He lay on the floor with his head in his hands sobbing that he had "lost everything", the court was told.
"Nicole was in total shock as she had never signed a mortgage and the property is in her name and is hers," prosecutor Glen Cash said on Monday.
Perrin had been a "very successful man" and lived an enviable life before he declared himself bankrupt in March 2009, Mr Cash added.
He was a qualified lawyer before becoming CEO of Billabong and sold his shares in the company for A$33m.
But Perrin began to have cash flow problems in 2008, which allegedly led him to increasing his credit to the total value of A$13.5m.
His wife had no idea they were having any financial issues, the court was told.
He allegedly lied to her about their finances, telling her that one investment in China was for A$2m when in fact it was for $56m.
The couple, who have three children together, are now divorced. Perrin has admitted signing Nicole Perrin's name on the documents but claims he had her permission to do so.
"He honestly and reasonably believed he was entitled to write her name on those documents," defence lawyer Andrew Hoare said.
