Bezos divorce will cover Amazon's billions but could be simple


  • TECH
  • Monday, 14 Jan 2019

Amazon CEO Jeff Bezos and his wife MacKenzie Bezos arrive for the Axel Springer award ceremony on April 24, 2018. On Jan. 9, 2019, it was announced that Bezos and his wife will divorce after 25 years. (Jorge Carstensen/DPA/Zuma Press/TNS)

The high-stakes divorce of Jeff and MacKenzie Bezos will involve unimaginable sums of money but the case may be easier to negotiate than with regular earners, simply because they are so rich. 

“Their divorce will be handled as quickly as an Amazon delivery,” said West Coast-based attorney Christopher Melcher. 

There is no minimising the trauma of splitting up, even with adult children and ample financial security. Yet divorce lawyers say when very large amounts of money are involved, there’s simply more gauze for the wounds. 

Jeff Bezos, the founder of Amazon.com Inc, has a net worth of US$137bil (RM561.15bil), according to the Bloomberg Billionaires Index. The couple intends to part “as friends”, and MacKenzie may well become the world’s richest woman. 

Sergey Brin, a Google founder worth over US$50bil (RM204.80bil), and his wife, Anne Wojcicki, herself a major figure in Silicon Valley, sought to keep their parting amicable over the last few years. They have appeared in public together and continue raising their two children jointly. 

Job done 

When Harold Hamm, the oil and gas executive, and his wife, Sue Ann divorced in 2014, he wrote a check for an estimated US$975mil (RM3.99bil), about 5% of his worth. The check, he said at the time, “got the job done” after years of bitterness. 

It sounds obvious, but experts note that, with more wealth, each dollar means less – and that can turn down the emotional thermometer, at least in public. 

“They became extraordinarily wealthy because they were smart,” said Michael Stutman, a prominent divorce lawyer. “And smart people do not spend money on lawyers fighting over the emotional landscape. They spend their money doing what they can to maximise their post-divorce net worth.” 

He added, though: “Sometimes an expensive dispute can’t be avoided.” 

Dodgers pain 

Take the example of Frank and Jamie McCourt, the former Los Angeles Dodgers owners. 

They moved to LA in 2014, spending millions on homes and pools, reportedly even US$10,000 (RM40,960) a month on hairstyling. Five years later they were trading charges, including infidelity, insubordination (he fired her as the team’s CEO) and other transgressions. He paid her US$130mil (RM532.48mil) as part of their divorce in 2009, as the team went into bankruptcy and was later resold. 

“They dragged the team through their personal battle,” said Melcher, of Walzer Melcher in Los Angeles. 

Divorces of the very rich can also become complicated when they cover several jurisdictions, philanthropies, money stashed off-shore and high-end assets like art. 

The divorce between Russia’s Dmitry Rybolovlev and his wife Elena unfolded over six jurisdictions and resulted in years of acrimony. In 2014, a Swiss judge awarded her US$4.8bil (RM19.66bil), though they next year settled for reportedly less than that – though still a considerable sum. 

Randy Kessler, an Atlanta-based divorce lawyer, gave one further caveat. If the lawyers involved in the Bezos case make even the smallest mistake, it could cost a billion dollars. 

“It would scare me,” he said. – Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Tech News

ByteDance names new global head of R&D at TikTok - sources
Lyft focuses on aged citizens with feature to book rides by call
India plans new social media controls after Twitter face-off
Apple supplier Foxconn teams up with Fisker to make electric vehicles
MAF: Syndicates now resorting to drones for criminal activities
Singapore trials Smartphone app offering mini check-ups
Facebook to invest $1 billion in news industry after Australia row
Malaysian parents cite concerns as online scammers target children during pandemic
Biden rushes to address global computer chip shortage via latest executive order
US-China tech war: Tech vlogger’s interview with Apple CEO Tim Cook goes viral amid thawing tensions

Stories You'll Enjoy


Vouchers