Saturday, September 17, 2016

Divorce in the land of the super rich


By  DANA KENNEDY

In a pretty principality, it can get ugly.


MONTE CARLO — The little courthouse resembling an ice cream cake perches high atop the Mediterranean just a few hundred yards from the royal palace. It looks like another Instagram-ready shot from the world’s most photogenic principality, a beautiful blur of pastel villas, chic beach clubs and gleaming, million-dollar yachts on a shimmering port.

But don’t be mistaken. It can get ugly at this pretty court which often handles big personalities with lots of money. Divorce laws in the principality are intended to protect the super-wealthy, ensuring that they don’t lose their assets in case of a split. And matrimonial laws do not favor women in Monte Carlo.


Let’s put it this way,” said Judd Burstein, a high-powered New York lawyer who is trying to move a current Monaco divorce case to New York. “If a rich man married a poor woman in Monaco and all she owned at the time of the marriage was a horse, she’d be left like Lady Godiva when the marriage ended. Naked with a horse. The guy would get everything.”

Monaco has no laws governing separation of assets, and the only wealth that is divided in a divorce is that which was commonly created. The advisory website Monaco Wealth Management says the laws are designed to keep out “gold diggers.”

Lainie Crane, an American woman in her 60s who’s lived in Monaco for more than 35 years, says wives still end up with the short end of the stick when they go to court.

““The women who marry these rich guys are not the brightest — they think their youth and beauty will last forever,” she said. “They don’t know to say, ‘hey honey-bunny can I have my own checking account or can you put my name on the deed?’ By the time the s*** hits the fan, it’s too late. They’re supposed to get half — but half of what? These guys keep a little something in HSBC. But the rest is in Turks and Caicos or Guernsey.”

As rough as divorce can be on women with ties to Monaco, it can be a challenge in other European countries where a wide variety of rules govern matrimonial break-ups.

Monaco lies just a few kilometers from Italy, where the process until recently could take up to ten years. For one thing, courts mandated a three-year separation period for “reflection and possible reconsideration” on mutual petitions. But that recently changed, possibly with “considerable socio-economic implications.” A leading Catholic daily reportedly bemoaned the changes under the headline: “Shortened divorce, an uncivilized goal.” Further south in Malta, it wasn’t even possible to get a divorce until five years ago and the country still has some of the most restrictive laws in Europe.

The EU’s Brussels II convention was meant to harmonize divorce laws so that a divorce filed in one country would be accepted in another. But the 2001 convention, which holds that the first court to process the divorce is the one to hold jurisdiction, may have had the unintended effect of highlighting differences between countries, leading to ‘divorce tourism’ with couples filing in countries with quicker, cheaper or more generous terms for divorce.

For example, if you head to Romania, divorce is cheap and quick, and lawyers have found a way around the provision that one needs to be a resident. Romanian courts also recognize de facto separation, so divorce proceedings are fairly straightforward if the couple can convince the court that the spouses have already been living separately for six months.

Bucharest, however, can’t top London, which is known as the divorce capital of the world. An investigation by the Times a few years ago found that, when huge sums of money were at stake, around half of divorce cases involved international couples. While getting divorced in the U.K. is both expensive and arduous, it is generally preferred by financially weaker spouses who may gain more there than elsewhere. British courts often award former spouses, particularly wives, with maintenance for life. Family law firm Pannone describe British laws as too “wife-friendly.”

Which is why some British women who find themselves living in Monaco with their husbands try to find a way to get back to the U.K. if a divorce is in the offing.

Camilla, a 41-year-old British national, lived in Monaco with her British banker husband and their three children. When Camilla discovered that her husband was having an affair, she knew she wanted to file for divorce — but not in Monaco.

“I told him the kids were unhappy at their school in Monaco and that we should move back to the U.K.,” said Camilla, who spoke on condition that her last name not be used. “He believed me, so we packed up and moved back.”

Within six months, Camilla had filed for divorce in London, getting a better deal than would have been possible in Monaco where divorce law dictates that all the deeds and bank accounts remain with the person whose name they were under before marriage. Courts are known to be stingy with alimony, believing in the individual’s capacity to “bounce back.”

“Justice belongs to the spouse with the most money here,” said Elisabetta Agusta, a 66-year-old Austrian national who was married to a wealthy Italian count. Her divorce, she said, took 17 years to wend through the courts in Monaco and Milan, and when it was over, she was left with almost nothing. “The men just think, ‘how do I get rid of my wife without giving her any money.’ If you’re naïve as I was, God help you.”

Last fall, Maurice Amon, 65, heir to a multi-million dollar Swiss banknote ink fortune, filed for divorce from Tracey Hejailan-Amon in Monaco where the couple owns a $40 million home. In response, his wife hired Burstein, who represented Donald Trump in his divorce from Ivana in 1992, in a bid to move divorce proceedings to New York.

Hejailan-Amon, then 39, had met Amon at a New Year’s Eve party in Gstaad, not long after her marriage had ended. The couple were eventually married in Hong Kong and reportedly maintained homes in London, Paris, Gstaad, Monaco, and New York during their eight-year marriage.

“I wasn’t seeking out a bank account when I married Maurice,” said Hejailan-Amon, adding that she was devastated when her husband sent her an email in October worded like a business transaction, informing her that he had just filed for divorce in Monaco. The email came after Amon had quietly taken $25 million in artwork from the couple’s Fifth Avenue apartment, which he had placed in her name, Burstein said.

It’s not the first contentious divorce for either. Hejailan-Amon, who is originally from California, was previously married to a Saudi businessman and fought a five-year battle to get her two children out of the Kingdom.

Amon, for his part, graced the pages of the New York tabloids in 2005 under headlines such as “DIVORCE OF HEADSPLITTING NASTINESS” when he separated from his former wife Roberta. The couple had split their time between Switzerland and the U.S. and Roberta, like Hejailan-Amon, fought to have the divorce heard in Manhattan.

Amon’s lawyer, Peter Bronstein, who also represented his client during his divorce from his previous wife, has called Hejailan-Amon a “gold-digger” who can’t show she’s lived in New York for the required two years needed to start a divorce action there. Photos of her overflowing shoe closet in Monaco were splashed all over the media after Bronstein filed the pictures in court to show she maintained her residence there.

Burstein, though, says he can prove the Amons spent a lot of time in New York and that Amon’s claim of being a resident of Monaco was just a way to evade taxes.

Though a Monaco law introduced in 2007 was meant to even the playing field among couples, there are still laws on the books that allow a spouse to take back any gifts or “donations” made during the marriage — like the estimated $70 million in jewelry Maurice gave his wife.

A New York judge has said he will rule on whether or not Hejailan-Amon can move her divorce case to Manhattan this month.


“We built a life together,” says Hejailan-Amon. “My two kids loved him and I thought he loved them. Maurice didn’t want me to work but I contributed to the marriage. I decorated our homes,” she said. “I’m not a gold digger and I married Maurice for love.”

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