While in the midst of an acrimonious divorce in Brazil, the Client’s estranged spouse files a series of proprietary claims against assets of certain BVI and Florida limited liability companies in connection with the ongoing divorce proceedings. The spouse also files temporary restraining order against the Client.

The case team proposed a novel liquidation strategy in BVI involving filing a proceeding to liquidate the Client’s BVI company and have an independent liquidator “hold the ring” pending the division of matrimonial assets. The team argued that the end of the marriage would also mean the end of the company – thus meriting liquidation - upon which the liquidator would ultimately distribute the assets of the company between the Client and his ex-spouse in either following the ruling of the Brazilian divorce court, or BVI law. The Client ultimately passed on this strategy, opting instead to focus on his Miami-based assets.

The case team appeared in Florida state court to protect the Client’s Miami assets and dismiss the temporary restraining order filed by his spouse. The case team was able to successfully convince the U.S. court that, under Brazilian law, the Client was entitled 50% of his fortune (even though this clause was not apparent in the divorce proceeding). Based on their ability to articulate the nuances of Brazilian law to a U.S. court, the court agreed with the team’s argument to preserve the assets in U.S. proceedings pending completion of the Brazilian proceedings.

Following the team’s success in court, counsel for the Client’s spouse approached Kobre & Kim with the purposes of settlement, which allowed the Client to preserve all assets in Florida – and in holding by the BVI company – until Brazilian divorce proceedings could be concluded. Had Kobre & Kim failed to preserve these assets, the court would have awarded them to the other party prior to the judgment.