Patricia Kluge, Once the Wealthiest Divorcee, Files for Bankruptcy Protection

Patricia Kluge, once the wealthiest divorcee in history, has filed for bankruptcy protection with her husband, The Associated Press reports.
"They're getting on with their lives, trying to discharge their debts and start over," the couple's lawyer, Kermit Rosenberg, said.
Kluge, a socialite, acquired the 23,500-square-foot Albermarle House and 3,000 acres of rural Virginia land when she divorced billionaire media mogul John W. Kluge in 1990. At the time, it was the biggest divorce settlement in history, rumored to be $1 billion. John W. Kluge died in September.
In the U.S. Bankruptcy Court Chapter 7 filing, Kluge and husband William Moses listed business obligations as their major debts. They estimated their assets to be between $1 million and $10 million, with $10 million to $50 million in liabilities.

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Rosenberg said the couple was forced to file after negotiations with three principal banks fell through. The banks had foreclosed on the couple's winery business, the Albemarle House mansion and a group of luxury homes under development. In addition, Bank of America filed a lawsuit against Kluge, alleging that Kluge defaulted on three loans worth nearly $23 million.

Donald Trump bought most of Kluge's winery and vineyard from Farm Credit Bank for $6.21 million in April. A year ago, Kluge, 62, tried to save the struggling winery by having an onsite auction hosted by Sotheby's and liquidating much of her jewelry.