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One of the world’s richest and most influential men is getting divorced. In the process, he may make history by possibly paying the highest property distribution in a divorce in history. Harold Hamm is an oil baron who has a net worth of about 11.3 billion. Nevertheless, property division considerations in Michigan and elsewhere generally follow common themes that are universally applicable.
The divorce was filed by Hamm’s wife, Sue Ann Hamm, on May 19, 2012. Although the documents are sealed, she is reportedly complaining that he was unfaithful. She is a former executive in Continental Resources, an American oil company that her husband runs and largely controls.
She filed the action in Oklahoma where they have a main residence. Harold Hamm was at the forefront of an oil boom in the U.S. in the 1990s. He developed a major American oilfield that still produces hundreds of thousands of barrels a day.
Speculation abounds that the division of marital property here will exceed the record held by Rupert Murdoch, who paid $1.7 billion for a divorce. Property division is based on a fair division of the marital property, consisting of all assets acquired by either party during the marital period. In this case the wife, an economist and lawyer, is aided by the fact that she was active in helping to build the company.
However, it’s not clear if there was a prenuptial agreement, which is the most effective way for a wealthier spouse to limit the property received by the other in a divorce. A prenuptial is a contract signed by the parties prior to the marriage setting forth what each party will receive if the marriage sours. It’s usually urged by the wealthier party on the other in order to prevent dissipation of assets if there’s a divorce.
In Michigan, property division is a central aspect of a divorce. Without a prenuptial, there are several factors that are applied to determine an appropriate division of assets. In most cases, the parties will agree to a division that is incorporated into the divorce. With any significant assets in contention, however, a party will want to have professional assistance in presenting all of the pertinent factors as strongly and accurately as possible in the negotiations.
Source: globalpost.com, “Billionaire oil tycoon Harold Hamm headed for the most expensive divorce in history with his second wife Sue Ann Hamm,” Ellen Connolly, March 22, 2013