December 22, 2024

Wendi Murdoch Hires a New Lawyer, Suggesting a Divorce May Turn Messy

Mrs. Murdoch has hired William D. Zabel, a well-known New York trusts and estates lawyer who has represented several women in their divorces from wealthy businessmen, including Jane Beasley Welch during her contentious split from John F. Welch, the former chief executive of General Electric.

A spokesman for Mrs. Murdoch, Christopher Giglio, confirmed the hiring of Mr. Zabel, but otherwise declined to comment.

Mrs. Murdoch had been represented by Pamela M. Sloan, who advised Mrs. Murdoch on her prenuptial agreement with Mr. Murdoch in 1999, when the couple married in front of 82 guests on board his 155-foot sailing yacht, the Morning Glory.

But since then, Ms. Sloan had become friendly with the Murdochs, and Mrs. Murdoch decided that she wanted more independent counsel, said a person with direct knowledge of the case who like many people declined to be identified discussing personal matters.

Ms. Sloan did not return a request for comment.

Although the Murdochs signed a prenuptial agreement and two postnuptial agreements delineating the separation of assets in the event of a divorce, there are a number of areas that remain up for negotiation, said people with knowledge of the case who spoke only on the condition of anonymity.

For one, there are the custody arrangements and child support for their daughters, Grace, 11, and Chloe, 9, these people said. Because they are not binding on the court, custody arrangements and child support are rarely part of prenuptial agreements, and are often used by the less-moneyed spouse as leverage in negotiations.

Other issues that could be contended include the division of certain assets, like their Fifth Avenue penthouse and the yacht, on which Mrs. Murdoch, 44, and her daughters are currently vacationing in the Caribbean.

There is also the contentious issue surrounding the Murdoch family trust. Mr. Murdoch surprised his wife in 2006 when he announced during a television interview with Charlie Rose that Grace and Chloe would have the same economic interest in the family’s trust but not the same voting rights as his four children from his previous two marriages.

The slip almost created a separation, and prompted Mrs. Murdoch to negotiate more favorable terms for her daughters, according to people close to the couple.

Mr. Zabel, an expert in trust law, is expected to examine the soundness of the trust structure.

“Even with the most sophisticated couple, unless you have perfect 20/20 foresight often some issues can arise that weren’t taken into consideration and are prime for negotiation,” said Paul M. Talbert, a divorce lawyer at Donohoe Talbert in New York, who is not involved in the Murdoch case.

Representing Mr. Murdoch, 82, in the divorce proceeding is Ira E. Garr of the law firm Garr Silpe. But Mr. Murdoch is also relying heavily on the advice of Gerson A. Zweifach, the general counsel of both News Corporation and 21st Century Fox, as the newly separated companies are now known. Mr. Murdoch’s 1998 divorce from his second wife, Anna, cost more than $110 million in cash.

A company spokeswoman has said the divorce will have no effect on either company.

Shortly after a visit to the couple’s Northern California home in June, Mrs. Murdoch returned to New York to learn that Mr. Murdoch had served her with divorce papers, according to several people close to the couple who would not discuss their private matters for attribution.

Mrs. Murdoch, after interviewing about eight different lawyers, including leading members of the matrimonial bar like Robert Stephan Cohen and Peter E. Bronstein, chose Mr. Zabel. Initially, Mrs. Murdoch did not have time to screen potential divorce lawyers and turned to Ms. Sloan, a trusted confidante, by default.

The core of Mr. Zabel’s practice at the law firm Schulte Roth Zabel is advising wealthy clients like George Soros and the Lehman family, drafting their wills and trusts and advising on estate planning. But he also handles messier matters for his clients; in 2010, for instance, he represented the estate of his longtime client, the Palm Beach philanthropist and investor Jeffry M. Picower, in a $7.2 billion settlement with the federal government over claims related to money that he received from Bernard L. Madoff’s Ponzi scheme.

There is also the occasional divorce assignment. Much of the time, Mr. Zabel will play the role of mediator, and has peaceably settled the divorces of the late author Michael Crichton, the radio host Howard Stern and the New York Jets owner Robert Wood Johnson IV.

But at times, he has been involved in nasty marital spats, like that of Ms. Welch, whose marriage collapsed after she discovered her husband’s dalliance with the journalist Suzy Wetlaufer. The divorce was fiercely litigated and settled on the courthouse steps in 2002 only after Mr. Welch agreed to pay Ms. Welch several hundred million dollars.

More recently, he represented Christina Lurie, the former wife of the Philadelphia Eagles owner Jeffrey Lurie, who divorced after 20 years of marriage. Ms. Lurie remained a part owner of the team.

Because he keeps divorce representations to a minimum, Mr. Zabel often refers cases to his former wife, Eleanor B. Alter, herself a prominent matrimonial lawyer in New York.

Article source: http://www.nytimes.com/2013/07/30/business/media/wendi-murdoch-hires-a-new-lawyer-suggesting-a-divorce-is-getting-messy.html?partner=rss&emc=rss

DealBook: Powerball Millions Go to 3 Asset Managers in Greenwich

Tim Davidson, second from left; Greg Skidmore, center; and Brandon Lacoff, second from right, on Monday with a ceremonial check for $254 million won in the Connecticut Powerball on Nov. 2.Connecticut Lottery, via Associated PressTim Davidson, second from left; Greg Skidmore, center; and Brandon Lacoff, second from right, on Monday with a ceremonial check for $254 million won in the Connecticut Powerball.

A lottery drama may be coming to a close.

After three Connecticut asset managers stepped forward last week to claim a $254.2 million Powerball jackpot on behalf of the Putnam Avenue Family Trust, speculation swirled that they were handling the money on behalf of a client who wished to remain anonymous.

Now, the beneficiary of the trust has been revealed as a second entity, called the Western Putnam Avenue Trust, that was also formed in connection with the lottery winnings. The three men have stated in an affidavit that they are the only beneficiaries of that trust, which will receive all the assets held by the first trust when it expires on Nov. 22, 2012, according to a copy of the Putnam Avenue Family Trust agreement reviewed by The New York Times.

On Nov. 28, Timothy C. Davidson, Brandon E. Lacoff and Gregory H. Skidmore, three executives with Belpointe Asset Management, an investment firm based in Greenwich, Conn., claimed the winning ticket in the lottery jackpot, the largest in the state’s history. The three money managers formed a trust, collecting an after-tax payment of around $104 million.

The win touched off gossip in Greenwich, a suburb that is home to many of the nation’s wealthiest investors. In the ensuing days, Mr. Davidson sent messages to friends asserting that he was not the true winner of the lottery, according to a copy of one of the messages. He claimed that Belpointe, which managed approximately $100 million, was investing the winnings for a client in exchange for a 2 percent fee.

Those messages were “an ill-advised attempt at humor,” Gary Lewi, a spokesman for Mr. Davidson and the other trustees, said on Tuesday. Mr. Davidson has since identified himself as the person who bought the winning ticket at a BP gasoline station near his home in Stamford, Conn.

The three men signed an affidavit, which was filed with the Connecticut Lottery Corporation and first reported by the Hearst Connecticut Newspapers and The Hartford Courant, that states that they are the sole “lifetime beneficiaries” of the West Putnam Avenue Trust, and that no ineligible winners are involved, according to Jason Kurland, the group’s lawyer.

Collecting lottery winnings through a trust is not uncommon. But before the affidavit was unearthed, the trust-within-a-trust structure struck some experts as vague.

The trust was drafted in a way that the ultimate beneficiary could not be ascertained, said Ronald J. Weiss, a partner at the law firm Skadden Arps specializing in trusts and estates. He is not involved in either trust.

Mr. Kurland said that his three clients were “not hiding anything,” and that the trust structure was intended for privacy and to give the trustees certain options for planning their estates.

Mr. Lewi, the trustees’ spokesman, said the trust agreement had been “reviewed by counsel, and by the state of Connecticut, and is totally consistent with standard estate planning.”

After the burst of intense media attention last week, the three asset managers announced Sunday that they would donate $1 million to five charities focused on the well-being of military veterans, including the Bob Woodruff Foundation and the Intrepid Fallen Heroes Fund.

“We are leveraging our professional experience and our collective success in money management to ensure these lottery dollars go far further than their face value,” Mr. Davidson, Mr. Lacoff and Mr. Skidmore said in a statement announcing the gifts.

Article source: http://feeds.nytimes.com/click.phdo?i=9fb1861d85fdebf4dd52fe460a13c5f6