Wednesday 28 May 2014

The world's largest property settlement?

Ah, those Russians.

If you saw the news last week you may have seen a story or two about this case.

Dmitry Rybolovlev and Elena Rybolovlev's property settlement has been finalised by a Swiss Court - and the sums involved are staggering.

According to the media reports Mr and Mrs Rybolovlev met as university students in Perm, Russia and married in 1987. Mr Rybolovlev trained as a doctor but made his fortune by developing the potash company Uralkali and transforming it into one of the world's biggest fertiliser producers. Mr Rybolovlev sold his controlling interest in Uralkali for a reported $6,500,000,000.

The couple separated in 2008 and have been contesting their property division in the Swiss courts ever since.

While the Court earlier froze their assets, apparently the proceedings did not stifle Mr Rybolovlev's spending/investing. According to media reports trusts in the name of their eldest daughter, Ekaterina, have purchased items including a 66% share in the Monaco Football Club (which last year spent £146,000,000 on player signings), Skorpios - the private Greek island previously owned by Aristotle Onassis - for $150,000,000, Donald Trump's former mansion in Palm Beach and an US$88,000,000 penthouse apartment in New York. Mr Rybolovlev also apparently has a 9.7% stake in the Bank of Cyprus and lived in a $300,000,000 penthouse in Monaco.

The Court ordered that Mrs Rybolevlev receive $4,500,000,000 - almost half of the couples net worth. The ruling includes ownership of two homes in Cologny, Geneva, a property in Gstaad, and items of art, antique furniture and jewellery.

While Mrs Rybolovlev's lawyer said that the result was "a complete victory" apparently there may be a problem getting the cash portion of the judgement as much of the couple's assets were transferred to Cyprus in 2005 and there are questions surrounding the Swiss Courts ability to order the transfer of funds. 

Indications are that the decision is going to be appealed by Mr Rybolovlev.

Whether it's the largest property settlement or not is debatable - so many property settlements are by their nature private matters not reported on in the media. But this one has to be right up there towards the top.

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