Portrait of John K Grubb

Texas Divorce and Prenuptial Agreement

5005 Riverway Drive, Suite 450 • Houston, Texas 77056

Phone: 713-877-8800 • Fax: 713-877-1229

Frank Pays $225k a Month in Alimony; Dodgers Get New Owner

LA Dodgers owner Frank McCourt and his wife Jamie have been battling it out in court ever since the two separated in 2009. Earlier this month, the two finally came to a settlement in a divorce case that involved a lot of assets and a lot of debt.

For Dodgers fans, the team may finally have some closure and a new owner sometime in the next year. Major League Baseball had been running the team after it became clear that Frank’s financial situation put the team in jeopardy. The team has been in bankruptcy protection since this summer. MLB and McCourt will now be looking to sell the team; the two hope to have a new Dodgers owner in place by opening day, April 5 of next year. Frank and Jamie bought the Dodgers in 2004 for $430 million. Sale of the team in the coming months should bring in around $1 billion, so Frank is hopeful that the proceeds will be enough to cover his outstanding debt and tax liabilities.

Of the net proceeds of the Dodgers sale, Jamie is going to receive the first $131 million. Frank has an incentive to sell the team sooner rather than later, as he gets a $1 million discount for each month before April 30, 2012, that he pays the full settlement. Until he does so, Jamie is going to be receiving $225,000 in spousal support.

An interesting part of the McCourts’ divorce settlement is that a California judge refused to uphold their post-marital agreement. The reason is that the judge could not determine that there had been a “meeting of the minds,” to use a legal phrase. In other words, it was not clear what the agreement meant for each side and whether they agreed to the same thing.

Couples whose assets increase during the course of the marriage should consider using a postnuptial agreement to reflect how they wish to treat those assets.

John K. Grubb & Associates, P.C. – Houston divorce attorneys

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