Eric Schmidt & Wendy Schmidt: The $27 Billion Open Marriage and Near-Divorce That Never Was
Google's former CEO and his wife of 45+ years have navigated infidelity, an open marriage, and $1.5 billion divorce rumors without ever formally splitting.
Key Facts
What Happened
Eric Schmidt and Wendy Schmidt met at the University of California, Berkeley in the late 1970s. They married in 1980 and went on to have two children. As Eric rose through the ranks of Silicon Valley, serving as CEO of Novell before becoming Google's CEO in 2001 and later its executive chairman, the Schmidts became one of technology's most prominent power couples. By 2013, Eric's net worth had swelled to an estimated $9 billion, most of it from Google stock.
In 2013, media reports began circulating that the Schmidts were heading for a $1.5 billion divorce. The speculation was fueled by Eric's increasingly public extramarital relationships. Reports detailed how Schmidt maintained relationships with multiple women, including a luxury penthouse in New York described as a party venue. However, Wendy and Eric never filed for divorce, and reports indicated they maintained what was characterized as an open marriage.
The arrangement came under renewed scrutiny in 2024 when Michelle Ritter, a former girlfriend 39 years Schmidt's junior, filed a $100 million lawsuit against him alleging stalking, digital surveillance, and abuse. The lawsuit exposed a pattern of relationships outside the marriage, but Wendy and Eric remained legally married throughout. Wendy, meanwhile, built her own legacy as a major philanthropist, leading the Schmidt Family Foundation and the Schmidt Ocean Institute.
The Schmidt case illustrates a growing reality among ultra-wealthy couples: some choose to remain legally married for financial, estate-planning, or personal reasons even when the romantic relationship has effectively ended. The legal and tax advantages of marriage, particularly when billions in assets are involved, can make formal divorce economically irrational.
Legal Breakdown: When Billionaire Open Marriages Make Legal Headlines
The Economics of Staying Married
For ultra-high-net-worth couples, divorce can trigger massive tax consequences, disrupt corporate governance, and fragment estate plans. California, where the Schmidts reside, is a community property state. A divorce could have required the division of billions in Google stock, potentially triggering capital gains taxes and disrupting shareholder agreements. Remaining legally married preserves the marital estate intact.
Open Marriage and Legal Exposure
While open marriages are not illegal, they create unique legal vulnerabilities. Schmidt's relationships outside the marriage led to a $100 million lawsuit alleging abuse and surveillance. In community property states, debts and liabilities incurred during marriage can potentially expose both spouses' assets. The legal entanglements of extramarital relationships can have consequences far beyond the personal.
Estate Planning Advantages of Marriage
The unlimited marital deduction under U.S. tax law allows spouses to transfer unlimited assets to each other without triggering estate or gift taxes. For a family worth $27 billion, the estate tax savings of remaining married are enormous. A divorce would eliminate this protection and force both parties to separately plan for the 40% federal estate tax on assets above the exemption.
What This Means for Your Divorce
- →Ultra-wealthy couples sometimes remain married for financial and estate-planning advantages even when the personal relationship has changed dramatically.
- →Community property states can make divorce particularly expensive for tech billionaires whose wealth is concentrated in appreciated stock.
- →Open marriages create legal exposure that extends beyond the couple, as third-party relationships can generate lawsuits that affect the marital estate.
- →The unlimited marital deduction is one of the most powerful estate-planning tools in U.S. tax law and can be a compelling reason to avoid formal divorce.
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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.