A post in this blog last December discussed the then-pending divorce case of former Denver Nuggets star Allen Iverson and his estranged wife, Tawanna. At that time, Iverson was claiming in court filings that he was broke. Recently, news reports indicated that the high profile couple has reached an out-of-court settlement and finalized their divorce.
According to the news reports, Iverson has agreed to make a $3 million lump sum payment to his ex-wife. In addition, he has agreed to pay her a share of his Reebok endorsement income, and to pay child support for the couple's five children.
The high profile couple's divorce has been a bitter one. Tawanna has accused Iverson of cheating on her and concealing assets. The two were high school sweethearts and married in 2001. Tawanna first filed for divorce in 2010. She did not follow through with that proceeding, but she filed again in 2011.
When a wealthy couple splits up, asset division can be a complicated and contentious process. In Colorado, courts divide both marital property on an equitable basis. Equitable does not necessarily mean equal; the court attempts to make a division that is just and fair to both parties in light of their circumstances. Marital property is everything the couple acquired during the marriage. Separate property, which is what each spouse brought to the marriage or acquired through inheritance or as gifts, remains separate, but any appreciation in its value during the marriage is considered marital property. Debts are also divided equitably, which can further complicate matters. An experienced family law attorney who understands asset valuation issues can guide a spouse through this difficult process.
Source: Huffington Post, "Allen Iverson Divorce: Former NBA Player And Tawanna Iverson Reach Settlement (REPORT)," Jan. 22, 2013