Most expensive divorce in history

America's richest and most influential businessmen Continental Resources chief executive Harold Hamm is embroiled in a contentious divorce that could lead to a record settlement and threaten his control of America's fastest growing oil company.

Sue Ann Hamm, 56, Harold Hamm's second wife and a former executive at Continental, filed for divorce on May 19, 2012, Oklahoma court records show.

Documents in the case are sealed but in a March 7, 2013 filing Sue Ann Hamm alleges that Harold, 67, ‘was having an affair’ that she discovered in 2010.

Big divorce: Sue Ann Hamm, left, Harold Hamm's second wife and a former executive at Continental, filed for divorce on May 19, 2012, Oklahoma court records show

Alleged affair: Sue Ann Hamm alleges that Harold 'was having an affair' that she discovered in 2010, prompting her to later file for divorce

Fundraiser angst? Harold Hamm is pictured with Mitt Romney. Ten days after he held an event for the presidential candidate last year his wife filed divorce papers

The papers were filed just ten days after the couple held a fundraiser at their Oklahoma mansion for Republican candidate Mitt Romney – raising $2million in one night.

Harold Hamm served as a senior energy adviser to the campaign and was referenced in Romney's CPAC speech earlier this month admiring his 'perseverance'.

'Harold Hamm drove a truck for ten years so that he could afford to go to college,' he told the party.

Time magazine named him one of the most influential people in the world, and Forbes listed him last year among the 50 richest Americans. Ranked No. 35, Hamm is worth $11.3 billion, the magazine estimated.

His estranged wife, Sue Ann Hamm, 56, has held key posts at Continental but is no longer with the company, her lawyer said.

 

The Hamms own four homes together including their family complex in Nichols Hills where they own two neighboring mansions - one which has its own a basketball court and the other with an outdoor swimming pool. 

They have enjoyed a high society lifestyle in Oklahoma where they are well-known for their philanthropy.

They were married in Las Vegas in 1988 raising their two daughters Hilary, 19, and Jane, 22, a regular in the society pages. 

The girls were both educated at the exclusive 80-acre Casady school in Oklahoma City and shared an elaborate rock and roll themed party for their 15th and 18th birthdays at the Skirvin hotel in 2008 with giant guitar shaped cake.

Jane Hamm was a debutante at the member’s only Bachelor Club Ball in 2010 and now works as an analyst at JP Morgan.

Sue Ann, whose maiden name was Arnall, is a lawyer and economist who met Harold Hamm after his first marriage to Judith Ann failed.

He had three children with Judith - Tom Hamm, Shelly Lambertz and Deana Cunningham.

Mansions: The Hamms own four houses together including this pair of mansions in an exclusive enclave of Nichols Hills

Debutante: Jane Hamm was a debutante at the exclusive member's only Bachelor Club in Oklahoma in 2010

High-life: Sue Ann Hamm and the couple's daughter Jane are pictured at a lunch for the Wall Street Journal Innovator of Year award

Influential: Time magazine named Hamm one of the most influential people in the world, and Forbes listed him last year among the 50 richest Americans 

On May 9 2012 they hosted a fundraiser for Romney at their $3 million mansion. 

The event is said to have raised more than $2 million for the Romney campaign.

‘We invited everybody we knew, but I know a lot of oil folks,’ Hamm told The Oklahoman at the time.

‘We’re going to have to rake some of the flower beds. We’ll have a good showing for him.’

Whether the Hamms signed a prenuptial agreement is unclear.

Top ten most expensive divorce settlements 

According to Business Insider, here are the top ten most expensive divorces of all time: 

10. Michael and Juanita Jordan $168million 
The couple also married in Las Vegas. 17 years later Juanita filed for divorce

9. Michael and Maya Polsky $184million 
The founder and CEO of Invernergy LLC married his wife in the Ukraine. They were married for 31 years before Maya filed for divorce

8. Roman and Irina Abramovich $300million 
The couple married in 1991 and had five children. They divorced after 16 years

7. Robert and Sheila Johnson $400million
The couple founded BET which was sold to Viacom for $3billion. After the divorce Sheila married the presiding judge

6. Mel and Robyn Gibson $425million 
The Gibsons were married for 31 years. Robyn filed for divorce in 2009

5. Craig and Wendy McCaw $460million 
Craig made his fortune selling McCaw Cellular to AT&T. The couple split in 1998 and had been together since college

4. Stephen and Elaine Wynn $740million 
They couple were married for 20 years, divorced and then remarried five years later. They divorced again in 2009 and Elaine received the fortune in company stock

3. Adnan and Soraya Khashoggi $874million
The Saudi arms dealer and businessman was divorced by his wife in 1974 after 13 years of marriage

2. Bernie and Slavica Eccelstone $1-1.2billion 
The high-profile divorce was filed in 2008. The five-foot-four Formula One CEO and six foot wife made an odd couple 

1. Rupert and Anna Murdoch $1.7billion 
The Murdochs were married for 32 years before their divorce. 17 days later Rupert Murdoch married Wendi Deng, 30

Legal analysts who reviewed court filings said that without one, the case could lead to a record-breaking financial settlement - one that could exceed the $1.7 billion paid by News Corp. founder and chairman Rupert Murdoch to ex-wife Anna in 1999.

One outcome could be a split of ‘marital property’ that may include dividing Harold Hamm's controlling 68 per cent stake in Continental, currently worth $11.2 billion.

‘I don't know of anything that's ever been this big,’ said Barbara Atwood, professor emeritus of family law at the University of Arizona. ‘There's just so much money involved.’

Continental was subpoenaed in the case last summer, and it was ordered by the Oklahoma court to hand over documents late last year. Four other companies controlled by Hamm also were subpoenaed.

Hamm, the 13th child of Oklahoma sharecroppers, started his career at age 20, scrubbing scum out of oil barrels. 

His story is the ultimate tale of rags to riches - founding Continental in 1967.

Hamm's biggest breakthrough came in the 1990s, when he helped discover the Bakken field of North Dakota, the largest new U.S. oil prospect since the 1960s.

Today, the Bakken yields nearly 700,000 barrels a day, roughly 10 per cent of American output. Continental controls more than 1 million acres in the formation, which stretches from North Dakota to Montana. The firm also owns oil and gas rights in several other states, including Oklahoma.

Continental has said the entire Bakken field - being developed by several companies - may contain 24 billion barrels of oil.

Hamm directly controls 126.3 million shares, or 68 per cent, of Oklahoma City-based Continental and more through family trusts. Those shares alone are worth at least $11.2 billion.

But his stake in Continental could change significantly as a result of a divorce settlement. The firm's massive growth occurred during the marriage. Its share price has surged nearly 500 per cent in the five years since an initial public offering in 2007.

Under Oklahoma family law, wealth accrued through the efforts of either spouse during a marriage would typically be subject to 'equitable distribution' between the parties.

‘A court in Oklahoma may look closely at what each party has contributed,’ said legal specialist Atwood. ‘But it sounds to me like both spouses here were working hard in the business.’

‘Where there are concerns about company control in a settlement, a spouse would usually get paid the value of the shares,’ she said. ‘This is going to be really interesting.’

Reports suggest the couple’s marriage has been far from peaceful in recent years.

Court records show that Sue Ann Hamm also petitioned for divorce in 2005 in a case that was dropped.

In 1998 Harold Hamm filed for divorce and demanded that Sue Ann undergo a psychological evaluation. He later withdrew the divorce petition and the case file was ordered destroyed this year, on February 13, according to Oklahoma court records.

According to Harold Hamm, the couple ‘actually separated in the fall of 2005 and have lived separate lives ever since,’ the court document says.

But Sue Ann Hamm's attorneys counter that the Hamms ‘continued to reside together, travel together, attend public functions together, raise their children together, file joint tax returns, and work together.’

Last September, Reuters reported that Harold Hamm had made political contributions that exceeded federal legal limits by as much as 41 per cent during the 2011-2012 election period.

Privilege: Hilary Hamm is pictured riding. Harold and Sue Ann have raised two daughters in Oklahoma

A review of Continental's Securities and Exchange Commission filings and company statements shows no mention of the divorce proceedings

Continental said at the time that the donations were made from an account held jointly by Harold and Sue Ann Hamm and were intended to be split between Hamm and his wife, which would have kept the donations within legal limits.

In 2011 the couple signed up for Warren Buffett and Bill Gates' Giving Pledge initiative which committed them to giving most of their wealth to philanthropy.

In the pledge the couple listed the fields they intended to donate to including health, education and animal rights. 

It says: ' We have always felt a strong obligation to lead by example..We hope to extend this legacy of giving not only within our family, but also to all of society. We are humbled by what we have achieved and recognize the responsibilities that come with success.'

Ambitious career man: Hamm, the 13th child of Oklahoma sharecroppers, started his career at age 20, scrubbing scum out of oil barrels

Continental shares were trading down 2.1 per cent at $86.86 by 3:16 p.m. EDT. They fell as low as $85.85 after the divorce proceedings were acknowledged by Hamm.

Although Continental has no legal obligation to disclose the Hamms' divorce proceedings to shareholders, some say they should have been informed. 

‘It's a lawsuit that involves a potential impact on the controlling shareholder,’ said Charles

Elson, director of The Weinberg Center for Corporate Governance at the University of Delaware.

‘Certainly, it would be relevant to an investor if there is going to be or could be a shift in control.’

Continental put out a statement saying the divorce, ‘is not anticipated to have any impact or effect on the company's business or operations.’

An attorney for Sue Ann Hamm declined to comment, citing a confidentiality agreement governing the case.

 

Prior divorce filing: In 1998, Harold Hamm filed for divorce and demanded that Sue Ann undergo a psychological evaluation