How the Rich Shield Assets

Major League Baseball fans might be aware that the ownership of the Los Angeles Dodgers is at stake in the divorce proceedings between Frank and Jamie McCourt. The court filings have included many salacious details: Jamie’s alleged affair with her driver, the Dodgers’ use of a Russian psychologist who used his mental focus to somehow will the team to victory, Frank’s plans to severely cut the team’s payroll, and the couple’s extravagant lifestyle.
This morning, the Wall Street Journal examines the McCourts’ asset protection strategy. Here is the link: http://bit.ly/dcb49b
Jamie alleges that she owns a portion of the Dodgers despite signing a post-nuptial agreement stating that the team was the sole property of her husband. You may ask, why would a former divorce attorney with an M.B.A. give up her rights to the couple’s most valuable asset?
Frank McCourt’s attorneys explain that Jamie wanted the agreement to shield the couple’s numerous, luxurious vacation homes, held in her name, from creditors. The McCourts borrowed $125 million to purchase the Dodgers and then used cash from the team’s earnings to buy homes that are safe from their creditors.
The article provides links to several stories of wealthy couples who place assets in the name of a spouse for asset protection purposes.