Harold Hamm & Sue Ann Arnall: The $975 Million Check She Called Insulting
He wrote her a check for nearly a billion dollars -- she refused to cash it because it wasn't enough
Key Facts
What Happened
Harold Hamm, the founder and CEO of Continental Resources and one of America's wealthiest self-made billionaires, divorced his second wife Sue Ann Arnall in 2015 after 26 years of marriage. At the peak, Hamm's fortune exceeded $18 billion, built almost entirely on his mastery of horizontal drilling in North Dakota's Bakken oil fields. The case became a landmark in American divorce law for its treatment of business valuation.
The central legal question was deceptively simple: how much of Continental Resources' value was due to Harold's personal effort (an 'active' increase subject to division) versus market forces and oil prices (a 'passive' increase that remained his separate property)? Oklahoma, where the case was tried, distinguishes sharply between the two. The judge ruled that the vast majority of the company's growth was passive -- driven by rising oil prices and geological luck rather than Harold's individual labor.
The court awarded Sue Ann $995.5 million, which after credits came to approximately $975 million. Harold personally wrote a check for $974,790,317.77 and handed it to Sue Ann's attorney. In an extraordinary move, Sue Ann initially refused to cash the check, calling the amount inadequate given the size of Harold's fortune. She eventually cashed it after filing an appeal -- which she later dropped.
The case sent shockwaves through the world of high-net-worth divorce. A billion-dollar settlement sounds enormous, but it represented roughly 5% of Hamm's peak net worth. The ruling established that even in long marriages, a founder's pre-marital business can be largely shielded if its growth is deemed 'passive.' Business owners across America took note.
Legal Breakdown: Business Valuation & 'Active' vs. 'Passive' Appreciation
Active vs. Passive Appreciation
Oklahoma law, like many equitable distribution states, distinguishes between 'active' appreciation (growth due to a spouse's direct effort) and 'passive' appreciation (growth due to market forces). Only active appreciation is marital property. The judge found most of Continental's growth was passive, shielding billions from division. This distinction exists in most US states but is applied differently by each.
Business Valuation in Oil & Gas
Valuing an oil company is extraordinarily complex. Reserves in the ground, commodity price assumptions, drilling technology improvements, and management quality all affect value. Both sides hired teams of experts who reached vastly different conclusions. The judge's choice of methodology determined the outcome more than any other factor.
Refusing a Settlement Check
Sue Ann's decision to reject the $975 million check was legally risky. In most states, refusing to accept a court-ordered settlement does not change the amount -- it just delays payment. She eventually cashed the check and dropped her appeal, suggesting her legal team concluded the award was unlikely to increase on appeal.
What This Means for Your Divorce
- →The active vs. passive appreciation distinction can shield billions in business value from divorce. Understand how your state applies this rule.
- →Business valuations in divorce are battles of expert witnesses. The methodology chosen can swing the result by billions.
- →Even a $975 million settlement can be considered inadequate when the estate is worth $18 billion. Perspective matters in high-net-worth cases.
- →Refusing a settlement check is dramatic but rarely changes the outcome. Consult your attorney before making symbolic gestures.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.