When most people are late paying a bill, they might accrue a little but of interest. But most of us are not dealing with multimillion-dollar divorce settlements, like the chief executive of Credit Suisse Group AG.
Brady Dougan was 12 days late in paying his ex-wife a $7.5 million installment in their divorce settlement according to court records. The penalty -- a whopping $750,000-plus in interest. The lower court decided that the executive owes his ex-wife interest dating back more than a year to the divorce agreement.
So, on Tuesday, Dougan’s lawyers argued before the state Supreme Court that he shouldn't have to pay all of that interest. There was no immediate ruling.
Dougan had agreed to pay his ex-wife, Tomoko Hamada Dougan, $15.3 million in two installments under their 2005 divorce settlement, according to court documents.
The second installment was 12 days late in 2006, and he gave her about $25,000 representing interest for the 12 days at the 10 percent annual rate set by the settlement, records state.