Earlier this year, Jamie McCourt, the former CEO of the Los Angeles Dodgers and ex-wife of the Major League Baseball franchise’s former owner, Frank McCourt, filed a petition to overturn the couples’ divorce settlement. The divorce settlement was reached in 2011 when Frank McCourt still owned the Los Angeles Dodgers.
In the couple’s 2011 divorce settlement, Jamie McCourt gave up her ownership claim to the Los Angeles Dodgers in exchange for $131 million.
The terms of the couple’s divorce settlement provided Jamie McCourt with $131 million in addition to a share of the couples residences. In exchange, Jamie McCourt gave up her ownership claim to the Major League Baseball franchise.
Jamie McCourt argues that Frank McCourt represented that the franchise was worth less than $300 million but sold the team for $2.15 billion just six months later.
In the petition filed earlier this year, Jamie McCourt argued that she agreed to the terms of the divorce settlement because her former husband misled her regarding the value of the Los Angeles Dodgers franchise. Jamie McCourt alleged that her ex-husband represented that the Major League Baseball franchise was valued at less than $300 million while under the penalty of perjury. However, just six months after the couple’s divorce settlement was finalized Frank McCourt sold the team for $2.15 billion through a bankruptcy court auction.
A Los Angeles Judge ruled this week that Jamie McCourt did not provide sufficient evident to support her allegations of fraud.
This week, Los Angeles County Superior Court Judge Scott M. Gordon issued a ruling denying Jamie McCourt’s petition. In his opinion, the Judge reasoned that Jamie McCourt failed to provide the Court with sufficient evidence to prove that she did not have a full and complete understanding of the value of the couple’s assets when she agreed to the divorce settlement. The Judge went on to reason that Jamie McCourt was a sophisticated individual who had familiarity with the business, having served as the franchise’s CEO.
Study reveals that couples routinely hide financial information from one another.
A Forbes magazine article published last year revealed that partners routinely hide assets from each other, both when their marriage is going well and during divorce proceedings. The article cited a study conducted by the National Endowment for Financial Education which found that 58 percent of spouses report hiding cash from their partners and 34 percent admitted to lying about their finances, debt, or earnings.
Misrepresenting information in a Financial Affidavit that is filed with the court in a divorce proceeding is illegal and can result in serious penalties. If you believe that your former spouse misrepresented financial information during your divorce proceeding and settlement process, you should contact an attorney immediately. An attorney will be able to review the circumstances of your case and determine your options for recourse.
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