Justices consider alimony claims

When Las Vegas philanthropist Milton I. Schwartz died in 2007, he left behind an estate worth millions of dollars, several children and an ex-wife who was owed court-ordered alimony.

How much alimony that entails now rests in the hands of the Nevada Supreme Court -- as does the final destination of a life insurance policy worth $4 million.

On Tuesday, Justices Michael Cherry, Nancy Saitta and James Hardesty learned Abigail Richlin Schwartz, who was 41 when she married the 71-year-old Schwartz in 1993, requires $25,000 a month to maintain the lifestyle she grew accustomed to in the marriage. That is $20,000 a month more than Family Court Judge Arthur Ritchie Jr. awarded her at the couple's divorce trial in 2007.

Attorney Frederic Berkley, who represents Milton Schwartz's son Jonathan, told justices that Abigail Schwartz said she requires $10,000 per month for clothing and $2,000 a month for hair and makeup.

"She produced no evidence" to support her financial claims, said Berkley, adding that she originally requested $35,000 per month in alimony for seven years but later amended it to the lower figure.

Instead of the $5,000 monthly payments, which would be $420,000 paid out over seven years, she said she would accept a lump-sum payment of $2.9 million.

Her attorney, Robert Dickerson, said Ritchie might have ordered a lump-sum payment had he known Milton Schwartz was in extremely poor health. Dickerson said Milton Schwartz was in end-stage renal failure and was undergoing dialysis three times a week. Dickerson said there was no testimony regarding Milton Schwartz's health at the divorce trial, but "it was clear" he was faltering.

Dickerson focused his comments on the life insurance policy. Calling it the "pertinent" issue in the case, Dickerson argued that Abigail Schwartz had an irrevocable interest in the policy and that it was a property right.

But the provision would apply only if the two were still married and living together at the time of Milton Schwartz's death at age 85, Berkley argued.

"The key (to the insurance policy) is still married and living together," Berkley said. "The court found the mechanism was to ensure she gets paid if she's still married."

Milton Schwartz was one of the founders of Valley Hospital, a builder of the original Flamingo and the owner of cab companies. At the divorce trial, Ritchie found Abigail Schwartz had an estate valued at $3.6 million, including real estate and other investments. At Tuesday's hearing, Berkley said the bulk of her estate is free from encumbrances.

Contact Doug McMurdo at dmcmurdo@reviewjournal.com or 702-380-1151.