Michael Fuchs, the billionaire property tycoon who once held a stake in Manhattan’s iconic Chrysler Building, has suffered a significant legal setback in his prolonged divorce dispute, as reported by The Times.
The latest ruling from the High Court found that Fuchs attempted to avoid paying his former wife, Alvina Collardeau-Fuchs, by setting up a “sham” tenancy arrangement on a luxury Cotswolds estate.
The dispute stems from a five-year legal battle during which Collardeau-Fuchs sought £1.16 million annually for child maintenance, while Fuchs proposed £350,000. A settlement ordered him to cover school fees and nannies, up to £100,000 per year, and make annual payments of £554,000 for their two children. This marks the second-largest child maintenance award in UK history, surpassed only by the case involving Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum and Princess Haya.
Despite a 2023 High Court ruling by Mr Justice Mostyn ordering Fuchs to pay nearly £19 million in a lump sum, he failed to comply. To settle the financial remedy, he was directed to liquidate assets, including a property on the Lakes by Yoo estate in Gloucestershire. However, he claimed a tenancy agreement prevented him from selling the property.
In the latest ruling, Mr Justice Poole determined that the tenancy agreement between Fuchs and the chairman of Australian property group LJ Hooker was a “sham” designed to evade the court-ordered settlement. The judge expressed “little hesitation” in concluding that the lease was hastily arranged to obstruct the enforcement of the divorce ruling. Under the purported agreement, LJ Hooker was to pay Fuchs £70,000 per year in rent, yet the court found that the chairman was well aware of Fuchs’ contentious legal battle with his ex-wife.
Mr Justice Poole harshly criticized Fuchs’ conduct, calling it “of great discredit.” Court documents detailed previous financial claims from Collardeau-Fuchs, including £21,000 for extracurricular sports, £18,000 for theatre outings, £20,000 for gifts for school staff, £86,000 for parties, and £48,000 for clubs and activities. Towards the end of their marriage, their family’s annual living expenses reportedly amounted to approximately £900,000.
Fuchs, who acquired a stake in the Chrysler Building in 2019, is estimated to be worth over $1 billion (£770 million), while his former wife has an estimated fortune of nearly $4.5 million.
This ruling adds to Fuchs’ ongoing legal troubles on both sides of the Atlantic. His investment in the Chrysler Building has also faced difficulties. In 2019, he and a business partner purchased the landmark through their firm, RFR Holding, for approximately $150 million. At the time, The New York Times reported that the new owners planned to restore the iconic skyscraper to its former glory.
However, they did not acquire the land beneath the building, instead leasing it from The Cooper Union for the Advancement of Science and Art. Last autumn, the college terminated the ground lease and reclaimed control of the property due to alleged unpaid rent.
Fuchs has not yet commented on the latest court ruling.
