There are many reasons couples stay together long after a marriage has fallen apart. Sometimes married couples stay together because of the children or their religious convictions, other times couples choose to stay together because of money. While financial matters are always an important issue in a divorce, when a married couple operates a family-owned business, the consequences of a divorce can seem particularly perilous.
Minnesota readers may be familiar with the relatively recent divorce case of Frank and Jamie McCourt. The McCourt's once owned a "small" family-owned business known as the Lost Angeles Dodgers. In January 2012, the McCourt's settled their divorce with Jamie McCourt receiving a modest $181 million settlement. The amount was based on Frank's business assets and financial holdings being valued at $300 million.
Despite the initial valuation of the baseball team, Frank sold the Los Angeles Dodgers two months after the divorce settlement agreement was finalized for more than $2 billion. Jamie McCourt immediately claimed fraud. Frank, however, argues that he had no knowledge that the team was worth $2 billion at the time of the divorce. Each party is set to bring the fight to court. Clearly, both Frank and Jamie have a lot to lose.
The divorce case of Frank and Jamie McCourt makes clear how vital it is that the parties get an accurate valuation of property before a settlement is reached. To accomplish this attorneys conduct a thorough discovery process that allows them to obtain the necessary documents to value property based on accurate facts. If fraud is an issue, it is possible to return to court to have the old agreement thrown out.
Source: Philly Burbs, "Dividing Up the Business in a Divorce," Loretta Hutchinson, June 7, 2013
