Tag: art in divorce

Equitable Distribution of Google Stock

Posted by Ron Kauffman on

Scott Hassan, known by some as the third Google founder, is finally headed to his divorce trial after nearly seven years battling over the equitable distribution of Google stock, real estate, and other technology stock – estimated to be worth billions of dollars.

Equitable Distribution Google

“I’m Feeling Lucky”

As the divorces of Bill Gates and Jeff Bezos show, technology billionaires are trying to divorce quietly, behind closed doors. For example, when Google co-founder, Sergey Brin divorced his ex-wife, he hired a private judge to hash out the details.

A quick Google search shows that Hassan and Huynh’s divorce is anything but quiet. Huynh accuses her husband of engaging in “divorce terrorism,” such as creating a negative website called AllisonHuynh.com.

The site contains documents posted of sexual allegations related to Huynh’s wrongful termination suit against her former employer. They claim that Huynh threatened to “kill [her former employer] and then herself” if he ever left her and “kept track of when [her former employer] was out with a new girlfriend,” according to the cross complaint filed by [her former employer] and his attorney in response to Huynh’s suit.

After being accused of creating it, Hassan admitted to launching the site, seeding it with links to articles written about his ex — and links to court documents from three embarrassing lawsuits that involve her.

When confronted, he purportedly admitted to The Post:

“I did, but I have taken it down. It came together in a moment of frustration, when I felt Allison and her attorney were telling one-sided stories to the press. I thought aggregating publicly available information without commenting or editorializing would help … It only ended up making our dispute more public and tense, which was never what I intended.”

According to sources, in 2018, their estate was valued at $1.8 billion and he wants to give her a minuscule fraction.

Florida Equitable Distribution

I have written about equitable distribution in Florida before. In a proceeding for dissolution of marriage, in addition to all other remedies available to a court to do equity between the parties, a court must set apart to each spouse that spouse’s non-marital assets and liabilities.

However, when distributing the marital assets between spouses, a family court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors.

In Florida, nonmarital assets include things such as assets acquired separately by either party by will or by devise, income from nonmarital assets, and assets excluded as marital in a valid written agreement.

Importantly for this hi-tech divorce, non-marital assets would include assets acquired and liabilities incurred by either party before the marriage, and assets acquired and liabilities incurred in exchange for such assets and liabilities.

“I’m Feeling Wonderful”

Mr. Hassan was a research assistant at Stanford’s computer science department when he met Larry Page, then a Ph.D. candidate. When Larry and Sergey Brin founded Google in 1998, Hassan bought 160,000 shares for $800. In 2004, the shares were worth more than $200 million. The shares, now in Google’s parent company, Alphabet, would be valued at more than $13 billion today.

In 2001 they married in Las Vegas and there was no prenuptial agreement, and they barely discussed finances. Ms. Huynh says she supported the family financially in the early years but her husband denies that.

In 2006, during the marriage, the husband formed a limited liability company called Greenheart Investments. Greenheart was valued at more than $1 billion in 2015.

Huynh wants Greenheart to be considered community property because Hassan repeatedly muddied the line between his separate assets and their community property. But Hassan argues that the company should be considered his separate property because it was started with his pre-marital assets.

Hassan acknowledged during court proceedings that he had set up Greenheart as his own company to keep certain assets ‘completely separate’ from Allison.” She insists it is community property — which partners must, typically, divide equally under California law.

Hassan maintains “that the disputed assets are properly characterized as my separate property — this does not necessarily mean that the community, or Allison, will not be compensated,” Hassan said. “I already agreed to provide her with a significant amount of money every month.”

But Huynh purportedly told The New York Post:

“His miserly position is ludicrous. I pray that a Big Tech billionaire will not get away with his attempt to cheat his children and me while he walks away with everything.”

The New York Times article is here.

 

Cardi B, Divorce, and Infidelity

Posted by Ron Kauffman on

Singer Cardi B has filed for divorce from rapper husband Offset because of his alleged infidelity. The divorce petition was filed in Georgia, and there is an initial hearing scheduled for November. Many have asked whether infidelity is grounds for a divorce.

Cardi B Divorce

No Longer Migos

Belcalis Marlenis Almánzar, known professionally as Cardi B, became an Internet celebrity and her debut album was number one on the Billboard 200, broke several streaming records, was certified triple platinum and named by Billboard the top female rap album of the 2010s.

Kiari Kendrell Cephus, known professionally as Offset, is a member of the hip hop and trap music trio, Migos. The couple married in 2017 in a secret ceremony.

Our relationship was so new breaking up and making up and we had a lot of growing up to do but we was so in love we didn’t want to lose each other, was one morning in September we woke up and decided to get married … No dress no make up and no ring.

Their daughter, Kulture, was born in July 2018 – Cardi B’s first child and Offset’s fourth. Cardi B is reportedly seeking primary custody, and child support from Offset.

Florida Divorce and Infidelity

I’ve written about the impact of infidelity and divorce before. In practical terms, adultery as a crime poses very little threat of prosecution, but it could have other consequences.

“Cheating on your spouse can even be grounds for losing your job. This is particularly true in the military, where adultery has a maximum punishment of a dishonorable discharge.”

Chapter 61 discusses the “the moral fitness of the parents” as one of the factors the court considers in determining the best interests of a child. Adultery may impact the division of property. Proof that one spouse intentionally wasted marital assets could be seen as dissipation of assets. Adultery of either spouse could be a factor in determining the amount of alimony, if any, to be awarded.

There are times when evidence of adultery comes into evidence. Most often it doesn’t. In 2003, the U.S. Supreme Court ruled in Lawrence v. Texas that sexual activity between consenting adults is legal.

Bad and Boujee

Their relationship has had high-profile ructions. Following rumors of Offset’s infidelity in 2017, Cardi B said:

“No, it’s not right … But what you want me to do? Start all over again and get cheated on again? This shit happens to everyone.”

The couple stayed together but briefly split in December 2018, with Cardi B saying: “Things just haven’t been working out between us for a long time … we just grew out of love.”

Offset publicly pleaded for a resolution, saying:

“I was partaking in activity that I shouldn’t have been partaking in, and I apologize. For breaking your heart, for breaking our promise, for breaking God’s promise and being a selfish, messed up husband.”

They reconciled in January 2019. But could he “walk it like I talk it?” Their divorce ends one of the highest-profile celebrity relationships in the US. Cardi B is among the world’s most successful and respected rappers – after breaking through in 2017 with US No 1 hit Bodak Yellow she has had three other No 1 singles, more than any other female rapper.

They collaborated with Cardi B on the 2017 single MotorSport. Offset has also released a successful solo album, Father of 4, featuring a hit track, Clout, with Cardi B. He has also guested on US Top 10 hits with Kodak Black and Tyga.

The Guardian article is here.

Photo by Frank Schwichtenberg – Own work.

Child Custody and Timesharing Problems, and Good News on Coronavirus

Posted by Ron Kauffman on

The need to quarantine has not stopped child custody and timesharing problems from surfacing. In fact, it aggravates these problems as parents grapple with sharing custody and protecting themselves and their children. The Supreme Court of Texas recently resolved one issue, and there is even more good news about the coronavirus.

Child Custody Problems

Solving Child Custody Problems is Big in Texas

The coronavirus outbreak has caused urgent disputes among divorced and separated parents over exchanging the children during school closures. This forces attorneys to file emergency motions.

Many parents following their agreements about exchanging their children during and after spring break discovered a problem: this year school never re-started after spring break, so when do you return the children?

I have been working remotely during the coronavirus crisis, and resolving these problems daily. I have also been fielding a lot of calls from clients and potential clients asking about whether they were going to get their children back from the other parent, and whether they should exchange the children as agreed and ordered.

Many states handle things differently. Recently, the Texas Supreme Court weighed in. The Texas Supreme Court settled the issue of when to exchange when there is no start to school after spring break in an emergency order of the pandemic, ruling:

“For purposes of determining a person’s right to possession of and access to a child under a court-ordered possession schedule, the original published school schedule shall control in all instances. Possession and access shall not be affected by the school’s closure that arises from an epidemic or pandemic, including what is commonly referred to as the COVID19 pandemic.”

Justice Debra Lehrmann said the court agreed on the solution during a teleconference to relieve a source of stress during the outbreak.

Florida Child Custody Problems

I’ve been involved in resolving and have written about child custody problems in Florida before. Here are a few tips for parents to lower or prevent your divorce or separation from ruining your holidays or draining your bank account:

Look at the timesharing schedule in your agreement or final judgment. Become familiar with exchanging children on specific holidays, dates and the times the kids are supposed to be with you, or the other parent.

Make your plans in advance and send a nicely worded confirmation email of the exchange schedule to the other parent to avoid disagreements early on.

Be flexible. Fighting during a time of great stress will only make matters worse, while fostering relationships with extended family is considered in the children’s best interest.

A little pre-planning and communication can save you a lot of emotional and financial expense. This is a national emergency and our children are exposed to the stress from those around them. Don’t make things worse. With that said, there is also . . .

Good News on Coronavirus

There is always good news, even during a pandemic.

  • The IRS has announced that the April 15, 2020 deadline for filing and payment of your individual income taxes has been extended to July 15, 2020.
  • Strangely, your second quarter estimated income tax payments are still due on June 15, 2020.
  • The Coronavirus Aid, Relief and Economic Security Act (CARES Act) passed. The last Senate version of the bill I read had a small business loan program allowing maximum loan amounts calculated as the lesser of the product of average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the 1 year period before the date on which the loan is made, or $10,000,000.
  • SCIENCE Magazine released an article it published on May 30, 1919 after the Spanish Flu pandemic about lessons learned. Very interesting reading throughout.
  • A potential universal flu vaccine has passed an important set of clinical trials.
  • A patient has been declared ‘cured’ of HIV – and it’s not even the first time, with no trace of infection in his blood 30 months after undergoing a specialized type of stem cell therapy.

The Supreme Court of Texas order is here.

 

Happy Valentine’s Day: See You in Court

Posted by Ron Kauffman on

Valentine’s Day is known for spending big money on flowers and gifts for wives and girlfriends. But as the Wall Street Journal reports, some people are spending big money to sue their Ex – and not just for divorce.

valentines-day

My Achy Breaky Heart

If someone stole your love away from you this Valentine’s Day, can you sue over it? In a few states, you still can.

These “homewrecker” or “heart balm” laws started in scandal. Unscrupulous women used to try to blackmail wealthy men out of large sums of money, helped along by a law allowing people to sue their Ex after a broken engagement. These ladies were “gold-diggers,” “schemers” and “adventuresses,” and what they were doing was nothing short of a racket.

Today, claims like alienation of affections are cases of wrongful acts which deprive a married person of the affections of his or her spouse — love, society, companionship and comfort of the other spouse.

Alienation of affection lawsuits these days arise when an outsider interferes with a marriage. Defendants in these cases are often an adulterous spouse’s lover, but family members, counselors, therapists, and religious members who have encouraged a spouse to get a divorce have also been sued for these matters.

To win an alienation of affection case, you have to prove (1) that the spouses were happily married and a genuine love and affection existed between them; (2) the love and affection was alienated and destroyed; and (3) the defendant caused the destruction of that marital love and affection.

Florida Heart Balm Laws

I’ve written about heart balm statutes before, especially as they relate to engagement rings.

These common law torts are commonly referred to as “heart balm” statutes, because they permitted the former lovers’ heartaches to heal without recourse to the courts.

The purpose of the heart balm statutes was originally to prevent the perpetration of fraud by litigants who would use the threat of a breach of promise of marriage to force defendants to make lucrative settlements in order to avoid embarrassing publicity.

The Florida heart balm statute, originally passed in 1941, abolishes common law actions for alienation of affections, criminal conversation, seduction, and breach of contract to marry.

The Florida Legislature found that those who break engagements may be “free of any wrongdoing … [and may be] merely the victims of circumstances.”

The preamble declares it to be Florida public policy that the best interests of the people of the state are served by the abolition of the breach of promise action. Now, the rights of action existing to recover money for the alienation of affections, criminal conversation, seduction or breach of contract to marry are abolished.

Someone that I Used to Know

Nowadays, the right to sue for money as damage for the alienation of affections, criminal conversation, seduction, or breach of contract to marry are abolished in Florida.

But this common law tort is still a viable law in a few states in the United States which still allow alienation of affection lawsuits. These states include Hawaii, Illinois, Mississippi, New Mexico, North Carolina, South Dakota, and Utah.

Does that mean all similar lawsuits are over here? Even though Florida’s heart balm causes of action are abolished, that does not mean you can’t sue for replevin of the engagement ring you bought.

That’s because the giving of an engagement ring is a conditional gift in Florida that is dependent “on a voyage on the sea of matrimony.” If the voyage never gets underway, then the gift is never perfected, and the jilted suitor may seek its return by the traditional legal remedy of replevin. Replevin is still a legal remedy.

The Wall Street Journal article is here.

 

The Art of Divorce

Posted by Ron Kauffman on

Dividing assets in a divorce is not only a requirement, it can be a difficult aspect of a divorce. If so, valuing an art collection is singularly one of the most disputed parts of a divorce. Not only is valuation a problem, but people are emotionally attached to their artwork as one billionaire couple in New York has found out.

art of divorce

Billionaire’s Row

The ex-husband is Harry Macklowe, a real estate developer. The ex-wife is Linda Macklowe, an honorary trustee of the Metropolitan Museum of Art, who is passionate about collecting modern art.

Together they have accumulated a $72 million apartment, so large it runs the full length of one side of the Plaza Hotel, with windows overlooking Central Park. A second Manhattan apartment is high up in one of the tallest buildings in the Western Hemisphere, along the so-called Billionaires’ Row.

Their $19 million house in the Hamptons on Long Island has neighbors with boldface names, including Martha Stewart and Steven Spielberg. The $23.5 million yacht is a 150-foot-long prizewinner.

And then there is the art collection, an enormous trove of masterpieces that the judge presiding over the divorce described as “extraordinary” and “internationally renowned” and that has become the latest chapter in the exes’ rancorous unraveling. Among the more than 150 pieces are multiple works by Pablo Picasso, Jeff Koons, Willem de Kooning and Mark Rothko.

The exes’ lawyers have fought about what most of them were worth — one rare moment of agreement came when two art experts hired separately by the exes both valued an Andy Warhol creation filled with images of Marilyn Monroe at $50 million — and who should get them.

Florida Property Division

I have written about property division before. Florida is an equitable distribution state when it comes to dividing art in divorce. In a proceeding for dissolution of marriage, in addition to all other remedies available to a court to do equity between the parties, a court must set apart to each spouse that spouse’s nonmarital assets and liabilities.

In distributing the marital assets and liabilities between the parties, the court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution.

Whenever an agreement cannot be made between the spouses, the court’s distribution of marital assets or marital liabilities must be supported by factual findings and be based on competent evidence. Whether the court distributes artwork equally or not, the court must make specific written findings of fact as to each marital asset and the individual valuation of significant assets, and designation of which spouse shall be entitled to each asset.

Because an effective valuation is important, most attorneys will hire an expert appraiser to provide the appropriate report and testimony to the court.

It’s Up to You New York, New York

The Macklowes’ divorce comes with the twist of an impressive art collection that has been valued at as much as nearly $1 billion. In 2016, Mr. Macklowe told Ms. Macklowe that the marriage was over. By the end of last year, the Macklowes’ divorce had been granted. Mr. Macklowe then put giant images of himself and Patricia Landeau, his new wife, on the side of a luxury condominium building in Manhattan that he built.

But the wrangling continued over how to divide an art collection that David N. Redden, a former vice chairman of Sotheby’s, called “fairly staggering” and “one of the great prizes.” In the Macklowes’ divorce, the former spouses had to unload the art “to sustain their lifestyle. They don’t have the cash.” About 60 to 75 percent of their assets were tied up in the art collection.

As for the value of the art, during the lower-court proceeding, each side hired an expert to appraise the art. Mr. Macklowe’s expert estimated the value at $788 million; Ms. Macklowe’s expert said $625 million.

“If this had been a case with one or two fewer zeros, it would be an ordinary kind of dispute. Because of the prominence of the parties and the amount of money involved, this is a case that attracts natural attention.”

Ms. Macklowe did not want to let anything go. “She stated that she wished to enjoy the collection and sell individual pieces only as necessary to support her standard of living.” That would have posed tax problems for Mr. Macklowe. The wife wanted all the major pieces of art to go to her, and she would decide what to sell and when to sell it. The husband would have to pay taxes on what would be sold, because the value that would be attributed to the works would be the after-tax value. She would keep the art, the art would get sold and he would pay the taxes.

The New York Times article is here.