LOS ANGELES -- Former three-time heavyweight boxing champion Muhammad Ali agreed Tuesday to set up a $200,000 trust fund to support an 11-year-old daughter from his second marriage.
The agreement was reached to head off a potentially tense court hearing to force Ali to pay child support for Khaliah, the child of his marriage to Aaisha Ali.
While tempers flared Tuesday between the judge and attorneys in a preliminary court appearance, Muhammad Ali and the girl cuddled and whispered softly in a back row of the courtroom. The settlement, reached late in the afternoon, made a legal confrontation unnecessary.
Aaisha Ali and the boxer's third wife, Veronica, paced outside the courtroom.
One of Muhammad Ali's attorneys, Robert Lemkin, said Ali agreed to set up a $200,000 trust fund that would take care of Khaliah's needs for the next 10 years and promised to pay for her medical insurance. He also agreed to give Aaisha $5,000 from the sale of the $660,000 home he shared with Veronica.
Aaisha Ali's attorney, Judith Forman, came to court to intervene in the June 1985 divorce agreement between Veronica and Muhammad Ali, claiming it left the boxer with 'next to nothing' to use as support for Khaliah.
She claimed Ali did not know the consequences of the settlement when he agreed to it.
Veronica has two children from her marriage to Ali, Hanna Yasmeen, 8, and Laila, 7. Forman claimed Ali supported those two children in a lavish lifestyle, but refused to make payments to Khaliah, leaving her and her mother to cope with a delapidated home in Philadelphia without adequate heat and hot water.
Forman said she and her client were 'delighted' with the settlement.