Gibbons divorce on pause

CARSON CITY -- Gov. Jim Gibbons and first lady Dawn Gibbons announced Monday they have suspended further action in their divorce case while they try to resolve issues affecting the divorce.

As part of the agreement, Dawn Gibbons will move out of the Governor's Mansion and into a guesthouse on the mansion grounds. Jim Gibbons, who has lived in the couple's home in southwest Reno for several months, will move back into the mansion.

The agreement was announced in a one-page statement signed by the governor's lawyer, Gary Silverman, and the first lady's lawyer, Cal Dunlap.

A source said the agreement means Gibbons and his wife probably will settle financial matters quickly and complete a private divorce in a matter of weeks.

Both Silverman and Dunlap said there would be no additional comment until the governor and his wife resolve issues related to the divorce action.

By moving from the mansion, Dawn Gibbons solves a potential legal problem for the governor.

An 1866 law requires governors to live in Carson City. And a 1907 law that provided $40,000 to build the Governor's Mansion states it shall be the home of the "state executive."

Although members of the governor's staff said Gibbons still held meetings at the mansion and met the intent of the law, there had been a public outcry that Dawn Gibbons could not legally live there without her husband.

Under the agreement, both Jim and Dawn Gibbons can use public areas of the Governor's Mansion for public duties and for meeting with their staffs.

As first lady, Dawn Gibbons has led the administration's effort to reduce use of methamphetamine.

The agreement to suspend further action means at least temporarily there will be no attempt by Dawn Gibbons to open up records of the divorce case and to conduct the divorce trial in public.

Jim Gibbons filed for divorce May 2 from his wife of 22 years, contending "incompatibility in marriage." They have a 20-year-old son, Jimmy, a cadet at the U.S. Merchant Marine Academy in New York. Jim Gibbons has two children from a previous marriage.

On May 5, District Judge Bill Maddox ruled that all records in the case would be sealed and that the trial would be conducted in private.

He acted under a 1931 law that allows one party in a divorce action to seal records and request a closed divorce hearing. The law states such requests "shall" be honored by the judge in the case.

But Dunlap last month filed a motion to seek to have the case opened to the public.

He contended the secrecy in divorce law did not apply in cases affecting major public officials, such as a governor.

Dunlap also said the real reason Gibbons wanted a divorce was because he has been involved with another woman. The lawyer called this woman a "marital intruder" who virtually stalked the governor.

The woman later was identified as Kathy Karrasch, the estranged wife of Reno podiatrist, C. Craig Karrasch.

The governor denied he has had an affair with Kathy Karrasch and called her a good friend whom he has known for more than 15 years. Gibbons has attended school functions involving Kathy Karrasch's daughter.

Lawyers have refused to discuss a settlement proposal in the case, but sources close to the governor said last month that Gibbons has made three offers to the first lady, which she has rejected.

Dawn Gibbons is seeking permanent support from the governor, one source said, and will not agree to a divorce as long as Gibbons remains governor.

Permanent support rarely is granted these days in divorces. When Gibbons was granted a divorce from his first wife, Toy, in 1983, she received $600 per month alimony for 21/2 years. She had sought permanent support of $1,300 per month.

Nevada is a community property state, under which each party is entitled to half of the property gained during a marriage. Each also must cover half of any debt incurred during the marriage.

To resolve the divorce, the governor is willing to give up more than half of the couple's community property to Dawn Gibbons, one source said.

The couple owns a ranch-style home on 2.8 acres in southwest Reno. Its value is listed at $661,000 on property tax rolls.

Dawn Gibbons said last year that the couple took out a mortgage on the house to cover legal expenses. The governor has hired Washington lawyers to defend him from the allegations he illegally aided businessman Warren Trepp, whose company landed military contracts while he was in Congress. No charges have been filed.

The governor also owns 40 acres in Elko County, which he bought for $575,000 using proceeds from a congressional pension, the first lady said last year. Gibbons wants to build a home there.

Contact reporter Ed Vogel at evogel@reviewjournal.com or 775-687-3901.