A former Airbnb executive is engaged in a legal dispute over a proposed increase to his ex-wife’s divorce settlement, which she now seeks to raise to approximately £5 million. Martin Reiter, who played a key role in expanding Airbnb internationally, and Caroline Bauer-Reiter, an interior designer and cultural history expert, were married in 2012. They split in 2018 after living between Berlin and London, and initially signed a financial agreement under German jurisdiction that provided Ms. Bauer-Reiter with no capital lump sum from her ex-husband’s estimated £17.3 million fortune and no personal financial support beyond 2028.

Ms. Bauer-Reiter has challenged the agreement, describing it as “egregiously unfair” and claiming she signed it while severely mentally unwell and heavily medicated with Xanax, a prescription tranquilizer. Her legal team contends she was “very distressed,” suffered a panic attack during the signing, and that her psychiatrist supplied her with a high dose of the medication prior to and during the meeting. Additionally, they argue that her ability to work is limited due to mental health conditions and Ehlers-Danlos syndrome, a rare genetic disorder.

Last October, a Family Court judge in London ruled in her favor, varying the German divorce order to award Ms. Bauer-Reiter a £2.55 million lump sum, annual maintenance payments of £96,000 for 14 years, more than £1 million towards legal costs, and child support. The judge noted Mr. Reiter's net worth at the time as £17.3 million. However, both parties have now appealed to the Court of Appeal, with Ms. Bauer-Reiter seeking to convert her settlement into a single lump sum roughly double the Family Court award, while Mr. Reiter aims to reinstate the original German arrangement, which he and his legal team describe as fair and argue was unreasonably varied by the UK judge.

Mr. Reiter, who remarried in March 2023 and moved to a £11.5 million property in Holland Park, London, has argued through his barrister that the increased settlement is “wholly excessive.” His legal team has questioned Ms. Bauer-Reiter’s claims about her inability to work, citing evidence such as social media posts showing her engaging in elaborate dance routines, suggesting a level of physical health inconsistent with her statements. They also contend that Ms. Bauer-Reiter’s move to London, which contributes to higher living costs, constitutes a “self-created increase in needs.”

Representing Ms. Bauer-Reiter, her counsel countered that the sum awarded so far is relatively modest given Mr. Reiter’s substantial wealth and lifestyle. The judges hearing the appeal—Sir Andrew McFarlane, Lord Justice Moylan, and Lord Justice Lewis—have reserved judgment following a full-day hearing, with a ruling expected at a later date.