Making big bucks building rockets for NASA and coming home to a loving wife and three kids in a picture-perfect home, he appeared to have the American dream licked.

But the reality was far more bleak. Laid off from his engineering job and in debt up to his eyeballs, Kyle Wayland Cathcart, 41, was a desperate man.

Facing financial ruin, he told his wife Jodi, 36, an outrageous lie - that a $6 million windfall from a secret lawsuit he had filed would soon solve all their woes.

However, as the day of the supposed settlement arrived and Cathcart still didn't have a job, he allegedly did the unthinkable to avoid facing the music.

'The stress from losing his job and the lies... was too overwhelming. Kyle's ultimate plan was to kill Jodi, then take his own life and leave their children with Jodi's grandparents,' prosecutors alleged in court documents.

When Jodi was found dead in their bedroom in Covington, Washington, on May 1, stabbed 48 times, prosecutors allege Cathcart decided to lie once more.

Court documents alleged he claimed to police she was murdered by a home invader looking for their $6 million payout, but his story quickly unraveled and he confessed.

There could be one explanation for why the father-of-three concocted such a web of lies for his wife: The couple had already stared insolvency in the face. 

Though no civil filings are in either of their names on any databases, documents uncovered by the Daily Mail found they filed for bankruptcy in March 2024.

Despite his $134,139 salary and an extra $1,749.50 a month for fostering their youngest child, now aged three, the family was struggling.

Jodi and Cathcart still owed $384,227 on their three-bedroom, two-bathroom 1,230sqft house bought for $410,000 in 2019 and were more than $55,000 behind on their $3,147-a-month mortgage.

Then there was $40,311 owed on a 2021 Jeep Wrangler, $3,968 across five credit cards, an $11,465 personal loan, and $939 on a charge account.

Their lender, Idaho Housing Agency, was foreclosing the house and there was still $807.75 a month to pay for the Jeep.

Chapter 13 bankruptcy documents put their assets at $600,400 for the house, $36,580 for the Jeep plus Jodi's $6,800 2013 Dodge Ram 1500, just $5,000 for everything in their home, and $5,500 in the bank.

Their lawyers hammered out a payment plan of $2,604 every two weeks to get them off the hook and stave off foreclosure.

After paying $82,670.86 to their various creditors - plus $11,073.14 to trustees and lawyers - the case was dismissed on January 16 this year.

But just as Cathcart thought 23 months of hard work had them out of the woods, his employer, Aerojet Rocketdyne, announced it would be split up and spun off this year.

After five years as a senior quality engineer at the firm - which makes rockets for NASA and other space agencies and missile engines for military - Cathcart was a casualty of the reorganization.

That was the start of a downward spiral that now has him in a jail cell charged with first-degree murder, and his wife in the morgue.

With escalations for domestic violence and allegedly killing her within earshot of their adopted daughter, 7, and son, 5, along with their foster child, 3, he faces life in prison if convicted, even if he pleads guilty.

Prosecutors alleged in court documents he explained the blood in the house to the children by claiming he stepped on a thumbtack, but the older daughter said she thought he cut himself with the knife they saw on the floor. 

Jodi had 14 stab wounds to her head and neck, including one that left the tip of the knife embedded in her skull and others that cut her jugular on both sides.

The autopsy revealed 18 wounds on her hands and 11 on her arms - showing how hard she fought for her life.

King County Prosecuting Attorney Leesa Manion asked in bail documents for an enormous $60 million bond, just in case his story about the lawsuit payout was true.

'Rather than simply ask for a divorce - if he was so deeply unhappy with his life - the defendant chose to stab/slice his wife at least 48 times, with his minor children just a few yards away and in easy listening range of the victim's screams,' she wrote.

Cathcart did not make bail at his hearing on Thursday and he is yet to enter a plea.

Prosecutors were particularly scathing of the lengths he allegedly went to in an effort to get away with murder after failing to kill himself.

Covered in blood at hospital, Cathcart claimed he heard his wife scream for help while he was in the shower about 6.15am.

He said he thought she was just having one of her leg cramps, but when he returned he saw a man dressed in a dark hoodie stabbing Jodi as she lay in bed.

Cathcart told police he charged at the attacker, staring into his piercing blue eyes as he fought for his family's lives.

They were evenly matched, he said - both about 5ft 11in and 215lbs - as the home invader stabbed Cathcart repeatedly in the stomach before fleeing.

He described how he furiously gave chase and threw the man against a wall and punched him until he dropped the knife - one stolen from his kitchen.

'The suspect was then able to get the upper hand on Kyle. He struck Kyle on the face and began slamming him against the garage entry door, at which point Kyle fell unconscious,' police wrote in their report.

Cathcart told them he came to and found his wife dead but his three adopted and fostered children unharmed, and called for help about 7.25am.

During his interview, Cathcart bizarrely volunteered a story about when he tried to smother Jodi with a saran-wrapped pillow after taking Zzzquil in November 2024.

He said the incident, which police confirmed with Jodi's mother and best friend, was why he didn't take any medication.

Cathcart played detectives footage from his doorbell camera showing a man in a dark hoodie - with a white tag showing it was turned inside-out - leaving the house and disappearing down the street.

The detectives pointed out to Cathcart that he was the same height and build as the killer, and asked if he hurt his wife - which he denied, saying that if he had, the footage would have shown him going back into the house.

He also denied owning similar clothes, just a black sweater with 'Karate Dad' printed on it in white, but no black pants. 

Cathcart also explained that Jodi's bloodied wallet was found in the hallway because the killer dropped it during the struggle, claiming it had $800 inside.

The detectives let Cathcart go and returned to the scene to investigate further. 

That was when his terrifying tale allegedly began to unravel.

No sooner had they arrived at the house they realized Cathcart's story didn't add up.

Blood was on the ground near the garage door, close to a keypad that opened it from the outside, and wasn't covered by any of the cameras.

Anyone who knew the combination could get in and out without being recorded, they realized.

Then they spotted a pile of bloodied black clothes in the neighbor's yard, which the resident denied ever seeing before.

One of them was a black hoodie turned inside-out, branded 'Maple Valley Martial Arts Center' and 'Karate Mom' on the back.

Jodi's mother said the hoodie was her daughter's - and she wore it frequently.

Police added it all up: No sign of forced entry, no footage of the killer coming inside, the man leaving resembling Cathcart and dressed in what looked like Jodi's bloodied clothing found next door, and the camera blind spot by the garage door.

Cathcart - they came to believe - wasn't a heroic dad who tried to save his wife, but a killer who had ample time to sneak back inside and call 911.

A warrant for his arrest was finally issued on Sunday, but by then Cathcart was long gone and a public manhunt began.

'If you see this piece of s**t, his name is Kyle he was last seen wearing a tank top and shorts, was barefoot,' Jodi's cousin Scott Spivey wrote online.

'He is wanted for murdering our awesome cousin Jodi.

'And by the way, King County Police... thanks for letting him out of your grasp at the hospital. You could held him for 48 hours WTF?'

Tiffany McKendrick, another of Jodi's cousins, added: 'This motherf***er murdered my cousin (his wife) on Friday. He was released from custody due to a lack of evidence, but now is wanted for her murder.'

Renton Police tracked down Kyle Cathcart in an industrial area late on Monday night and he was handed over to the King County Sheriff's Office.

He was booked into King County Correctional Facility in Seattle at 2.13am on Tuesday on suspicion of murder.

Police alleged in their probable cause affidavit that Cathcart confessed during interrogation to the premeditated murder of his wife.

'On the morning of the homicide, Kyle put on Jodi's clothes, retrieved a kitchen knife, and proceeded to stab her numerous times. 'Jodi fought back but succumbed to her injuries,' they wrote. 

'Kyle stated that he attempted to kill himself with the knife, but the knife was too dull. Kyle then purposefully removed items from Jodi's wallet and fled out the front door to stage a burglary.'

Cathcart allegedly admitted to taking off the clothing he used in the murder and throwing it over the fence, then going back inside through the garage.

He then smeared the inside of the garage door with blood and planted the knife in the hallway, police alleged he told them. 

Cathcart was charged with murder and held without bail after a hearing on Wednesday. He will face court again on Thursday afternoon for a bond hearing.

'He has been caught and will face justice!' Jodi's cousin Spivey celebrated.