McCourt Divorce: Liquidating a Community Asset to Maintain the Status Quo

It is not uncommon for the court to order a liquidation of a community property asset and provide said funds to the supported spouse or apportion it between the parties. Many times a hearing to determine how much support one party pays to the other could be delayed until the forensic accountant finalizes the cash flow report available for support, among other reasons.

As an example, it was reported today that Jamie McCourt will receive $1.4 million to cover her expenses until next month’s hearing on spousal support. The $1.4 million comes from the liquidation of an investment account in the names of Frank and Jamie McCourt. The agreement also provides Jamie McCourt with access to additional funds — in an unspecified amount — from the couple’s joint investments.

When Frank and Jamie McCourt filed for divorce in October, she asked for $320,967 per month if she were reinstated as the Dodgers’ chief executive officer and $487,634 per month if she were not. The court denied her request for immediate reinstatement.

The court has scheduled a hearing on spousal support March 29-30. Jamie McCourt agreed not to make another bid for reinstatement at that time but reserved the right to do so in the future, according to court documents.

The spousal support ruling that follows the March hearing will be temporary. The McCourts have agreed to settle the issue of who owns the Dodgers first — a trial is set to start May 24 — and resolve the other issues in their divorce at a later date. That means a permanent resolution of the spousal support issue could be months, if not years away.

Frank McCourt claims he is the sole owner of the Dodgers, citing a marital property agreement signed by each of the McCourts. Jamie McCourt claims she is a co-owner and has asked the court to rule that the agreement is invalid.

Contact an Orange County divorce attorney for any spousal support related issues you may have.

Source: Los Angeles Times, Jamie McCourt gets $1.4 Million, for now