The Seattle Times , Dec. 5, 1997 Executive's wife awarded half of all assets ,
also known in some circles as
" getting the shaft ",
TA
seattletimes.nwsource.com
Executive's wife awarded half of all assets
by Sharon Walsh and Devon Spurgeon
Washington Post
STAMFORD, Conn. - In a closely watched divorce case, a
Connecticut judge said loud and clear that the wife of a
wealthy corporate executive should get half of the assets
accumulated during the marriage - whether or not she worked
outside the home.
GE Capital Services Chairman Gary Wendt and his high-school
sweetheart and wife of the past 32 years, Lorna Jorgenson
Wendt, were dividing a marital estate worth as much as $100
million.
It was not just the amount of money and property involved
that made the case unique - there have been other divorces
involving more money.
But this divorce became the central exhibit in the debate over both legal
and social questions: What is a wife worth? What is the value of her contribution to the
marriage, especially if she does not work outside the home?
"It's very clear . . . this judge said by the way he
divided the assets, `I view this as a full partnership,' "
said Sanford Ain, a prominent Washington divorce
lawyer. "It's a very important statement."
Connecticut, like the majority of states, is known as
an "equitable-distribution" state in divorce cases, giving
judges wide latitude on what they award.
Even in the half-dozen or so states that have community-
property laws, the property is not always divided equally,
though Lorna Wendt would have had a better shot at half in those states.
"Enough is enough"
"There's been a discussion among lawyers in recent years
that judges tend to award the economically dependent spouse
of a very wealthy couple a small percentage of the total
assets," said Ain.
The concept is known as the "enough-is-enough" standard
because judges think a spouse, usually the woman, who is
getting millions in a divorce settlement has more than
enough to maintain her lifestyle, so why should she get
half?
"Judges in other states will look at this closely," he
said.
Gary Wendt had argued that he did offer his ex-wife half of
his estate, although he did not include the value of
certain future compensation because he would not collect
the cash until after his divorce.
Often, the bulk of the multimillion-dollar pay packages
awarded to top executives these days are in the form of
such deferred compensation.
Lorna Wendt rejected an offer of an $11 million
settlement early on, and said she did not take her now
ex-husband to court for money but for the principle.
"I stood up and said, `I've been in this marriage for 32
years. This isn't fair,' " she said.
A representative for Gary Wendt said he was in a helicopter
en route to deliver a speech to a business group in New
Jersey when Judge Kevin Tierney handed down his 465-page
decision Wednesday.
In a prepared statement, Gary Wendt said he intended to
examine the verdict closely before making any public
statement.
"The principal issue in this case was not the relative
contribution of the non-working spouse vs. the working
spouse, but rather the division of future earnings after
the non-working spouse has been generously rewarded," his
statement said.
Lorna Wendt did not get everything she asked for. She will
get a multimillion-dollar house in Stamford and a house in
Key Largo, Fla.; $252,000 a year, payable in equal monthly
installments of $21,000; half of all stocks, bonds, cash
and mutual funds in 19 accounts; and memberships in the
Ocean Reef Club in Key Largo and the Stanwich Club in
Greenwich.
Sought stocks, bonuses
But, in addition to half of everything accumulated by the
Wendts during their marriage, Lorna Wendt wanted half of the
stock options, bonuses and unvested pension benefits
that Gary Wendt will receive when he retires from GE in 10
years.
Her attorneys said she will essentially get that in a
tax-free payment of $2 million ordered by the judge,
as well as the payoff of the $1 million mortgage on the
Stamford house by her former husband.
This is one of the few divorce cases of a wealthy couple
that has actually gone to trial. Most of the super rich
settle outside of court.
In the 18-day trial one year ago, Lorna Wendt testified
that her contributions to the marriage were as valuable as the
paycheck her husband brought home, and that while she
ran the household and raised the Wendts' two daughters,
she also worked side by side with her husband as an adviser,
business hostess, traveling partner and
representative to various charitable and community groups.
Gary Wendt denied his wife contributed to his success,
saying in court that she had no interest in business and
wasn't interested in his problems, leaving him very lonely
in the marriage.
Each Wendt hired a public-relations representative.
The Tierney's chambers have been inundated with calls from
the media for months.
Lorna Wendt has started a Web site -
www.equalityinmarriage.com, named for the Foundation for
Equality in Marriage that she is starting with some of her
assets.
When they married just after both graduated from the
University of Wisconsin, the Wendts had $2,500 between
them, according to Lorna Wendt's representative. |
