Tuesday, September 25, 2007

And You Thought YOUR Divorce Was Expensive?

"Not all my clients did badly in their divorce settlements. Some of them even wound up with small fortunes. Of course, they started out with large fortunes".
(Monroe Inker, Boston divorce lawyer)

Monroe Inker, who died last year at age 80, was probably the most successful divorce lawyer of his generation. He represented famous people like Norman Mailer, Joan Kennedy, and Boston Celtics star Rober Parish, along with less-famous---but often wealthier---corporate CEO's, real estate moguls, trust fund heirs, or their spouses. I thought of his remark today when I read about a decision in a lurid divorce case I had been following for the past several months---a case that generated a total of over 13 million dollars in attorney fees and expert witness costs.

The case involved travel-industry magnate Peter Tauck (Tauck World Discovery) and his wife, Nancy, of Westport, Connecticut. Prior to the divorce case, Peter Tauck had a net worth of about 55 million dollars. But after 86 trial days (believed to be a world record in a divorce case), during which nearly 100 witnesses testified, about a quarter of his net worth was wiped out by the attorney fees and costs alone. And although the judge's 132-page decision is by any standard a "victory" for Peter Tauck (Nancy got shot down on virtually every issue she raised, including custody of the four children), he is still required to pay her $33,333 per month in alimony for six years, $20, 833 a month for two years after that, plus lump-sum payments over five years totalling twelve million dollars!

While I doubt that neither Mr. nor Mrs. Tauck will ever have to apply for food stamps, their case illustrates the futility and absurdity of "battling it out" in divorce court. Even the winner loses, big-time. And most lawyers, despite the fees they earn, feel that cases like this are harmful to the parties and their kids, and a waste of judicial time and resources. Peter Tauck's lead attorney, Tom Colin, said that the best part of the ruling was on page 132: the judge's signature. "It means it's over...This was the most intense, contentious case I've been involved in, without a doubt".

It's interesting to note that Monroe Inker, the Boston lawyer I mentioned, gave up his thriving divorce litigation practice while he was still healthy and active, and for the rest of his life devoted his professional efforts to divorce mediation. As I explain in my book, mediation puts the decision-making in the hands of the husband and wife. With the help of a skilled mediator, the process forces the couple to come up with solutions that make sense for them and for their children. It creates an atmosphere of co-operation and respect, and, incidentally, may save the couple a lot of money and anguish.

I'm not saying that mediation works in every divorce case---from what I've read, the Taucks were so hostile to each other that they couldn't be in the same room together without an armed guard present---but if the parties have any degree of rationality at all they should give it a try. It is entirely possible, the Tauck case notwithstanding, to divorce with dignity.