Over the last few years, we have written extensively about the Frank and Jamie McCourt divorce in our San Jose family law blog. Most recently, we wrote a divorce blog post that questioned whether Jamie McCourt made a bad deal when she agreed to relinquish her ownership rights to the Los Angeles Dodgers. Now, it appears that Jamie may be asking herself the same question.
According to recent media reports, Jamie McCourt has filed a motion requesting that her divorce settlement be set aside on the basis of fraud. Specifically, Jamie is alleging that her ex-husband misrepresented the worth of the Dodgers, which resulted in an unfair allocation of the proceeds of the sale of the team.
Under the McCourt's divorce settlement, Jamie McCourt received a guaranteed $131 million payout in exchange for her voluntary relinquishment of her ownership rights to the Dodgers. At that time, it seemed to be a good deal: the Dodgers had gone into bankruptcy in June 2011, and Frank McCourt valued the couple's Dodger's assets at no more than $300 million.
In May of this year, however, Frank McCourt sold the team for over $2 billion. This, Jamie McCourt alleges, caused Frank to receive assets with a worth of more than $1.7 billion in their divorce settlement. This is more than 10 times the amount received by Jamie.
As such, Jamie argued, it is apparent that Frank vastly underrated the value of the team. Even if this was done mistakenly, it should justify the dismissal of the divorce agreement based on the errors in the settlement calculations.
Source: USA Today, "Ex-Dodgers owners Frank, Jamie McCourt back in court," Sept. 26, 2012
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