What happens in Bankruptcy Court if the divorce court determines that the Dodgers are community property?
I don’t think anyone knows. Bankruptcy law is difficult enough to understand, but this case gets truly complicated when you consider the intersection of bankruptcy and divorce law. Bankruptcy Court focuses on maximizing value for debtors; divorce law takes a similar attitude toward protecting assets for the benefit of each spouse. For the most part, divorce law takes a back seat to bankruptcy law; the divorce court cannot distribute assets that are tied up in bankruptcy. Still, expect that Jamie McCourt will find some way to have her interests heard in this case. Who do we blame for this? Is this Bud Selig’s fault for allowing McCourt to buy the Dodgers in the first place? It is probably true that Selig gave McCourt the “inside track” to buy the Dodgers from News Corp. (Fox). But Selig has recently stated that there were “no other bidders” for the Dodgers, and there’s some truth to this as well. One-time Madison Square Garden boss Dave Checketts reportedly made a $650 million bid for b
