Divorce Ruling Sends Statement Wife, Who Didn’t Work, Will Get Half Of Wealthy Exec’s Assets
In a closely watched divorce case, a Connecticut judge said loud and clear Wednesday that the wife of a wealthy corporate executive should get one-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 a 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.
“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?
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, who appeared in court, said in an interview late Wednesday that she is happy with the decision. “It appears that the judge has indeed determined that marriage is an equal partnership,” she said.
She rejected an offer of an $11 million settlement, and said she did not take her now ex-husband to court for money but for the principle. “The press claims this is a case about a corporate wife. It’s really about how one person in a marriage treats the other,” she said. “I stood up and said, ‘I’ve been in this marriage for 32 years. This isn’t fair.’ “
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. What she will get includes 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.
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 she wasn’t interested in his problems, leaving him very lonely in the marriage.