The former wife of a high-ranking Airbnb executive is contesting a divorce settlement, seeking £5 million after alleging the initial agreement was signed under duress and heavy medication, leaving her in a state of extreme poverty.
Caroline Bauer-Reiter, an interior designer and cultural history expert, married Martin Reiter, a business executive credited with masterminding Airbnb's international expansion, in 2012. The couple, who have two daughters, settled in Berlin in 2016 after marrying in Austria.
Their marriage broke down in 2018, and in 2019, they signed a financial separation deed in Germany. Under this agreement, Ms. Bauer-Reiter received no capital payment. Mr. Reiter agreed to cover her Berlin rent until 2028 and provide monthly maintenance of approximately £1,800 until August 2024, along with continued financial support for their children. The divorce was granted by consent in Germany that same year, with both parties stating all financial matters were settled.
Ms. Bauer-Reiter has since launched a legal bid to overturn this German agreement, asserting it was "egregiously unfair" and signed while she was suffering from severe psychiatric illness. Her lawyers claim her doctor supplied her with enough Xanax, a potent tranquilizer, "to sedate a horse" prior to and during the signing of the deed. She also contends that she is unable to work due to physical and mental health issues, including Ehlers-Danlos syndrome, a rare genetic condition that she states has significantly deteriorated due to her pregnancies.
Mr. Reiter's legal team counters these claims, arguing that Ms. Bauer-Reiter's social media activity, which includes synchronized dance routines, demonstrates she is in good health and capable of working. They also assert that her decision to move to London, which requires a higher cost of living than Berlin, was a self-created increase in needs and should not justify a greater financial provision.
Last year, a Family Court judge in the UK increased Ms. Bauer-Reiter's settlement. She was awarded a lump sum of £2.55 million, annual maintenance of £96,000 for 14 years, and over £1 million towards legal costs, in addition to child maintenance. This ruling is now being challenged by both parties at the Court of Appeal.
Mr. Reiter's lawyers argue that the Family Court judge exceeded his authority by substantially altering the German agreement, suggesting the judge disregarded the original deed and started anew. They contend that the increased award is excessive, particularly as Mr. Reiter has remarried, has two more children, and claims his net worth has fallen significantly, with liquid funds estimated to last only three months under the current interim order.
Conversely, Ms. Bauer-Reiter's representatives maintain that the £5 million she is now seeking is a modest sum given Mr. Reiter's overall wealth and his residence in a £11.5 million home in Holland Park, London. They reiterate that the German agreement was procured unconscionably under undue pressure while she was unwell, vulnerable, and heavily medicated.
Following their separation, Mr. Reiter remarried in March 2023. Two months later, Ms. Bauer-Reiter relocated to London with their children after obtaining permission from a German court. She subsequently initiated new proceedings in English divorce courts.
The Court of Appeal judges, Sir Andrew McFarlane, Lord Justice Moylan, and Lord Justice Lewis, heard the case and have reserved their ruling for a later date.