Deborah Madoff's Divorce Settlement

I’ve been thinking about Debbie Madoff’s divorce settlement since I read yesterday in the Post that “according to an insider Debbie Madoff didn’t move fast enough with her divorce and whatever she negotiates in the divorce settlement she won’t be able to collect.”
I don’t understand where they are getting this bit of info. Because, unless Andrew Madoff is accused of wrong doing and unless the feds freeze his assets, Deb’s divorce settlement should be unaffected. As far as I can tell, the Feds have not yet been able to pin this Ponzi scheme on Andrew and his brother Mark. To be honest if that changes I wouldn’t exactly be surprised, but so far, the boys have been keeping outside the fray and believe me, if the Feds had a basis to pin this on them, they would have.
That leads me to think that maybe they are clean, or at least, they have the appearance of cleanliness. In which case, what is the New York Post talking about that Deborah would be treated like any other creditor? Is Andrew Madoff in bankruptcy proceedings? Did I miss the big news? I mean, if Andrew is in bankruptcy – whether a chapter 13 or a chapter 11, then I can see what they mean that Deborah would be treated like any other creditor. But if the man is not in bankruptcy proceedings, I don’t know what the Post is talking about here: http://www.nypost.com/seven/02022009/gossip/pagesix/im_not_madoff_153188.htm
What are they talking about? Look, if the assets are not frozen (meaning Andrew’s assets) and he’s not in bankruptcy proceedings, and he has not been accused or charged with wrongdoing, then Andrew’s assets have nothing to do with his father’s legal troubles. That means that what ever was accumulated or obtained during that marriage is marital property and is subject to equitable distribution pursuant to New York law. Equitable distribution, as I’ve said ad nauseum, does not mean that Deborah will get 50% of whatever they own. But she will get what the court deems to be “fair” assuming there is no prenuptial agreement.
What could Deborah expect to get? Well, she surely got an engagement ring and a wedding band. And I’m sure she didn’t buy it at Zales. Not that there is anything inherently wrong with an engagement ring from Zales (there is a backstory here with this Zales angle but I am not going to get into it right now. Let’s just say Zales and I go way back.) I just don’t think Deb would have gotten her ring from there and I think it would cost north of, say, $10K. So she gets to keep that pursuant to New York Law. Although, read here: http://www.divorcesaloon.com/index.php?s=%22engagement+ring%22
As far as the other jewelry he bought her during the marriage? It is marital property and so they will split the value of it. Read here: http://www.divorcesaloon.com/index.php?s=jewelry
What else? She probably drives. She is no Samantha on Sex and the City. She has a driver’s license and she drives and I would bet you money they had at least two cars. So she will likely get a car out of this deal.
If they had kids, she is getting custody. This is my hunch. (If she wants it.) But if she doesn’t want custody, read here: http://www.divorcesaloon.com/when-mom-doesnt-want-custody
Real Estate: I don’t know where they vacation but I know they like to fish a lot cause all the pictures of them on the Internet are with Andrew and his brother holding a fish – slightly bizarre. But, so, she will probably get the house in the country cause I bet you money she wants out of NYC. Andrew can keep the New York Upper East Side apartment. She probably will want zero to do with it.
How much cash and cash equivalents do they have at this point? Millions, I bet. How are they going to divvy this up? Hme…He’ll give her 45% of it.
Artwork: I am sure they have at least one genuine Picasso and a few other pieces of note. They strike me as a more modern couple, though. I think they would be more into MOMA and that type of art, which is still quite valuable. So she would get a piece of whatever the overall value of the art is. Cause I’m sure they have artwork in their various homes. 
Securities (including stock options, bonds, futures, gold etc) and the value of their business: Does anybody have any value left in their portfolios at this point? I mean, Andrew and Mark were running their own fund I think I heard. But the value of it must have tanked. Who will invest with them now that their father’s legal woes have become so notorious? There is an inescapable taint here and I think Andrew and Mark will be linked to their father in many people’s minds, fairly or unfairly. That means that Abel Holdings and their other companies are in trouble and won’t hold their value. So, about getting a cut of the business? Deb may waive that. She may tell him, you know what? That’s yours. You can keep that. But if they have gold and futures or other securities with current value, she may want to negotiate to get a piece of that.
What else? Um, let’s see…well, I am sure there are debts. Debbie will probably negotiate to have Andrew pay off any outstanding marital and personal debt she owes. And he is likely to do it to make her go away quietly. 
Taxes: Andrew will have to factor the capital gains taxes into all transactions and property transfers.
Oh, but don’t forget the tell all book. If Andrew is smart he will make that a part of the settlement. Deb should not allowed to write a tell all book about this situation. Cause right there, you are looking at about $30 million if Debbie plays her cards right.