Developer Harry Macklowe and his wife, Linda, were ordered to split their “internationally renowned collection” of modern art from the likes of Andy Warhol and Alberto Giacometti in a property division case involving hundreds of millions of dollars.
Who Needs Nine Marilyn Monroes?
A New York court in Manhattan ruled that the Macklowe art trove amassed during 59 years of marriage should be sold and the profits shared.
In a sign of the acrimony that fueled a prolonged legal dispute, the couple couldn’t agree on what the collection was worth — Harry’s expert said $788 million, while Linda’s said $625 million.
Their collection, which encompasses some 165 pieces of art, among them Andy Warhol’s Nine Marilyns which is estimated to be worth $50 million, Le Nez by Alberto Giacometti, worth up to $35 million, Jeff Koons Vest with Aqualung for $10-11 million, and Jackson Pollock, Number 17, valued at up to $35 million..
Florida Property Division
I’ve written about property division in Florida. Property division, or equitable distribution as it is called in Florida, is governed by statute and case law.
Generally, courts set apart to each spouse their nonmarital assets and debts, and then distribute the marital assets and debts between the parties.
In dividing the marital assets and debts though, the court must begin with the premise that the distribution should be equal.
However, if there is a justification for an unequal distribution, the court can give less than equal. When a court orders an unequal distribution, it must base the decision on certain factors, including some of the following:
- The contribution to the marriage by each spouse.
- The economic circumstances of the parties.
- The duration of the marriage.
- Any interruption of personal careers or educational opportunities.
- The contribution to the personal career or educational opportunity of the other spouse.
- The desirability of retaining any asset.
- intentional dissipation, waste, depletion, or destruction of marital assets.
- Any other factors necessary to do equity and justice between the parties.
The courts don’t even have to wait for the end of the case to start a property division. Florida law allows courts, if they find good cause that there should be an interim partial distribution during a divorce action, to equitably distribute property sooner.
The Nose Knows
After a 14-week trial last year, the divorce judge determined in a 65-page opinion how to split all the assets held by the 81-year-old developer and his wife, who is on the board of the Metropolitan Museum of Art.
Linda will get to keep $40 million in art but will have to pay half of that to Harry, she’ll get to keep their 14,000-square-foot apartment at the Plaza Hotel valued at $72 million but have to pay her estranged spouse $36 million for his share. Harry will retain ownership of $82 million in commercial real estate — including 737 Park Ave. — but pay Linda $41 million.
The couple will split the $62 million they have in cash, the judge said.
Linda Macklowe gets to keep another $40 million of art — including works by Koons and Picasso, but must pay Harry $20 million in credit, the judge said.
The couple were married Jan. 4, 1959, when he was a 21-year-old ad salesman for Parents Magazine and she was 20, working as a receptionist. They had no prenuptial agreement.
The Bloomberg article is here.