Judge Tosses Out Prenup: Dodgers ownership still undecided

There is no dispute that the divorce of Frank & Jamie McCourt has been the most publicized divorce this year, particularly since the ownership of the Dodgers will ultimately be determined in the divorce.

It appears that Frank & Jamie McCourt had a prenuptial agreement drawn up, but the testimony revealed that there were different versions of this agreement—one giving the Dodgers to Frank, and one sharing the Dodgers between Frank & Jamie.  The Judge heard testimony for days about this issue, and finally made his decision.

In a 100 page opinion (and yes, that is a very LONG opinion), the Judge tossed out the prenuptial agreements.  The Judge ruled that the evidence showed that Frank & Jamie McCourt never fully agreed on any terms regarding the Dodgers, and that each has a mistaken belief about the alleged differing prenuptial agreements.  The result is that the Dodgers will not be divided pursuant to any prenuptial agreements between Frank & Jamie McCourt.

What does that mean now?  Well, the Judge will eventually have to decide who owns the Dodgers.  Frank McCourt will argue that he bought the Dodgers, that they are owned in his own name, and that the team is his own personal property.  Jamie McCourt will argue that the team was purchased during the marriage and that it is marital property, subject to a 50/50 split.

Lessons to be learned?  If you hire a lawyer to draft a prenuptial agreement—it is probably important to make sure that there is only one version.  Sounds easy, right?  I would assume so—but doesn’t seem that way for the McCourts.

You can read about the Judge’s decision here: Judge invalidates McCourt agreement, leaving Dodgers ownership in question

If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.
 

What happens if Mediation fails?

It looks like the judge will have to decide the fate of the Dodgers after all.  While Frank & Jamie McCourt are waiting for the judge’s ruling in their divorce case, they agreed to meet again with a mediator to see if they could settle their differences.

After lengthy mediation sessions, the mediator submitted a proposed divorce settlement to both Frank & Jamie McCourt, and they had until noon on Tuesday, November 30, 2010, to either accept the settlement or reject it.  Frank McCourt accepted the proposal, but Jamie rejected it.

While it is true that many divorce cases can settle during mediation, it is also true that some do not.  In Michigan, people going through a divorce will often be required to go to mediation during their case.  However, the mediator cannot force a settlement.  The mediator can only try to assist both people in coming to a mutual agreement on their issues.  If no agreement is reached, mediation is concluded and the case continues.

Sometimes this means that the case will continue to trial.  Often, though, the case will still settle privately, as a good mediator will assist each person in seeing both sides of the issue, and also assist them in understanding how their judge will see the issues.

As far as the Dodgers go, this appears to be the last chance for any type of private settlement, as both Frank and Jamie McCourt have dug in their heels.  Even though Frank accepted the mediator’s proposal, the proposal is not final unless both of them accept it.  Jamie McCourt appears to want the judge to make the final decision, and that should be expected within the next couple of months.

You can read the LA Times article here:  Jamie McCourt rejects divorce settlement proposal. 

If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.
 

What is Divorce Mediation?

The divorce trial of Dodgers’ owner Frank McCourt & his wife Jamie has taken a brief pause so that the couple and their attorneys can go through Mediation today in order to try to resolve and settle their divorce.

What exactly is Mediation?

Mediation in divorce cases is a private session between the couple, their lawyers, and a neutral Mediator, usually a lawyer who has been trained in Mediation, where they freely and openly discuss settlement of all or some of the issues in the divorce. In Michigan, everything that happens in Mediation is confidential, and offers and counter-offers exchanged in Mediation cannot be used in the Divorce trial or further proceedings. The Mediator’s role is to encourage the couple to work out their differences and come to a mutual resolution of all issues. If an agreement is reached, it is reduced to a final writing, a Divorce Judgment, and entered by the Court, thus ending the divorce.

Many divorce cases resolve in Mediation, and it is by far a less expensive alternative than a divorce trial. However, even in the middle of trial, like the McCourt’s trial, Mediation is also a tool to try to resolve issues that remain outstanding and disputed.

You can read the LA Times article here: Frank McCourt attorney's admission sets the stage for a possible settlement


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.
 
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Divorce could Dissolve the Dodgers

The divorce of Frank & Jamie McCourt has become even more heated as the couple has mutually asserted that each of them doesn’t have enough money, and bills are piling up sky high. The Judge handling their divorce has indicated that if they continue to bicker about money, he may order that the asset they are arguing about, the Dodgers, will be sold.

Can the Judge actually do that? Can the Judge order that the Dodgers be sold to the highest bidder? Absolutely!

With the downward trend of the economy, more and more couples are fighting about debt rather than assets, and most property or assets are under water and have negative equity. Sometimes even when there is property with positive equity, the debts are so overwhelming that the property has to be sold to pay off the debt.

Family Courts and Judges have the power to order what is fair and equitable, and can make decisions on how property is to be valued, divided and distributed. They can make these decisions even to the lament of Dodgers fans.

It is unlikely that the Dodgers will actually be sold because of the divorce—but not because the Court or the Judge lacks the power to order it. It was likely a serious warning from the Judge to the McCourts to stop their bickering and focus on what is truly important so that the issues can be resolved.

You can read the LA Times article here: Judge in McCourts’ divorce case talks of Dodgers Sale




If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.