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If George A.L. David thought a post-nuptial agreement would simplify his marriage or divorce that has not been the case so far.

David, who stepped down as CEO of United Technologies eight months ago, spent a week in a Hartford, Conn., divorce court trying to stop his former wife, a 36-year-old unemployed Swedish countess, from getting any temporary support to tide her over until the scheduled March divorce trial.

David didn’t have to write a new check. Instead, Superior Court Judge Stephen Frazzini approved the parties’ compromise allowing Marie Douglas-David to borrow $968,000 from existing prenuptial funds.

During arguments, it became apparent why she wanted the money. Her lawyers disclosed papers showing she was spending $53,000 a week in New York, Connecticut and Sweden, and had debts of $5.6 million including $2.8 million in notes to her husband and assets of only $4.4 million.

David is represented by former Appellate Judge Anne C. Dranginis and Carlo Forzani, who attempted to persuade the judge that, under a 2005 post-nuptial agreement, he should not have to pay his wife any more until the case is concluded. Already, they said he is paying $22,552 a week for Marie’s credit cards, cash, medical, travel, storage, domestic help and dry cleaning. He’s also spending $1,304 a week to care for her horse. She lists $1,570 a week in expenses for the horse.

Yacht expenses

As part of the proceedings, financial affidavits were unsealed showing David to be worth $290 million, with a weekly investment income of $187,592. His expenses totaled $190,000, including $95,943 a week to maintain his world-class racing yacht Rambler.

If the case doesn’t settle before the end of trial, the divorce will be one for the Connecticut law books with the dollar value roughly double the next-largest divorce case that was left for a judge to resolve, said Gaetano Ferro of Marvin Ferro & Barndollar.

In 2006, the former wife of Howard Sosin, founder of AI G Financial Services, collected $24 million from his $168 million fortune. When so much money is at stake, Ferro said the parties usually find a way to settle.

Ferro is a former president of the Academy of Matrimonial Lawyers who represented Jane Welch in her divorce from former General Electric CEO Jack Welch. He said there are no real guidelines when it comes to deciding what is fair in a divorce involving such mind boggling money.

“There are no rules of thumb when you’re talking about $300 million in assets,” said Ferro, who is involved in the David divorce. “If in small cases of $100,000 you start off at 50-50, that rule does not apply in a case of this magnitude.”

The 2005 post-nuptial agreement stated Douglas-David was to receive $43 million in the event of divorce. The couple were married in Greenwich, Conn., in 2002 and have no children, although the agreement records her desire to do so.

In a financial affidavit filed by DouglasDavid, she states she was a vice president at investment bank Lazard, and she and David agreed she should quit her job in 2003.

Meanwhile, David’s financial affidavit lists four residential properties. Most valuable is the $26 million apartment at 740 Park Ave. in New York, which has had $23 million in “improvements,” according to the affidavit. His Deercliff Road home in Avon, Conn., is recorded at $2.6 million, and a third residence in Stockholm is valued at $3.4 million.

David-David Post-nuptial agreement

Douglas-David apparently borrowed $1.6 million from David to buy a second Stockholm residence.

The post-nuptial agreement’s waiver of temporary alimony was challenged on a conflict of laws ground. The contract states it will be interpreted under New York law, but Connecticut conflict of law principles require a judge to favor Connecticut public policy.

Reasons for denial

There were many reasons for Frazzini not to deny Douglas-David’s application for ongoing expense money. Even if the post-nuptial contract is ultimately upheld as legally binding at trial, the judge is free to award money for lawyers, experts and living expenses as an interim equitable remedy.

Ferro noted many marital contracts are legally fragile.

“Prenups and post-nups can’t validly undermine a state statutory obligation to support your wife,” he said. “That’s why you can’t waive temporary alimony in a prenup, for example.”

Ferro is admittedly no fan of such agreements. The amount the husband sets “is typically regarded as the floor, so the wife can only go up from there if she contests it.”

Thomas B. Scheffey reports for the Connecticut Law Tribune, an Incisive Media affiliate of the Daily Business Review.

For a free consultation, please do not hesitate to call the experienced family law and divorce attorneys at Maya Murphy, P.C. in Westport, CT at 203-221-3100. We may also be reached for inquiries by email at JMaya@mayalaw.com.

Source: Lexis Legal News — Thomas B. Scheffey, Divorced from reality; In high-stakes marital splits, like the David divorce in Connecticut Involving $290 million in assets, new rules apply, LEGAL REVIEWPg. A13; Vol. 83; No. 143