Multi-million-dollar battle waged over estate of Milton I. Schwartz

By Cy Ryan (contact)

Friday, Oct. 23, 2009 | 2:15 p.m.

CARSON CITY – A multi-million dollar battle is being waged by the ex-wife of the late rich businessman Milton I. Schwartz who helped built the Flamingo Hotel and was a founder of Valley Hospital in Las Vegas.

Abigail Richlin Schwartz and Milton Schwartz were married in 1993 and they lived a lavish life style. She was a registered nurse and 41-years old at the time of the marriage and he was 71.

But they were divorced in 2007. Abigail Richlin Schwartz maintains she was short-changed in the divorce ruling by Family Court Judge Arthur Ritchie Jr.

For instance, she says she’s entitled to collect on a $4 million life insurance policy. And she wants her alimony increased from $5,000 a month to $35,000 a month for seven years. Or in the alternative, she wants a lump sum alimony payment of $2.9 million.

Her arguments will be played out in a hearing before a panel of the Nevada Supreme Court in Las Vegas on Tuesday. Her suit is against Jonathan Schwartz, the son and personal representative of his father.

Schwartz, who was an owner of taxicab companies and real estate, died in August 2007, seven months after the divorce.

Jonathan, through his lawyer, Frederic Berkley, argues Abigail Richlin Schwartz was entitled to collect on the insurance policy only if the couple was still married at the time of the death. They were not.

Berkley says Judge Ritchie adequately took care of Abigail Richlin Schwartz when he awarded her $5,000 a month alimony for seven years.

At the time of the divorce, Milton Schwarz’s worth was $39 million and his income was $4 million a year, according to court documents.

Abigail Richlin Schwartz's lawyers Robert Dickerson and Denise Gentile, maintain that she owned the insurance policy and held a “property right” once Schwartz filed for divorce. It was her policy to collect on, they say.

Dickerson and Gentile say the provision in the life insurance policy that Abigail Richlin Schwartz collects only if they are married or living together was “illusory and duplicitous.” They said Schwartz “retained all the power to determine whether such contract should be fully performed.”

They argue the estate of Milton Schwartz has the money to support a $35,000 a month alimony payment Abigail Richlin Schwartz “needed to maintain the lifestyle to which she was accustomed during her 14 year marriage to Milton.” And a lump sum payment would not deplete Milton Schwartz's estate.

Abigail Richlin Schwartz says Milton Schwartz did not want her to work during their marriage and he paid all her expenses. After the divorce, she did not want to return to nursing because of foot problems.

At the time of the divorce, Judge Ritchie found Abigail Richlin Schwartz had $3.6 million in assets but she maintained the real amount is $3.2 million, which includes her $250,000 in jewelry, her $70,000 car, her real property in Henderson of $375,000 and cash value of her certificates of deposit of $2.6 million.

Berkley, the attorney for Jonathan Schwartz, says at the time of the couple’s marriage, the net work of Milton Schwartz was $30 million while Abigail Richlin Schwartz's was about $30,000.

Berkley said Judge Ritchie, considering the earning potential of Abigail Richlin Schwartz, awarded her alimony “more than sufficient to meet her monthly needs.” His legal brief to the Supreme Court said “In an abundance of generosity, Judge Ritchie decided to exercise discretion to award spousal support to Abigail which will allow her to maintain a lifestyle that could include travel, shopping and dining out.”

He also said Abigail Richlin Schwartz never produced a single piece of evidence to justify her claim she spent $24,232 to $35,000 a month during the marriage.

There are also arguments over attorney fees and taxes.

The court panel composed of Chief Justices James Hardesty, Michael Cherry and Nancy Saitta will hear 30-minutes of arguments (11:30 a.m.) and issue a ruling later.

Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com