• 17
  • August
    2011

Asset division can be a contentious issue in any divorce. It is evidently an especially big issue for one New York couple - so much so, in fact, that the husband recently tried an unusual strategy to earn himself a measure of asset protection.

The husband is one of New York's biggest-name financiers. Over his lengthy career, he has worked for several of the most prominent names in New York's finance industry. His work helped the couple amass a $450 million fortune. His wife never worked outside of the home during the 30 years they were married.

The husband and wife have been working on their divorce since 2009 and are now arguing about how to divide their marital assets. This is where the husband tried an unusual tactic. His legal team tried to present evidence from psychologists about the man's "innate intellectual talents" and "unique personal traits." Their goal was to use the testimony to argue that there was scientific basis for the man's "personal capital," which in turn led to the man's vast wealth. The implication, apparently, was that the man's intellect meant he and he alone could take credit for the money the couple had saved up.

A New York Supreme Court justice didn't buy it and refused to admit the evidence. She said there was no reason for the evidence because there was no direct link between the man's "personal attributes" and his financial success. The judge also pointed out that New York follows the equitable distribution format of asset division, in which a couple's estate is divided according to each person's contribution to the marriage.

The judge pointed out that while the man's financial acumen and business savvy undoubtedly contributed to the couple's success, so did the wife's management of the couple's "domestic and social life."

The couple's divorce remains a work in progress.

Source: New York Times Dealbook, "In Divorce Case, Judge Refuses to Hear Evidence of 'Genius'" Peter Lattman, Aug. 4, 2011.