Business

Court Orders Equitable Distribution of Assets for Unmarried Couple

What happens when an unmarried couple who have worked together, lived together and raised children together go their separate ways? This was the issue presented in a case that Jon Friedmann and Sean Cullen recently tried on behalf of one of RF’s clients.

The firm’s client, a male entrepreneur, who had immigrated from Egypt, met a female Russian entrepreneur who had undertaken a career in acting, modeling and ultimately in the beauty industry.

The parties lived together for nearly four years before their relationship blew apart. At the time of trial RF’s client, the plaintiff, claimed that the parties had had a joint venture/partnership – both business and personal – and that he should be entitled to recover the reasonable value of the damages he suffered by having to give up his interest in the businesses and real property that had been acquired during the four-year relationship. The other side denied that the firm’s client was entitled to anything and claimed physical and mental abuse.

Jon and Sean argued successfully that RF’s client was entitled to “fundamental fairness” with an equitable distribution of assets acquired and/or improved during the relationship though not owned outright by both parties. They argued that like a divorce situation equitable distribution and fundamental fairness needed to be provided.

The defense brought claims seeking damages for assault and battery and infliction of emotional distress. The assault and battery had already been established by criminal conviction.

RF’s client was awarded a six-figure amount to compensate him for the unjust enrichment the other party would have obtained but for the firm’s efforts.

As Jon argued in the closing argument to this case, it doesn’t matter what legal title or label you give, whether it is breach of contract, unjust enrichment, misrepresentation or recission, the firm’s client was entitled fundamentally to fairness and to be able to receive the benefits of the work that he performed.  Neither party entered into this arrangement expecting it to end. But, when a relationship between a man and a woman or same sex partners occurs and the relation has not been solemnized by or recognized by the state and divorce is not an available remedy, then the courts are the forum to make the determination of what a fair and reasonable disposition of the assets should be.

Jon and Sean were able to get such a fair and equitable distribution to the firm’s client notwithstanding the other side’s claims of abuse, assault and battery.

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