Billionaire divorce dilemma: Dividing a $150 million home

Billionaire divorce dilemma: Dividing a $150 million home

When married couples split up, the big question is often about who gets what. Ordinarily, cutting up the conjugal pie can be a complex and emotionally charged process. But if the home in question is a mega-mansion with a private gym, a soundproofed bowling alley, and more bedrooms than a luxury hotel, the stakes are a little higher. That’s exactly the position that billionaire Tony Pritzker and philanthropist Jeanne Pritzker find themselves in — trying to figure out how to slice up a $150 million mansion without slicing up each other.

Splitting a mega-mansion: When a mansion becomes a battlefield

We’ve seen our fair share of high-stakes asset splits in the billionaire world; think Jeff Bezos and his empire-shaking divorce. When ultra-wealthy couples decide to part ways, divvying up assets usually involves more than just deciding who keeps the family photo albums. There’s often a lavish estate (or several) in the mix, which can make things tricky.

After over three decades of marriage, Tony and Jeanne Pritzker called it quits in 2022. But like many wealthy breakups, it’s not just a matter of signing on the dotted line. Jeanne hoped to continue living in the couple's opulent Angelo Drive estate, complete with a bowling alley, gym, and an infinity pool. Tony, however, wanted to sell the property. And so, the question of who gets what has turned into a game of mansion Monopoly, where the prize is a house worth more than most people can even dream of.

A modest slice of luxury

The Pritzkers’ little marital abode is a sprawling six-acre estate in the oh-so-humble Beverly Hills Post Office area, barely a mile from Jeff Bezos’ place. Perched on a promontory, this mansion doesn’t just overlook the city; it practically sneers at it, offering 180-degree views of downtown LA and the Pacific Ocean.

Clad in imported white Italian limestone (because regular stone just wouldn’t do), this gated paradise sprawls across a cozy 50,000 square feet, featuring 16 bedrooms, 27 bathrooms, and 18 fireplaces. Because when you’re a billionaire, why not have more fireplaces than you can light in a lifetime? The primary suite is just a casual retreat with his and hers bathrooms, closets, indoor and outdoor fireplaces, a hairdressing area, a custom pop-up TV, and a balcony for pondering life’s toughest decisions, like whether to buy another yacht.

Downstairs is where things get really interesting. There’s a flower-prep room because every mansion needs a space dedicated to arranging peonies. And have we mentioned the soundproofed bowling alley? It comes complete with custom cabinetry for the bowling balls and shoes. And for those who think cooking means dialing a chef, the kitchen is equipped with three Gaggenau ovens, two stainless-steel sinks, and a dumbwaiter.

When it comes to dividing an estate this extravagant, it’s far from straightforward. Splitting up a home that feels more like a private resort — along with everything inside it — goes well beyond a simple game of calling dibs.

Trust issues: Turns out, the house isn’t theirs, not even the silverware

Jeanne’s legal team came in swinging, ready to argue her right to stay in the house she had called home. But as it turns out, the Pritzkers didn’t technically own the home, or anything in it. Not even the fancy cutlery. Legally speaking, the entire estate belonged to a tangled web of trusts. And guess who wasn’t a beneficiary of those trusts? That’s right: Jeanne.

For those uninitiated in the world of trusts, here’s the gist: a trust is a clever little arrangement where a third party holds onto assets “for the benefit” of someone else. It’s a great way to keep Uncle Sam at bay and keep prying eyes out of your business. But it’s also a handy way to make sure that when your marriage falls apart, your soon-to-be ex can’t just waltz off with your limestone-clad mansion. In this case, the trust structure meant Jeanne wasn’t entitled to live in the house anymore.

And Jeanne’s not alone in this. A growing number of wealthy spouses are learning the hard way that the assets they thought they had a claim to are actually neatly tucked away in trusts, shielded from the messiness of divorce court. It’s a popular move among the ultra-rich, ostensibly to protect privacy and reduce taxes. But let’s be honest, it’s also a great way to make sure one party keeps their grip on the gold-plated reins when the love story ends.

House divided? Call LaGrandeur & Williams for asset disputes

At the end of the day, Jeanne will land on her feet, just maybe not in the house with the bowling alley. If you’re in the middle of your own asset tug-of-war, don’t leave it up to chance. Reach out to LaGrandeur & Williams, trusted counsels in family law, asset division, and settling disputes over more than just who gets the guest room. We’ll help you navigate it all.