Real estate at the center of judge’s ruling in high-asset divorce

On Behalf of | Oct 22, 2018 | High-Asset Divorce |

A New York divorce is complicated enough without the details being openly debated in the media and by outsiders who are not fully informed, but this is the reality with a high-asset divorce. New York has many people who are of significant means but are not necessarily household names. Those who have major wealth and have decided to part ways will often engage in a dispute over various items from the marriage. Such is the case with property interests and disagreements as to whether valuable properties like real estate should be part of the divorce or belong to one of the spouses alone. When there is a high-asset divorce, legal advice is critical.

An important ruling was made as part of a divorce between an art dealer and his wife regarding a valuable property. The art dealer, who is said to be a billionaire, is trying to sell a townhouse on the Upper East Side of Manhattan. Its asking price is $72 million. The wife was trying to stop the sale, but the judge ruled that there is no legal justification to do so because the property is owned by a limited liability company (LLC) and technically not by the husband.

The LLC that was funded by the man’s father purchased the property five years ago at a cost of $15 million. The couple had spent $57 million to renovate it. Since the LLC paid for the property, it is not subject to restrictions for the sale of property during a divorce. Art in the couple’s summer residence also falls into this category. The divorce is ongoing.

This is just one aspect of a high-asset divorce that can be complex and difficult. When there is real estate, artwork and other items of value that a couple had when they were married, it is unavoidable that there will be a battle over them. Of course, some marriages can come to a reasonably amicable conclusion with negotiation and flexibility. Others can be even worse than this situation. When proceeding with a divorce in which property division will be a concern, a law firm that is experienced in high-asset divorces can help.