Tag: Divorce Property

Equitable Distribution of Google Stock

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.

 

Equitable Distribution of Sports Memorabilia in Divorce

The Chicago Cubs’ Ben “Zorilla” Zobrist and his wife, singer Julianna Zobrist, are finally starting their divorce trial this week in Tennessee, and the equitable distribution of his sports memorabilia – jerseys, trophies, and rings – is taking center field.

Equitable Distribution Sports Memorabilia

Play Ball

On August 9th, proceedings will begin in the highly publicized divorce trial, and how the marital estate is to be distributed. For months, the duo’s fallout has captured national attention, with shocking details in the news.

Julianna wants an even split of all assets and primary custody of the children, with child support. But interestingly, she also wants an additional $4 million – essentially, the “amount of money he failed to preserve by abruptly and intentionally failing to satisfy his baseball contract.”

The return netted Ben $4.5m of his $12.5 million salary. In April, she was awarded $1.72m from the sale of the couple’s house in Chicago, as well as an additional $772,500 to “purchase a new home as her separate property.”

On the other hand, Ben alleges Julianna overspent from their marital estate— a court order limited her to spending $30,000 per month for living expenses due to exorbitant spending — he’s seeking 60% of the couple’s assets, and believes his sports memorabilia should not be part of the equitable distribution because it’s his separate property.

Worse, Ben argues Julianna’s motive in hiding her affair with their pastor/marriage counselor, was to trick him back into playing baseball so there would be more money for them to divide.

“One would be hard pressed to concoct a more deceitful, sinister, and otherwise inappropriate scheme than wife has devised in this divorce matter“

According to the Tribune, Ben estimates their marital estate is worth $24 million, while Julianna estimates it’s worth nearly $31 million

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 before the marriage; 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 baseball player’s divorce, non-marital assets would include sports memorabilia acquired separately by non-interspousal gift.

Foul Ball

The duo filed for divorce after Ben found out Julianna was cheating on him with their pastor Byron Yawn, who was also Ben’s business partner . . . and apparently their marriage counselor!

Ben filed a lawsuit claiming Yawn, who at the time was senior pastor and elder at Community Bible Church in Nashville, provided counseling to the couple before and during their marriage. He is seeking $6 million in damages from Yawn.

Julianna hired a sports memorabilia expert to assess the monetary value of many of the items Ben accumulated during his 14-year Major League Baseball career. The memorabilia includes uniforms, which were given to him by different teams, bats, balls and gloves, some of which were used in games, his World Series and All-Star Game rings, World Series trophies, and a 2016 World Series MVP Camaro gifted to him by General Motors.

The replica World Series trophies are valued at $2,000 each. The Camaro is valued at $30,000. Other items include gifts from teammates and friends such as a Roger Clemens-autographed baseball and a Ted Williams-signed bat.

The issue comes down to whether those items legally should be considered Ben’s “separate property” or part of the marital estate.

Zobrist does not consider sports memorabilia “marital assets” for a few reasons. First, he claims none of his contracts with major-league teams discussed baseball hats, gloves, jerseys, trophies or rings as being part of his compensation and because he has no intention of selling them or doing anything but keeping them as mementos for himself and his family.

He also argues that sports memorabilia are gifted keepsakes from other players during his baseball career. This is a customary practice in baseball and gifts are specifically set out as separate property under Tennessee code.

The Chicago Tribune article is here.

Settling Britain’s Largest Property Division Award

Billionaire Farkhad Akhmedov and his ex-wife Tatiana Akhmedova are settling Britain’s largest property division award of 450 million pounds. He will be paying her around 135 million pounds in cash and other assets to settle. The announcement ends the largest financial dispute that Britain’s divorce courts have ever seen.

International Divorce Rates

From Russia with Love

Tatiana Akhmedova, who is originally from Russia, decided to accept the cash and art settlement, which represents about one-third of the property division award she obtained in 2016. The parties’ settlement agreement ends a very bitter and long-running legal dispute.

The fight for assets has spanned at least nine jurisdictions since a London judge awarded Tatiana some 450 million pounds — amounting to 41% of Farkhad’s assets — in 2016. The Former Wife’s litigation budget in pursuing her settlement was expensive too. According to reports she had to borrow fund from a litigation finance group called Burford Capital Ltd., which stated it will receive $103 million.

“I will burn this moneys rather then will give her”

Farkhad said in a WhatsApp message to his son in March that year.

Florida Property Division

I’ve written about this case in the past along with the subject of property division in Florida many times before. 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, as in the Akhmedov divorce, the court has the authority.

However, the court must base an unequal distribution on certain factors, including: the contribution to the marriage by each spouse; the economic circumstances of the parties, the duration of the marriage, or any interrupting of personal careers or education.

It has been a long-standing rule in Florida that an unequal distribution of marital assets may be justified to compensate for one spouse’s “intentional dissipation, waste, depletion or destruction of marital assets after filing of the petition….”

Champagne Wishes and Caviar Dreams

The couple met in 1989, marrying four years later and moved to London. The marriage formally ended in late 2014.

A spokesman for her ex-husband Farkhad Akhmedov said:

The intervention in a case over which the English Court should have had no jurisdiction and the involvement of Burford ultimately achieved nothing for Tatiana. Burford and she spent years and millions of pounds on a costly global tour of various jurisdictions in their attempts to seize Luna. Every one of them failed and the yacht remains and will remain in the ownership of Farkhad and the family trusts. Tatiana has ended up with not a penny more than she was offered by her ex-husband six years ago. Farkhad has provided no payment to Burford. Those monies will have to be paid by Tatiana, thus reducing further to her the benefit of a settlement she could have had before the lawyers and financiers got involved.

The Former Wife was awarded a 41.5% share of her ex-husband’s £1 billion-plus fortune in late 2016. But he did not pay and she has spent years in courts in Britain and abroad in a bid to trace and seize his assets.

At one point she hired a team to try to secure her ex-husband’s enormous yacht, Luna, from a Dubai dock, led by former members of the British Special Boat Service – the naval version of the SAS.
Assets separately seized had included the yacht’s private £5million Eurocopter and its £1.5million Torpedo speed boat, customized with a 1965 Ferrari GTO steering wheel. A £40million global express jet had also been taken.

The Luna was sold to Farkhad in 2014 for £225million, has nine decks, space for 52 crew, two helipads, a vast swimming pool and a mini submarine. They are capable of acting as VIP transport and being lifeboats at the same time. Luna also has one of only two multipurpose custom made lifeboat-limousines in the world at a cost of over £2.8m each.

The Daily Mail article is here.

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.

Modern Family Problems Divorce and the Home

Divorce and what to do with the home is in the news now that Modern Family actress, Julie Bowen, has listed her home for sale. Although she finalized her divorce from ex-husband Scott Phillips a few years ago, her case raises the issue of housing again.

Home Divorce

Hollywood Hills Home

According to many reports, the couple reached an agreement to split their assets of $25.3 million directly down the middle. In the divorce agreement, Bowen, who first filed for divorce in February, will receive more than $13 million while the real estate investor will receive $12.3 million.

In their marital settlement agreement, Bowen got to keep the Hollywood Hills house, worth $3.1 million at the time. Bowen had purchased the property after the separation.

Phillips, on the other hand, got to keep the couple’s $5.4 million marital home. Details of custody, child support and spousal support were filed in a private settlement agreement.

House and Divorce

I’ve written about the marital house during a divorce before. Generally, the home remains a marital asset, which is subject to equitable distribution, regardless of who lives there during the divorce process.

If a home is marital then both parties have equal rights to buy – out the other’s share. Both may also be on the hook for liabilities.

Until a divorce parenting plan in place, if you are interested in maintaining a meaningful relationship in your child’s life, leaving the home before a timesharing agreement is entered may show a lack of real interest in the child’s daily life.

Moving out can create the appearance of a new ‘primary residential parent’ by default. Worse, if the process takes a long time, it creates a new status quo.

The person leaving during a divorce may still have to contribute for the expenses of the home while also paying for a new home. It can be costly, and prohibitive expensive when you know that the process will take a long time.

Staying in the same home could create an incentive to negotiate a final settlement because living with your soon to be ex-spouse is very uncomfortable. However, if someone moves out, the person remaining in the home is sitting pretty and may be less inclined to settle.

Before moving out, there should be some discussions about maintaining the home and who is paying for which expenses, an inventory should be made of the personal property, artwork, silverware etc., and the boundaries for when the ‘out-spouse’ can use and enjoy the home after vacation

A Modern Family Home

The designer Hollywood Hills pad she purchased in 2017 shortly after splitting from her ex-husband was reportedly worth $3.1 million during the divorce because that was what she paid for it. The mid-century modern time capsule home just off iconic Mulholland Drive is now on the market for $3.85 million.

Designed by architect Thornton Abell, the glass-walled structure is made up of four bedrooms and three baths and spans over 3,200 square feet. Built in 1959 for prominent heart surgeon Augustus Bakos, the home was later acquired by the son of Beach Boys co-founder and guitarist Carl Wilson, who renovated the home and expanded it.

Pegged as “exceedingly private,” the property sits on a long, gated driveway and boasts pastoral canyon and treetop views. Interior features include floor-to-ceiling walls of glass, which are complemented by Palos Verdes stonework, terrazzo floors, custom divider screens and teak cabinetry.

Other interior finishes include a granite and stainless steel kitchen, an expansive master suite with a fireplace, a large walk-in closet and a terrazzo master bath with a glass ceiling.

It also boasts separate guest quarters, a small detached gym in the backyard, a poolside living room and a lush garden atrium. Bowen, 51, had been married to Phillips, a real estate investor, for over 13 years before calling it quits. They share 14-year-old Oliver and 12-year-old twins John and Gustav.

The New York Post article is here.

 

Divorce Real Estate Problems: House Custody?

You can face many real estate problems in a divorce, but how about house custody? One unique case involves a couple which jointly owns a home, are both on the mortgage, and whose children left. She wants to be able to spend time living at their home alone. The husband disagrees and refuses to leave for any amount of time. Does she have the legal right to house custody half of the time?

House Custody

Brick and Mortar Issues

The New York Times article re-frames the issue as a case of a married couple, jointly owning a house, with equal rights to it. So, the article states both need to be in agreement about what to do with the property.

Neither of you can sell the house without the other’s consent, nor can you limit each other’s access to it. It’s as much his house as it is yours.

If they bought it together and maintained it together, it’s marital property and most likely it would be divided 50-50. Most likely, they would be both entitled to live there until the place is sold.

The article suggests that for the moment, set aside your immediate desire to share time at the house and, instead, figure out what you ultimately want for the house once your divorce is finalized.

Do you want to keep the house? If so, you may eventually need to buy out your husband when you divide your assets. Or do you want to move? In that case, your husband could either buy you out or you could sell the property and divide the assets.

Florida Divorce Real Estate Problems

I’ve written about real estate problems in divorce cases before. A big question frequently arises: should you move out of the house before the divorce is over?

Sometimes the arguing gets too intense, and the court must intervene. For one couple in Brooklyn, their arguing resulted in their being ordered to build a wall dividing their home so each could stay in the house peacefully.

This was not just a simple line on the floor as in the 1989 movie: War of the Roses, but an actual wall of plywood and sheetrock through the middle of their house (see picture above). Interestingly, the judge gave the wife the kitchen and the husband the dining room.

The marital home is a valuable asset, maybe your most valuable asset, but it is also a place for you to live in and it is an important, and possibly big part, of the final settlement. Consider the following:

Marital Asset

The home remains a marital asset, which is subject to equitable distribution, regardless of who lives there during the divorce process. If a home is marital then both parties have equal rights to buy–out the other’s share. Both may also be on the hook for liabilities.

Children’s Issues

Until a parenting plan in place, if you are interested in maintaining a meaningful relationship in your child’s life, leaving the home before a timesharing agreement is entered may show a lack of real interest in the child’s daily life. Moving out can create the appearance of a new ‘primary residential parent’ by default. Worse, if the process takes a long time, it creates a new status quo.

Cost

The person leaving may still have to contribute for the expenses of the home while also paying for a new home. It can be costly, and prohibitive expensive when you know that the process will take a long time.

Settlement

Staying in the same home could create an incentive to negotiate a final settlement because living with your soon to be ex-spouse is very uncomfortable. However, if someone moves out, the person remaining in the home is sitting pretty and may be less inclined to settle.

If you Leave

Before moving out, there should be some discussions about maintaining the home and who is paying for which expenses, an inventory should be made of the personal property, artwork, silverware etc., and the boundaries for when the ‘out-spouse’ can use and enjoy the home after vacation

The New York Times piece correctly suggests thinking about your long-term goals. Once you’ve done that, try to reach a temporary agreement for how to weather this transition period.

That may mean that you alternate time spent in the house, or it may mean that one of you moves out, or that you both continue to live there until you can sell the property and move on with your lives. Moving out will have financial ramifications for both of you and those need to be carefully considered.

The New York Times article is here.