The Dodgers' McCourts go back to divorce court

By Edwards & Associates posted in Property Division on Wednesday, May 25, 2011

The 2011 baseball season has seen its highs and lows for the Atlanta Braves. Although some fans have been upset by the team's inconsistent performance, they can take solace in the fact that the Braves are not facing the same troubles that the Dodgers are facing. Major League Baseball has already assigned a watchdog to the Dodgers to keep an eye on the team's day-to-day financial condition. In the latest chapter in the property division contest over the Dodgers, the former wife of Dodger's owner Frank McCourt wants the baseball franchise to be sold to keep the team from being taken over by the league.

Jamie McCourt, Frank McCourt's former wife, has filed a claim in Judge Scott Gordon's courtroom to force the sale of the Dodgers. The judge in the case is familiar to the McCourts. Last December, while presiding over the couple's divorce proceedings, Judge Gordon threw out a post-nuptial contract the McCourts had signed in 2004 that would have given Frank McCourt full control of the team.

The ex-Mrs. McCourt said the team has been mismanaged since she was fired as a Dodgers' chief executive by her ex-husband. Her goal, according to court papers, is to get the most value for the franchise for everyone involved, including her ex and the fans. A hearing for arguments on the property division issue is set for June 22.

Media reports say the team is having trouble paying the bills and there are rumors of impending bankruptcy, but Frank McCourt says he's got the financial problems solved. McCourt asserts that the team has cut a $3 billion deal with Fox television for game broadcasts that will bring in a team-saving first payment of $300 million.

The rub for McCourt is that the league must approve that television deal before it becomes reality and that's not something MLB Commissioner Bud Selig says he will do anytime soon. Selig says he won't make any decision on the matter until he gets the results of two separate investigations into the Dodgers' finances. 

Source: Thomson Reuters News and Insight, "Jamie McCourt seeks immediate sale of the Dodgers," Mark Lamport-Stokes, 5/19/2011

Economic conditions affect divorce rate in Georgia

On behalf of Edwards & Associates posted in Divorce on Friday, May 6, 2011

Studies have shown that more marriages end in divorce during a national economic recovery than during a financial crisis. Couples thinking about leaving a marriage tend to feel too uncertain about holding onto a job, selling a home, dividing assets and the extra costs associated with getting divorced to make such a drastic move, according to the American Academy of Matrimonial Lawyers.

During the peak of the Great Recession of 2008-2009, couples modified their budgets along with their wishes to breakup. In the recession's first year, the U.S. divorce rate dropped 24 percent, plunging by 57 percent in last year of the crisis. Since the financial recovery began, statistics for marriage dissolutions once again started to creep up, especially among wealthier Americans whose individual stock portfolios have recovered sooner than the overall economy.

The U.S. has the highest divorce rate in the world with almost 5 divorces for every 1,000 people. Twice that many people decide to marry, although during the 19-month recession, even engaged couples delayed wedding plans. A 2009 Pew research poll found that, for adults 35 and younger, 15 percent suspended marriage for economic reasons and 14 percent delayed the idea of having more children.

One area of the economy that has not yet seen a turnaround is the housing market. Many couples who had been hoping for better housing values before divorcing, have become impatient waiting for the price of homes to increase. Weighing the chance that it may take years for economic recovery to affect the value of real estate, many husbands and wives who have been thinking about calling it quits are no longer postponing the move to make permanent divorce plans.

Wall Street III: Diandra Douglas' Lawsuit Never Sleeps

On behalf of Edwards & Associates posted in Property Division on Wednesday, April 20, 2011

In November, we wrote that Michael Douglas' "Wall Street" earnings were safe for a time after a judge threw out his ex-wife's lawsuit. If his ex-wife, Diandra Douglas, has her way with a renewed lawsuit over marital property division, his earnings for a film he made 10 years after their divorce will be split 50/50.

Michael Douglas returned to court this month to contest the renewed lawsuit brought in New York court involving his earnings for the 2010 film "Wall Street: Money Never Sleeps." The case was previously dismissed last November when Judge Matthew F. Cooper decided that California would be the proper venue for the lawsuit.

Diandra Douglas is arguing that New York is the proper venue for her lawsuit because both she and Michael have ties to New York. She believes that she should be awarded 50 percent of Michael's earnings from the 2010 film under the divorce agreement. Their divorce agreement awarded her half of all earnings for Michael's acting work during their marriage, which officially ended in 2000.

She is arguing that because the 2010 film was a sequel to the 1987 "Wall Street" film that Michael made during their marriage, and because Michael was reprising his role as the greedy Gordon Gekko, she should be entitled to half of his earnings for that film. Michael Douglas' attorneys are arguing that the divorce agreement did not include any future films released. To date, Diandra Douglas has been awarded an estimated $50 million in the divorce settlement.

Judge Cooper noted that the original divorce papers clearly state that the California court system retains jurisdiction over the case. Michael Douglas' lawyers are arguing that not only should Diandra be "ashamed of herself" for returning to court on the matter, they believe she was awarded what she deserved when the divorce was finalized years ago.

This is a rather unexpected move for Diandra Douglas. When Diandra's lawsuit was dismissed in November, it appeared that the next logical step would be for her to file suit in California. However, it appears that Diandra really wants her day in court to be in New York.

Source: Bloomberg Businessweek, "Michael Douglas Ex-Wife Back in Court on 'Wall Street' Suit," Karen Freifeld, 4/12/2011

McCourts may be working on a divorce settlement

On behalf of Edwards & Associates posted in Property Division on Monday, April 4, 2011

In the past, we have written about the divorce between Frank and Jamie McCourt. The McCourt divorce serves as an example of how high the stakes can be in divorces when there are substantial assets involved. The McCourt divorce will ultimately determine the ownership of the Los Angeles Dodgers, one of baseball's most valuable franchises.

In December, we wrote that Judge Scott Gordon threw out a controversial property division that would have given Frank McCourt complete ownership over the team. When that happened, Jamie McCourt announced that the judge's decision gave her a 50 percent ownership stake in the team.

Immediately after the December decision, Frank McCourt's attorneys announced that they would pursue a second trial on the issue of ownership. They said they had an alternative legal theory that would give Frank complete ownership of the team.

With the 2011 Major League Baseball season underway, it now appears that the McCourts are earnestly working on reaching a settlement. Attorneys from both sides requested that a hearing scheduled for April 11 be delayed one month.

The one-month delay now gives both sides additional time to negotiate a settlement agreement that would end the property division contest between Frank and Jamie. Although we can't know exactly how the McCourts will settle their marital property dispute, past negotiations between the McCourts have focused upon Frank keeping the team and needing to compensate Jamie for her interest in the franchise. The parties appear to agree to this idea in principal, but they have been unable to agree to a dollar amount so far.

Source: Los Angeles Times, "Frank and Jamie McCourt working quietly on a settlement," Bill Shaikin, 3/29/2011

Tags: McCourts, property division, settlement agreements