Tag: divorce news

A Fast and Furious Divorce Property Division

Jordana Brewster’s divorce got expensive. The Fast and Furious star’s property division comes at a steep price as she has to buy out her ex-husband from their Los Angeles former marital home.

Fast & Furious 5,000,000

According to news reports, Brewster, 41, agreed to pay her ex-husband, Andrew Form, $5 million as part of their divorce settlement, The figure represents his half of their marital home in Los Angeles, which she will keep.

Additional details of the divorce settlement include that any income Brewster makes from the latest “Fast and Furious” movie is her separate, non-community property.

Her producer ex-husband also agreed that any income either earns “as a result of their personal and professional effort” from May 13, 2020 and beyond “shall be the separate property of the earning party.”

Neither Brewster nor Form will receive or pay spousal support. While a judge still needs to sign off on their agreement, Brewster and Form are legally single and co-parenting their two sons.

Florida Divorce and Property Division

I’ve written about houses and property divisions before. California is a community property state, but Florida is an equitable distribution state. In Florida, every divorce requires the court has to set apart nonmarital property, and distribute the marital property.

Florida judges always begin with the premise that the property distribution should be equal, unless there is a reason for an unequal distribution based on several factors.

One of the factors the court has to consider is the desirability of keeping the home for the kids or a spouse, if it’s equitable to do so, if it’s in the best interest of the child, and financially feasible.

Some spouses decide to sell but schedule the sale months or years into the future. This happens when a couple has kids, and both parents agree that the house shouldn’t be sold to preserve the school district or allow for easier timesharing.

There are other problems in a keeping a house in which your name is still on title. In the even that your ex-spouse does not pay the mortgage timely, your own credit will suffer the late notices.

And, if someone invited to your old home is hurt, that person will sue the record title owners for their damages. If your name is on title as an owner, that’s you! Making sure you have decent insurance on the house may be in order.

Many communities are experiencing a red hot real estate market. If you can’t wait for years, and need to sell immediately, there’s a silver lining in addition to this being a seller’s market. A fresh start and new beginning after a complete division of all of the assets tying you together with your Ex is the best way to go forward for some people.

However, there’s a cost of sale. When you sell your house, you pay a commission, and other expenses, like taxes, title expenses, repairs which can average about 10 percent of the sale price.

The California Marriage Massacre

Brewster and Form met while working on “The Texas Chainsaw Massacre: The Beginning.” Form was a producer on the film.

“We started dating in secret — you know, hanging out in my trailer — because it would have been unprofessional otherwise,” she previously told InStyle Weddings (via People). “But every day, Andrew wore these work boots to the set, and if I was lying down in the shot or there was equipment in the way, I’d look for his shoes. It was comfortable just to know he was nearby.”

They called it quits after 13 years of marriage in June 2020, and the actress filed for divorce the following month. In a deeply personal essay she wrote for Glamour, Jordana says she was compelled to divorce Andrew due to their vastly different schedules.

‘Most of why my marriage didn’t work was not my ex-husband’s fault,’ she said. ‘He loves work. He loves being on set, on location. I knew this from ages 27 to 32, but it became a problem for me once the kids were older. I wanted a partner.’

‘So, toward the beginning of the pandemic, Andrew and I decided to separate. The combination of being apart for most of the year for many years and growing apart emotionally took its toll.’

Just days after their separation, Jordana would reconnect with her current boyfriend Mason Morfit, whom she first met a few years earlier when they were both still married to other people.

‘Four days after I separated from Andrew, I was on a plane to San Francisco to visit this man I had met only once but who had stayed on my mind. I knew he’d been separated for two years. I wanted to see him, to confirm whether the image I’d built up in my mind matched reality. What I got was far more than I expected.’

During a time when the world avoided all contact, when it was mandated that everyone stay six feet apart, Mason and I blended into each other.’

The couple shared a five-minute long embrace and a kiss when they reunited at the airport. As far as Andrew, the movie producer has since moved on with actress Alexandra Daddario, who debuted their romance in May 2021 with a kissing snap.

‘I love you . . . and even that is an understatement,’ she captioned the photo.

The Fox News article is here.

Divorce Politics and Privacy

Connecticut State Senator Alex Kasser’s resignation is a very public reminder about the intersection of divorce, politics and privacy. The hard won seat for Democrats is now up for grabs by state Republicans in Greenwich.

Divorce Privacy Politics

Heartless in Hartford

Last week Connecticut state senator Kasser announced she is resigning, saying her ability to do her job has been harmed by a bitter divorce battle being waged by her husband, Seth Bergstein, a top Morgan Stanley executive. In her resignation statement posted on Medium, the Democrat from Greenwich wrote:

“Seth uses his powerful position at Morgan Stanley to enable his conduct, so I must work even harder to fight for my freedom.”

The stunning move comes two years after Kasser went public with her romantic relationship with a woman who had previously run her first Senate campaign and then briefly worked in her legislative office.

Kasser told her husband more than a decade ago told she is a lesbian, according to an op-ed she wrote in The Stamford Advocate newspaper last fall. Kasser, 54, charged on Tuesday that Bergstein “has tried to destroy” that same-sex partner, Nichola Samponaro, “with lies about our relationship and harassing court motions that mention her 56 times for no relevant reason — she had nothing to do with ending my marriage. I will not stay silent as a homophobic, entitled man attacks my partner.”

Bergstein, 55, is a senior managing director and head of global services at Morgan Stanley.

Florida Divorce Privacy

I’ve written on divorce privacy issues before. Divorce privacy is an issue that comes up a lot. Divorces in court are public events, and the filed records of court proceedings are public records available for public examination.

Both the public and the media can challenge any closure order by a divorce court. The closure of court proceedings or records should only really occur when it’s necessary to comply with established public policy, to protect trade secrets; or to protect children in a divorce among other reasons.

Florida also has new rules protecting sensitive data from public view. This includes protecting Social Security, Bank Account, Debit, and Credit Card Numbers because if those numbers are included in a document, they may become part of the public record.

If information is absolutely required, there is a rule with procedures for sealing and unsealing of court records. Also, the Clerk of Court has the authority to redact or make confidential only specific information.

If sensitive information has already been filed in Court Records, you must complete and submit a “Notice of Confidential Information Within Court Filing” in order to remove or seal it.

Divorce Power Politics

It is difficult to know where the balance of power in a relationship is when a powerful state senator admits to CNBC she no longer has contact with her three children with Bergstein.

Kasser made a splash in 2018 when she became the first Democrat in nearly 90 years to win the 36th District Senate seat, which includes Greenwich and parts of Stamford and New Canaan. Her narrow victory helped Democrats end two years of splitting control of the state Senate with Republicans. Last November, she doubled her margin of victory to 2.6% to win reelection to another two-year term. Kasser said a special election would determine her successor.

“I can no longer live or work in Greenwich as it is loaded with memories of the 20 years I spent raising my children here. It is too painful to be in Greenwich now that I’ve been erased from their lives, just as their father promised would happen if I ever left him.”

The senator’s surprise announcement also comes as she prepares for her divorce trial, set to begin in September in Stamford Superior Court, where her lawyers have sought to depose three Morgan Stanley employees over what they have suggested were improper efforts by the investment bank to obtain personal financial information from her.

“It is with deep sadness that I announce my resignation as State Senator. Serving the residents of Connecticut’s 36th Senate district has been a profound honor and a great joy. However, due to personal circumstances, I cannot continue. For nearly three years, I’ve been trying to divorce Seth Bergstein. As all survivors of domestic abuse know, emancipating ourselves is an epic struggle that takes years, requires unflinching courage and all our resources — mental, physical, and financial.”

Bergstein did not immediately return a request for comment. But his matrimonial lawyer, Janet Battey, in an email response to CNBC said, “Ms. Kasser’s outrageous allegations and narrative couldn’t be further from the truth.”

“Ms. Kasser sadly continues to wage a public battle in the press while simultaneously dragging out the court proceedings,” Battey said. “Throughout the marriage, Ms. Kasser described Seth as a devoted father and patient and loving husband. Seth and his three children sought to keep this matter private, but Ms. Kasser continues to make blatantly false public statements in furtherance of her own agenda.”

“Mr. Bergstein trusts the legal system and family court and that the upcoming trial will reveal Ms. Kasser’s narrative for what it is.”

The CNBC article is here.

 

Bill Gates’s Divorce and Cheating

Bill Gates’s divorce and cheating is news again as more reports about him are emerging. Former employees are claiming they put up with inappropriate workplace behavior, romantic relationships with subordinates, and the demands of a boss who was painted as a nerdy tech savior.

Divorce Cheating

Blue Screen of Death

There was a time before his charitable works when Bill Gates was seen as the embodiment of corporate evil – and not just because of the blue screen of death when Windows 95 crashed. Simply typing “Bill Gates” into Ask Jeeves or Netscape on your Macintosh or Gateway 2000 desktop computer returned results like “antichrist”.

People cheered during the Microsoft antitrust case after Bill Gates himself was cross examined by attorney David Boies. But since then, Gates has embarked on a 20-year public relations effort to frame himself as a good-guy geek deeply excited by new technologies and leading the effort to fix the ills of the world.

He’s given away billions to fight malaria, climate change, world hunger. He led the effort to warn of a potential global pandemic and then, when his vision became reality and COVID-19 obliterated the global economy and killed millions, there he was at the forefront of vaccine research efforts.

In the wake of his divorce, however, it has become increasingly clear that there is a duality to Bill Gates. The stories about him have been largely suppressed by nondisclosure agreements to keep more damning details under wraps, a former employee said. “For such a long time you were told, ‘You have an NDA. You can’t talk,’” said the former employee, who signed such an agreement.

The current wave of reporting around Gates’s behavior encouraged this person to open up, but they are keenly aware that Gates has lawyers at the ready. “And these are not nice lawyers,” they added.

Florida Divorce and Cheating

I have written about divorce and cheating before. Adultery can be the cause of a divorce, but can it impact the outcome? There is still a statutory basis for infidelity to be an issue in your divorce proceedings, but not in the way most people think.

Adultery may impact the division of property. Florida is an equitable distribution state, and it is presumed that property should be evenly divided. This presumption may be overcome by proof that one spouse intentionally wasted marital assets.

This waste is sometimes known as dissipation. Paying for expensive jewelry, foreign trips, rent, car payments, and dinners for girlfriends and boyfriends is considered wasting marital assets. The court has the power to reduce an adulterer’s equitable distribution to credit the marital estate for waste.

Florida law specifically provides that a court may consider the adultery of either spouse in determining the amount of alimony, if any, to be awarded. However, courts have struggled to reconcile the “fault” of adultery with the concept of “no fault” divorce. The result is a mix of weak opinions.

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.

So, if one parent can prove that the other parent’s adultery had, or is reasonably likely to have, an adverse impact on the child, the judge can consider adultery in evaluating what’s in the best interest of the child. However, it would be extremely unusual for an issue to be decided on those grounds.

C:\>Defrag

Vanity Fair also reports that, like most tech company leaders, Gates was reported to be often impatient and demanding—behavior that was commonplace given the rapid speed of the industry. A former partner who worked directly with Gates at Microsoft explained that if a deadline was missed, the party responsible would answer directly to Gates.

The former employee who signed an NDA called him “unrelenting” and “condescending,” adding, “He would ask you a question, and when you answered, he’d look at you and go, ‘That is NOT the right answer.’”

For years there have been whispers about inappropriate extramarital relationships. None of it was entirely shocking, despite the seeming contrast with his public persona. Bill and Melinda’s relationship began as an office romance, with Bill as the boss and Melinda as the younger employee.

For the people who worked for him, Bill’s behavior was something of an open secret. The former employee who signed an NDA said there were times when Bill came into the office driving a Mercedes, and an hour later, one of his security personnel showed up with a golden brown Porsche that Bill drove away in.

 “We all assumed that it was when he was with women. I knew there were many offsite meetings that were not on his calendar.”

Yet another source close to Bill disputed that he would disappear from the office, saying he was “one of the most intensely scheduled people on the planet.”

It’s not clear how much Melinda knew about her husband’s behavior or these rumors, or how much they factored into her decision to file for divorce. People close to the couple said there had been tension for some time, that they had been living separate lives for years, and that the decision to separate had been delayed until their youngest daughter graduated from high school.

The Times reported that in 2018, Melinda was unhappy with how Bill dealt with a sexual harassment claim against his longtime money manager, insisting on bringing in outside investigators. And then in 2019, when the relationship between her husband and Jeffrey Epstein became public knowledge, she hired divorce lawyers, setting a plan into motion.

The Vanity Fair article is here.

 

Mr. and Mrs. Smith and Child Testimony

The tumultuous marriage and ugly divorce of Mr. and Mrs. Smith, aka Angelina Jolie and Brad Pitt, has taken a turn for the worse, if that’s possible. Angelina is requesting to have their children testify against their father which raises the issue in family law cases of when children can be used as witnesses.

Child Testimony

Once Upon a Time in Hollywood

Jolie, who has sought to disqualify Judge John Ouderkirk from the divorce case, said in the filing Monday that he declined to hear evidence she says is relevant to the children’s safety and well-being before issuing a tentative ruling. The documents don’t elaborate on what that evidence may be.

“Judge Ouderkirk denied Ms. Jolie a fair trial, improperly excluding her evidence relevant to the children’s health, safety, and welfare, evidence critical to making her case,” according to the filing in California’s Second District Court of Appeal.

The actress also said the judge “has failed to adequately consider” a section of the California courts code, which says it is detrimental to the best interest of the child if custody is awarded to a person with a history of domestic violence. Her filing did not give details about what it was referring to, but her lawyers submitted a document under seal in March that purportedly offers additional information.

Jolie sought a divorce in 2016, days after a disagreement broke out on private flight ferrying the actors and their children from France to Los Angeles. Pitt was accused of being abusive toward his then-15-year-old son during the flight, but investigations by child welfare officials and the FBI were closed with no charges being filed against the actor. Jolie’s attorney said at the time that she sought a divorce “for the health of the family.”

Her new filing says the judge has “refused to hear the minor teenagers’ input as to their experiences, needs, or wishes as to their custody fate,” citing a California code that says a child 14 or over should be allowed to testify if they want to.

Three of Jolie and Pitt’s six children are teenagers, a 17-year-old, 16-year-old, and 14-year-old. The oldest is 19 and not subject to the custody decision. They also have 12-year-old twins.

Florida Child Testimony

The issue of putting your child on the stand to testify in a divorce or family law proceeding comes up a lot. I’ve written and spoken publicly about family law issues such as expert testimony and evidence before.

Florida courts take child testimony extremely seriously. The goal, in the minds of judges, is to prevent children from being too involved with or exposed to the stress of a divorce or custody proceeding to the extent possible.

In Florida, unless otherwise provided by law or another rule of procedure, children who are witnesses, potential witnesses, or related to a family law case, are prohibited from being deposed or brought to a deposition, from being subpoenaed to appear at any family law proceeding, or from attending any family law proceedings without prior order of the court based on good cause shown.

Accordingly, before being required to testify in court, a Florida judge must determine that a child’s testimony is both relevant and necessary to resolve the issues before the court.

Fight Club

In response to Jolie’s request to have their children testify, Pitt’s attorneys said, “Ouderkirk has conducted an extensive proceeding over the past six months in a thorough, fair manner and reached a tentative ruling and order after hearing from experts and percipient witnesses.”

Pitt’s filing said the judge found Jolie’s testimony “lacked credibility in many important areas, and the existing custody order between the parties must be modified, per Mr. Pitt’s request, in the best interests of the children.”

It says Jolie’s objections and further delays in reaching an arrangement would “work grave harm upon the children, who will be further denied permanence and stability.”

It’s not clear what the current custody arrangement is because the court seals most files. When the divorce process began, Pitt sought joint custody and Jolie sought primary physical custody — meaning the children would live more than half the time with her. But changes have been made that have not been made public.

Peter Harvey, a lawyer for Jolie who is close to the case but not directly involved, said the actress “supports joint custody” but the situation is complicated and he can’t go into detail because the court proceedings are under seal.

Divorce lawyers for both sides declined to comment on the new filings. Harvey told The Associated Press that Jolie’s family struggles have prompted her to take a more active role in changing the law’s approach to custody issues.

“Ms. Jolie has been working privately for four and a half years to both heal her family and to fight for improvements to the system to ensure that other families do not experience what hers has endured,” said Harvey, a former attorney general of New Jersey who has been working with Jolie on policy issues.

Jolie has sought to disqualify Ouderkirk, a private judge she and Pitt chose to maintain their privacy, arguing that he has an improper business relationship with one of Pitt’s attorneys.

She said in Monday’s filing that if the tentative custody decision is made final by Ouderkirk, she will appeal it. Jolie, 45, and Pitt, 57, were among Hollywood’s most prominent couples for 12 years. They had been married for two years when Jolie filed for divorce.

The couple was declared divorced in April 2019, after their lawyers asked for a judgment that allowed a married couple to be declared single while other issues remained, including finances and child custody.

The AP article is here.

 

 

Biden’s Tax Plan and Divorce

President Joe Biden’s latest tax proposal may require any couple thinking about filing for divorce to do some planning. Biden wants higher taxes on the wealthiest 1% to help fund education, paid leave, childcare and other social programs, and there are other other changes which may impact your divorce.

Divorce taxes

Taxes and Doughnuts

In 2017, President Trump signed the the Tax Cut and Jobs Act (TCJA) into law. The TCJA generally reduced tax rates overall, and reduced the highest individual income tax rate from 39.6% to 37%. Almost all of the individual tax cuts expire at the end of 2025 unless Congress extends them.

However, there is a new president, a new Congress, and there is little doubt president Biden’s proposal will increase your taxes and impact your divorce. For instance, the Biden Plan would revert the top individual income tax rate for taxable incomes above $400,000 to 39.6%.

Even still, the proposal could still affect people earning under $400,000 too. There’s also social security taxes. Right now, a Social Security tax is imposed on wages up to $142,800. Wages above the $142,800 ‘wage cap’ are not subject to Social Security tax.

But Biden is proposing a shrinking doughnut hole for Social Security. Earnings between $142,800 and $400,000 wouldn’t be taxed, but that doughnut hole would shrink each year as the $142,800 wage cap increases.

The Biden Plan also taxes long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6 percent on income above $1 million instead of at the current top capital gain rate of 20%.

Itemized deductions are also impacted under the Biden Plan. His plan caps the tax benefit of itemized deductions to 28 percent of value for those earning more than $400,000, and restores the Pease limitation on itemized deductions. The Pease limitation capped how much you could deduct.  The Pease limitation was repealed under TCJA.

Divorce and Tax

I’ve written about divorce and tax changes before. The impact president Trump’s TCJA changes took on divorce was huge. Most notably, Trump’s tax changes eliminated the alimony deduction. People become less willing to pay as much in alimony because of the loss of the deduction.

That change, it was claimed, disproportionately hurt women who tend to earn less and are more likely to be on the receiving end of alimony payments.

On the other hand, the alimony deduction itself has also been criticized. For example, the government argues the deduction is a burden on the IRS because, if the alimony amounts ex-spouses report paying and receiving don’t match, it can force the agency to audit two people who may already be feuding.

Divorce Taxes and Child Credits

The Biden Plan also includes two significant proposals concerning tax credits related to children. These proposals, if passed, could cause couples to spend more time arguing over who will claim the children to maximize tax benefits.

Under the TCJA, the dependency exemption was eliminated altogether, and was replaced by an expanded Child Tax Credit. If you have kids under the age of 17, you likely qualify for the CTC.  The CTC provides a tax credit of up to $2,000 per child under age 17. The CTC begins to phase out for single taxpayers with an adjusted gross income over $200,000 and married taxpayers over $400,000.

The Biden Plan increases the CTC from a maximum credit of $2,000 to $3,000 for children ages 6 to 17, and $3,600 for children under age The CTC would also be made fully refundable, removing the $2,500 reimbursement threshold and 15 percent phase-in rate.

In the corporate world, the TCJA reduced corporate tax rates from a maximum rate of 35% to a flat 21% tax rate on taxable income. The Biden Plan would increase the corporate income tax rate from 21% to 28%.

At this point, no one knows what part of President Biden’s tax proposals will become law, or what the final law would look like. But any couples considering divorce should keep an eye on these proposals and how they could impact your after-tax income and assets after separation.

The CNBC article is here.

 

Divorce and Will Power

There is a new law in Florida dealing with divorce and the power of your will. The new law tries to correct the situation where you create a will giving your property to your fiancée, then marry, but divorce without changing your will. Many families discovered a will had no power to exclude an ex-spouse due to a loophole. The Florida legislature just addressed the situation.

Divorce and Will

Where There’s a Will There’s a Way?

One of the many consequences of divorce is that it is supposed to be the end of the marriage, and the benefits of being married. But that is not always the case. For example, one of the financial benefits of marriage is inheriting from your deceased spouse. However, an ex-spouse usually can’t inherit from their ex-spouse. Usually.

The problem is that many people who divorce forget to change the terms of their wills, trusts, or other financial instruments, and forget to omit their now Ex-Spouse from inheriting. As a result, the Ex-Spouse can become a beneficiary.

This common omission has led to unexpected windfalls for ex-spouses’ years after divorce, to the detriment of a current spouse, children, parents, and other family members who expected to be heirs of an estate.

A law protected these expected heirs from this oversight. The law protected new spouses and children by creating the legal fiction that, for purposes of inheritance, revocable trusts, and certain beneficiary designations, a past divorce is treated in the distribution as if the surviving former spouse had died on the date of divorce.

But this legal fiction does not apply where the divorce judgment specifically requires that the Ex-spouse remain as a beneficiary of the will, trust, or other financial instrument, or where the beneficiary designation is reaffirmed after divorce.

A Florida case exposed a loophole in this area. Ron Priever executed a will devising property to his then fiancée, Ms. Gordon. Some two years later, Mr. Priever and Ms. Gordon married. They divorced in July 2013. Mr. Priever died two years later. He left no children or spouse.

In April 2015, the guardian asked to treat Mr. Priever’s estate as an intestate estate as if there were no will. Allegedly, Mr. Priever told several of his family members that he destroyed or revoked his will because of a premarital agreement and subsequent divorce from Ms. Gordon.

The guardian asked the court for an order determining beneficiaries. He argued that, under Florida law, the will was to be construed under a legal fiction: as if Ms. Gordon had died before Mr. Priever.

But Ms. Gordon objected. First, she argued that she was very much alive. Second, that Florida law did not apply in her case because she was not married to Mr. Priever when he signed his will – she was only engaged. The trial court disagreed with her and she appealed.

Florida Divorce

The official term for divorce in Florida is “dissolution of marriage”. I’ve written about divorce many times before. There are a lot of issues concerning divorce when a death of a spouse or former spouse occurs.

In divorce, the issue of benefits if you survive your spouse or ex-spouse is a frequent question. For example, eligibility for social security benefits. If you are 62 or older, have a previous marriage that lasted at least 10 years and have not remarried, you may be eligible to collect Social Security benefits based on your former spouse’s earnings record.

If you are considering divorce, or just starting the process, you should review your estate plan to make sure it reflects your divorce plans. That is because it doesn’t matter how far along the divorce case is taking, or how long you are separated, you are legally married until the judge signs the final judgment in.

If you die or become disabled before the final decree of divorce, your estranged spouse may still have legal control over you and your estate and may be entitled to most, if not all, of your estate. This may not be what you intended.

Through proper estate planning documents, you can provide that someone other than your former spouse will have control over you and your estate, and you can limit your estranged spouse’s rights as a beneficiary of your estate.

Willpower

The appellate court found the plain and unambiguous language of Florida law revokes provisions of a will executed by a “married person” and therefore it did not apply in Mr. Priever’s case.

The legislature has finally closed this loophole for divorced people whose will leaves everything behind to their ex-spouses.

The bill amends the Probate Code to provide that a former spouse is considered, for estate purposes, to have died on the date of the divorce. Once the law becomes effective, the date a will was signed will not affect this legal fiction.

The new bill amends the Trust Code to clarify the same result applies to a revocable trust. These changes apply to estates and trusts of decedents who die on or after the effective date of the bill, regardless of when the trust or will was signed.

The effective date of the bill for purposes of the changes to these two sections is upon becoming law.

The Senate Bill is here.

 

Ctrl+Alt+Del: Reasons for the Bill Gates Divorce

Ctrl+Alt+Del is not only how you end a Windows session or unfreeze a stuck screen, it just may be how to end a marriage. The Wall Street Journal is reporting on a possible new reason for the Bill Gates divorce, and the DOS command line is c:\Epstein.

Bill Gates Divorce

Start

We are learning the separation between Bill and Melinda Gates, announced on twitter last week, has actually been in the works for years. Ms. Gates consulted with divorce lawyers roughly two years before she filed for divorce from Mr. Gates, saying their marriage was “irretrievably broken,” according to people familiar with the matter and documents reviewed by The Wall Street Journal.

The 56-year-old philanthropist has been working with lawyers at several firms since at least 2019 to unwind the marriage of more than 25 years, according to these people and the documents. Last Monday, the billionaire couple announced they were ending their marriage. In a joint statement posted on Twitter, they said:

“we no longer believe we can grow together as a couple in this next phase of our lives.”

The couple hasn’t said what prompted the split. One source of concern for Ms. Gates was her husband’s dealings with convicted sex offender Jeffrey Epstein, according to the people and a former employee of their charity, the Bill & Melinda Gates Foundation. Ms. Gates’s concerns about the relationship dated as far back as 2013, the former employee said.

According to the documents reviewed by the Journal, Ms. Gates and her advisers held a number of calls in October 2019 when the New York Times reported that Mr. Gates had met with Mr. Epstein on numerous occasions. Mr. Gates once stayed late into the night at Mr. Epstein’s Manhattan townhouse, the Times reported.

When asked about his relationship with Mr. Epstein in a September 2019 interview with The Wall Street Journal, Mr. Gates said:

“I met him. I didn’t have any business relationship or friendship with him.”

Bridgitt Arnold, a spokeswoman for Mr. Gates, said in 2019 that the software mogul and Mr. Epstein had met multiple times to discuss philanthropy.

Bill Gates regrets ever meeting with Epstein and recognizes it was an error in judgment to do so Ms. Arnold said at the time. Mr. Epstein died in jail in August 2019 awaiting trial on federal charges related to sex trafficking.

Florida Divorce

The official term for divorce in Florida is “dissolution of marriage”, and you don’t need fault as a ground for divorce. Florida abolished fault as a ground for divorce. So, if your spouse is either out logging too much computer time, or late night meetings at Jeffrey Epstein Manhattan apartment, you don’t need to allege those as grounds for divorce.

I’ve written about divorce reasons before. The no-fault concept in Florida means you no longer have to prove a reason for the divorce, like your spouse’s new friends. Instead, you just need to state under oath that your marriage is “irretrievably broken.”

Before the no-fault divorce era, people who wanted to get divorce either had to reach agreement in advance with the other spouse that the marriage was over or throw mud at each other and prove wrongdoing like collaboration or weakening the revolutionary spirit.

No-fault laws were the result of trying to change the way divorces played out in court. No fault laws have reduced the number of feuding couples who felt the need to resort to distorted facts, lies, and the need to focus the trial on who did what to whom.

Florida abolished fault as grounds for filing a divorce. The only ground you need to file for divorce in Florida is to prove your marriage is “irretrievably broken.” Additionally, the mental incapacity of one of the parties, where the party was adjudged incapacitated for the prior three year, is another avenue.

Shut Down or Restart?

The couple negotiated their divorce throughout the Covid-19 pandemic, the documents show. They have three children who are all now 18 years or older, the divorce filing shows. The youngest is a senior in high school.

Ms. Gates, a global advocate for women and girls, had told her husband she was uncomfortable with Mr. Epstein after the couple met him together in 2013, the former employee of the Gates Foundation said. Mr. Gates and some employees of the Gates Foundation continued a relationship with Mr. Epstein despite her concerns, this person said.

A spokeswoman for Mr. Gates, who is 65 years old, said Friday he stands by his 2019 statement to the Journal and declined to comment further. A spokeswoman for Ms. Gates didn’t respond to questions about her reasons for seeking a divorce.

In early 2020, Mr. and Ms. Gates surprised many people when they said they wouldn’t attend the World Economic Forum in Davos, Switzerland, an annual gathering of business and world leaders that the power couple had attended for years. A few months later, on March 13, Mr. Gates said he was resigning from the boards of Microsoft Corp. and Berkshire Hathaway Inc.

The Microsoft co-founder said he planned to focus more on his philanthropic efforts. By that time, the Gateses were already in discussions to divide their vast wealth, according to the people familiar with the matter and the documents. Legal teams from both sides were privately in discussions with a mediator to work out a separation, the documents show.

The May 3 divorce filing says the couple had agreed to a separation contract to divide their assets—a fortune estimated at $130 billion by Forbes. Their assets include a $131 million lakeside compound in Washington state called Xanadu 2.0, a rare Leonardo da Vinci notebook and investments in Microsoft and Four Seasons Hotels.

Last week, Mr. Gates’s investment firm transferred nearly $2.4 billion worth of public company shares to Ms. Gates, including stakes in car-dealership owner AutoNation Inc., a Mexican broadcaster and a Canadian railroad.

The Gateses have said they would give away most of their wealth and donated more than $36 billion to the Gates Foundation over the years. The couple said they planned to remain co-chairs at the foundation and jointly lead it after their divorce. “We continue to share a belief in that mission,” they said in their Twitter statement.

Ms. Gates signed her divorce petition in Washington, near the family home and the foundation’s headquarters, according to the filing. Mr. Gates signed the papers from California.

The Wall Street Journal article is here.

 

Prenuptial Agreements and Waiving Alimony

Actor Robert De Niro is wondering why he signed a prenuptial agreement since it doesn’t seem to be waiving alimony very well. De Niro’s lawyer is claiming the actor is being worked to death to keep up with his estranged wife’s extravagant lifestyle — including her “thirst for Stella McCartney” and $1 million-plus diamond rings.

Prenup Alimony

Aging Bull

According to De Niro’s lawyer during a virtual court divorce hearing:

“Mr. De Niro is 77 years old, and while he loves his craft, he should not be forced to work at this prodigious pace because he has to/ When does he get the opportunity to not take every project that comes along and not work six-day weeks, 12-hour days so he can keep pace with Ms. Hightower’s thirst for Stella McCartney?”

He could get sick tomorrow, and the party’s over,” she said of the famed “Raging Bull” and “The Irishman” star. De Niro phoned into the proceeding, while Hightower appeared by video link.

She also claims De Niro is already a tax delinquent again — with the paychecks from his next two movies to offset his latest multimillion-dollar bill to Uncle Sam, his divorce lawyer claimed.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements and the De Niro divorce before. Prenuptial agreements are not just for celebrity sports figures, and they are about much more than just resolving uncertainty in a marriage.

Any couple who brings any personal or business assets to the union can benefit from one. They are also important to have in place before a couple starts investing in businesses, properties and other investments. But prenups are frequently challenged in court.

Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable. For example, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

And as Robert De Niro is figuring out, even though a prenuptial agreement can waive alimony, temporary support during the divorce proceedings, and child support, may not be waivable in a prenuptial agreement. Florida courts have, recognized that, notwithstanding language in the prenuptial agreement to the contrary, spouses are still entitled to temporary support. In Florida, it is against the public policy to enforce any provisions waiving temporary support.

The War With Grandpa

The recent New York hearing came as the couple squabbles over how much temporary support De Niro should have to pay to Hightower until the divorce is finalized.

Hightower’s lawyer, Kevin McDonough, argued that since filing for divorce in 2018, De Niro has unfairly continued to cut the amount of money he has been sending his estranged spouse, including involving her credit-card expenses, going from $375,000 a month to just $100,000 monthly as recently as January.

But Krauss claimed that in the years leading up to their separation, Hightower was spending more and more. In just 2019, she had spent $1.67 million — including buying a diamond worth $1.2 million from jeweler Kwiat, the lawyer said.

Krauss said De Niro is behind millions of dollars on his taxes and that the money from his next two movie projects will go toward paying off those liabilities. De Niro — who was clobbered with a $6.4 million tax lien in 2015 — has previously said the pandemic decimated his finances.

“If he wants to direct or compel his family to leave their longtime home while he’s spending millions and millions and millions on himself, on his own homes, on renovating what his lawyers tongue-in-cheek call his cottage in Montauk, which he has poured millions and millions into over the past couple of years, he can take that position,” McDonough claimed of the actor.

“There have been no cutbacks and no slowdowns in Mr. De Niro’s lifestyle whatsoever,” McDonough said. Until the prenuptial agreement goes into effect, De Niro is supposed to pay her so she can “maintain the status quo” lifestyle she had when they were married — while also crying foul on Krauss’ claims that De Niro is struggling financially.

The Fox news article is here.

The Rap on Joint Custody

Many are wondering what the rap is on joint custody after Kanye West requested joint legal and physical custody of his four children with Kim Kardashian. According to news reports, neither party is seeking spousal support.

Rap Custody

Famous

According to a legal response filed by the rapper’s attorney West, 43, requests joint legal and physical custody of their children. It should be no surprise that neither party is seeking spousal support.

The 43-year-old rapper’s sneaker and clothing business — now bolstered by Adidas AG and Gap Inc. — is valued between $3.2 billion and $4.7 billion by UBS Group AG, according to Bloomberg. A report published by the outlet on Wednesday, March 17, revealed that West’s total worth has skyrocketed to $6.6 billion. (Forbes previously declared West a billionaire in April 2020.)

Yeezy’s collaboration with Gap is set to hit stores this summer and “could be worth as much as $970 million” of the brand’s value, per Bloomberg. Last year, the Grammy winner signed a 10-year agreement to design and sell apparel under the Yeezy Gap label. West still holds total ownership and creative power within the company.

Along with the income from his Yeezy line, the “Gold Digger” artist has also accrued $122 million in cash and stock. He’s raked in an additional $110 million from his extensive catalog of music and has another $1.7 billion in other assets.

Forbes estimates that Kardashian West is now worth $1 billion, up from $780 million in October, thanks to two lucrative businesses—KKW Beauty and Skims—as well as cash from reality television and endorsement deals, and a number of smaller investments

Florida Shared Parental Responsibility

The question about an award of custody of children frequently comes up, especially now in Florida as the Legislature is considering a massive change to how timesharing is decided in family court.

Although Kanye is seeking “joint physical and legal custody, the term “custody” is no longer recognized in Florida. Florida replaced the “custody” term for the “parenting plan” concept in order to avoid labeling parents as “visiting parent” or “primary parent” in the hopes of making child custody issues less controversial, and encourage parents to co-parent more effectively.

Under Florida’s parenting plan concept, both parents enjoy shared parental responsibility and a time-sharing schedule. “Shared parental responsibility” means both parents retain full parental rights and responsibilities and have to confer with each other so that major decisions affecting their child are made jointly.

A time-sharing schedule, as the name suggests, is simply a timetable that is included in the parenting plan that specifies the times, including overnights and holidays, that your child spends with each parent.

Florida’s parenting plan concept has changed sole custody into “sole parental responsibility.” The term means that only one parent makes decisions regarding the minor child, as opposed to the shared parental responsibility terms, where both parents make decisions jointly.

Go West

Amid the divorce, Kardashian has continued to live in the $60 million Hidden Hills mansion she shared with West, while the Yeezy designer Kanye has headed west, staying on his ranch in Wyoming.

I’ve written about the Kanye West Kardashian divorce problems before. Last year, after a series of tweets, Kanye claimed Kardashian and her mother, Kris Jenner, were trying to lock him up for medical reasons because of comments made during a rally in South Carolina.

West told the crowd during the Charleston event that he and his wife considered an abortion when she became pregnant with their first child. Kardashian emphasized in a past statement that “living with bipolar disorder does not diminish or invalidate his dreams and his creative ideas, no matter how big they feel to some.”

“I understand Kanye is a public figure and his actions at times can cause strong opinions and emotions. He is a brilliant but complicated person who on top of the pressure of being an artist and Black man, who experienced the painful loss of his mother, and has to deal with the pressure and isolation that is heightened by his bipolar disorder.”

West also asks for the court’s right to award spousal support for either person to be terminated, the filing says. In the document, West’s counsel lists irreconcilable differences as the couple’s reason for divorce, though a date of separation is not given.

West and Kardashian, 40, started dating in 2012 and tied the knot on May 24, 2014. Kardashian filed for divorce in February after nearly seven years of marriage.

The split between West and Kardashian came after a tumultuous period for the pair, who appeared to be on the brink of divorce last summer before reconnecting and spending private time together with their children.

In January, however, multiple sources confirmed that Kardashian had been working with a high-profile divorce attorney and planned to file for divorce. “They are just not on the same page when it comes to their future as a family,” one insider said at the time. “And Kim is okay with it.”

“Kim plans on staying at the Hidden Hills house with the kids. This is their home and Kim doesn’t want to move right now at least,” one insider previously told PEOPLE. “They both agree that the less stress the kids experience, the better. Kanye loves his kids. He wants them to be happy,” the source added. “He doesn’t want to fight with Kim about anything.”

The CNN article is here.

 

Divorce and Paternity

Divorce and paternity are in the news after the NBA’s Minnesota Timberwolves star Malik Beasley has decided to question his son’s paternity during his divorce from his model wife, Montana Yao.

disestablishment paternity

Technical Foul

Beasley, 24, is contesting the paternity of his two year old son, Makai, who was born in March 2019, according to court documents obtained by Page Six on Wednesday.

A paternity test was conducted, but the results were unknown leading up to Beasley and Yao’s March 29 court date.

The Timberwolves player’s attorney, Steven A. Hanley, told Us Weekly that the test was “taken last week.” While the results are pending, a court granted Yao’s request for $6,500 per month in child support, but a judge denied Yao’s request for $5,300 per month in spousal maintenance and for him to pay $20,000 for her attorney’s fees.

Florida Disestablishment of Paternity

I’ve written on paternity and disestablishment of paternity before. Paternity refers to a man who has the rights and responsibilities of a parent, regardless of whether he is the biological father or not.

Through legal paternity, the father is responsible for the child’s upbringing, has a parental relationship with the child, and has an obligation to support the child.

In Florida, there are a few ways to determine paternity, including marriage (such as when the mother and father are married at the time of the birth or Court order that determines legal paternity paperwork. For example, the father voluntarily signs the child’s birth certificate or affidavit of paternity.

You can also disestablish paternity in Florida to avoid these responsibilities. A father needs to demonstrate proof that he is not the father of the child in order to disestablish paternity in Florida.

For example, an affidavit signed by the Father explaining that newly discovered evidence regarding paternity has come to his attention since the time that legal paternity was first established. The evidence must have been discovered after the finding of legal paternity. It cannot have been known prior.

Another important factor to include is the result of a DNA test showing that the legal father is probably not the biological father of the child, or an additional sworn statement stating that he was not able to obtain a DNA sample from the child. The father can also request the court to order the DNA test.

The father’s child support payments also have to be current, or at least, substantially complied with and making child support payments on time. In the event there are any past-due payments owed, the father’s affidavit has to state why the payments are past due.

Finally, a court has to determine that the legal father has not adopted the child. The child cannot have been conceived by artificial insemination while the legal father and mother were married. The legal father must not have prevented the biological father from asserting his rights. Also, the child must have been under 18 years old when the petition for disestablishment of paternity was filed.

However, even if a father properly files a petition for disestablishment and follows all the necessary steps in the statute, a judge can still deny the petition.

Double Dribble

Beasley and Yao were married on March 20, 2020 but Yao filed for divorce on Dec. 8 of the same year shortly after cuddly pics surfaced of Beasley holding hands with Larsa Pippen.

Yao, 22, claimed earlier this month that Beasley kicked her and their son out of their joint home. She alleged on social media that the duo was bouncing around “hotels and Airbnb’s even moving states” until her parents agreed to help them.

The model also denied she cheated on Beasley, who began dating Pippen while they were still married. Pippen, 46, insisted that she met Beasley after he was separated from Yao, but photos of them in Miami suggest otherwise.

“It had nothing to do with me, so I wasn’t thinking anything about it,” Pippen said in February. “If you spent a minute Googling their situation, it wasn’t the ideal situation way before me.”

The article is here.