Comedic actors Danny DeVito and Rhea Perlman separate, now contenders for a collaborative divorce.

Credit: Kevin Winter/Getty Images.

The couple recently announced their split after more than 40 years together. You may recall that DeVito once co-starred in the hit film, The War of the Roses, based on a contemptuous divorce. Hopefully, his real life won’t imitate his ‘reel’ life anytime soon. But it could happen.

DeVito and Perlman started dating in 1971 and were married in 1982. DeVito is perhaps best known for the TV series Taxi, the ABC/NBC series for which he won an Emmy for playing Louie DePalma. Perlman, of course, won four Emmys of her own for playing the role of Cheers’ wisecracking waitress Carla Tortelli.

With a combined estimated worth of nearly $130 million, the Perlman/DeVito split certainly qualifies as a high net worth divorce.

When dealing with high net worth splits, how can each party ensure that they get to keep what is rightfully theirs without the uncertainty of litigation? Since DeVito and Perlman have (so-far) maintained a united front, this divorce can be considered amicable. If the couple is not yet in full agreement, they may institute Collaborative Law to divide assets.

Collaborative Law is an alternative legal process in California where divorcing couples each have full representation by their own lawyers trained in the Collaborative Law process.

The couple and the lawyers sign an agreement that they will not litigate the matter in court. The goal is to work out a plan with their lawyers and sometimes with the assistance of other professionals, such as accountants, parenting coaches, real estate and investment advisors, in order to settle their divorce and avoid the uncertain outcome of contested litigation. If either party later decides to litigate in court, the attorneys are disqualified and the parties have to start litigation with new lawyers. This is an incentive for everyone to commit to the process, including the lawyers.

Collaborative Law differs from mediation where one lawyer is used as a neutral party to work out a settlement without lawyers representing them in the mediation.

California is a community property state and most things acquired during a marriage must be split 50/50. However, the division of community property can be more complicated if the spouses own a business. This is why high net worth divorces often involve forensic accountants, real estate appraisers and business valuators.
This could be complicated for DeVito and Perlman. Together they co-founded Jersey Films, a production company known for such films as Pulp Fiction and Erin Brockovich. However, Collaborative Law allows for a creative solution to how the couple would like businesses and assets like this to be split. If they decided to bring the divorce action to trial, DeVito and Perlman would lose any control over the outcome and would put the decision squarely in the judge’s hands. Not to mention, when dividing high net worth assets, former spouses can often be antagonistic, and there can be mud-slinging in the public eye.

Collaborative Law offers privacy as well as a civil forum in which to handle disputes.

This is why we are seeing an increasingly higher number of divorcing high net worth couples turning to Collaborative Law over a courtroom free-for-all. Not only are the would-be litigants saving money (trial attorneys may have the financial interest of drawing out proceedings to earn extra cash and make a name for themselves in the media), but they are saving themselves from any humiliation on the public record. Why put on a media circus when these things can be handled safely behind closed doors?