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Bank executive owes 750000 for late divorce payment

A chief executive at a high-ranking bank has just been hit hard by a personal oversight in his divorce settlement.

The Connecticut Supreme Court ruled that the man now owes his ex-wife another $750,000 on top of the $15.3 million that the settlement already calls for. The former couple’s divorce, which was made official in 2005, is costing the man quite a large sum.

Paid in two installments, his ex-wife had already received more than $7.5 million when he was late on an installment of the divorce settlement. His payment was due in 2006 and he has been fighting in court ever since.

The final payment to his wife was 12 days late. According to the way that their settlement was worded, the man was to be charged interest on any late payment. Instead of being charged only for 12 days, however, the divorce settlement called for him to be charged interest from the date that the settlement was reached. Faced with an additional payment of $750,000, the high-ranking banker appealed the case and argued that he only owed interest for the 12 days that he was late, a comparably measly $25,000. The court did not decide in his favor.

Having attended University of Chicago and holding a top position in the banking industry, the courts did not show much sympathy for the man, whom they called a “financially sophisticated” individual. In 2010, he made more than $14 million. When the couple was divorced, he was making more than $375,000 per week. The ex-wife also received a car and house worth nearly $10 million in the divorce.

Source: dealbook.nytimes.com, “Credit Suisse Chief Penalized $750,000 in Divorce Case,” Kevin Roose, 27 June 2011

Tags: Connecticut Supreme Court, division of assets, divorce, divorce settlement, family law

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