death benefits from her husband's demise.

She's spent at least $1,200 so far.

Ed Burwell represents Araguz's sons.

He says, "I would say we're very fortunate...benefit of the children."

Attorneys say Araguz did not attempt to share that $60,000 with Araguz's two sons by his first wife Heather Delgado.

Araguz says, "I love those children as much as I had given birth. "

A Wharton County judge ordered Araguz to turn over the money until its decided if she is legally the widow of the fallen firefighter.

Thomas Araguz's estate is valued at just over $600,000 in death benefits.

The judge will also allow Araguz's sons to dip into those frozen assets for support.