The Huffington Post reports that Eddie Murphy's ex-wife has blown through her $15 million divorce settlement in four years and is now broke and racking up thousands of dollars in debts.
If true, this case illustrates the importance of making sure your Los Angeles divorce lawyer cuts all financial ties between you and your soon-to-be-ex spouse. While an extreme example, the allegations in this case illustrate that no amount of money will guarantee a buffer between you and your ex's finances if you remain on home loans, car loans, credit cards, joint bank accounts or other common financial instruments. Too often, couples think that because they can come to an agreement on property division -- or because there is little to divide -- there is no need for legal help. Property division in a Los Angeles divorce can be as much about playing defense and removing yourself from future obligation, as it is about winning assets.
The Examiner reports Nicole Mitchell Murphy received the $15 million settlement as a result of the end of the couple's 12-year marriage in 2006. She reportedly opted to receive the money in one lump sum rather than receiving monthly installments.
She now reportedly owes the IRS $846,000. And a law firm $600,000. As well as $60,000 in landscaping bills and $5 million on her Los Angeles home.
The couple have five children together.
Los Angeles Divorce Attorney Mitchell A. Jacobs has dedicated his career to representing clients in all divorce, child custody and family law matters. He has been a Board Certified Family Law Specialist since 1986, a distinction obtained by fewer than 1 in 200 California attorneys. Call (310) 472-7979 to discuss your rights.
