late divorce payment costs ceo $750000 in interest - JD Supra

LATE DIVORCE PAYMENT COSTS CEO $750,000 IN INTEREST For many Illinois couples who are going through a divorce, dividing marital assets may be one of the most complicated tasks, especially in a high asset divorce case. Each spouse must carefully consider how the division of marital property will affect their current and future financial situations, but they should also make sure that they fully understand the terms of their agreement before signing a settlement. A state Supreme Court has ruled that the CEO of Credit Suisse Group AG owes his former wife over $750,000 in interest for a $7.5 million divorce payment that he made 12 days late. The couple’s divorce settlement stipulates that the CEO would pay his ex-wife interest at an annual rate of 10 percent if he was late with the $7.5 million payment, which was due in June of 2006. While the CEO was late, he paid her an additional $25,000 for the 12 days’ worth of interest. However, the ex-wife’s attorney claimed the man owed his ex more. The CEO contested that this sum should be sufficient and that he should not be charged interest more than the 12 days in which he was delinquent. The state Supreme Court justices disagreed, however, unanimously ruling that the man pay his ex at the rate determined in the divorce settlement. One justice explained that the CEO is “financially sophisticated” and should have been fully aware of the terms to which he had agreed upon when he signed the settlement. The ex-wife’s attorney also asserted that the CEO should be obligated to pay an additional 10 percent annual interest over the last five years on the $750,000 penalty on which he was delinquent. If the court rules again in his former wife’s favor, the CEO would face a total fee of around $1.1 million. Whether he will be forced to pay this sum is expected to be resolved at a future hearing. The man and his wife signed the divorce settlement in June 2005. The CEO was worth nearly $80 million and had agreed to pay his wife $15.3 million in two installments. His exwife also received the couple’s home which was valued at $9.6 million at the time as well as a 2000 BMW vehicle. https://fldivorce.net