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July 11, 2002 -- Donna Hanover was feeling like $6.8 million bucks yesterday after ending her brutal divorce battle with Rudy Giuliani, but the acrimonious war of words that marked the case showed no sign of letting up.
Giuliani "admitted he was cruel and inhuman based on his open relationship with Judi Nathan," Hanover lawyer Helene Brezinsky told reporters after the city's former first couple signed a deal to end their 18-year marriage (only 16 of which they spent together).

Giuliani lawyer Raoul Felder denied his client admitted anything.

Brezinsky said that under the terms of the deal, which was approved by Manhattan Supreme Court Justice Judith Gische, Hanover will get $6.8 million in cash, more than $370,000 in legal fees, the couple's $500,000 Upper East Side apartment and an undisclosed amount of child support.

A source said that Hanover's haul, which Giuliani has to pay over the next 30 months, is tax-free for her - meaning "America's Mayor" will have to foot millions more for the IRS bill.

Giuliani got visitation with his kids.

"This is a spectacular win for Donna and her children," Brezinsky said.

Felder countered that "there's never a winner in a divorce. There are people who are satisfied with the outcome, and we're satisfied."

The in-demand Giuliani should easily be able to withstand the whopping blow to his wallet - he's expected to make well over $8 million on speaking engagements this year, and is raking in millions more through his consulting firm and a book deal with Talk Miramax.

A source said Giuliani and his firm made several million last month alone.

While the Giuliani-Hanover marriage is officially over, their bickering isn't.

Felder's co-counsel, Michael Hess, said it was "unethical" for Brezinsky to say Time magazine's Man of the Year admitted to cruelty and adultery, because he defaulted on Hanover's countersuit, and didn't admit or deny anything.

Hess pointed to a statute based on which Giuliani legally didn't admit to anything - but Brezinsky pointed to another statute that says a no-denial in matrimonial cases equals an admission.

New York is a "fault" divorce state, which means one side has to accuse the other of wrongdoing to obtain a divorce.

A weary-looking Giuliani refused to comment on the cruelty charge after the court hearing, except to say, "This is an agreement in order to achieve a result that is in the best interest of our children.

"It's both a very sad day and a day in which I feel a great sense of relief. I'm relieved that we were able to reach an agreement on all of these terms and spare everyone any further pain or embarrassment . . . I hope for the very, very best for Donna, for her future."

Hanover refused comment as she left 80 Centre St. While she smiled when she first walked out of the building, she looked teary as she got in her car.

The case nearly went to trial yesterday morning on Giuliani's charge that Hanover was the "cruel" one. Brezinsky and Felder told Gische that while they were close to a settlement after working through the night, no deal was done.

Gische said if they couldn't strike a deal quickly, she'd start hearing the case. Four hours later, the two sides said they'd worked out their differences.

"Sometimes a birth takes a long time, but it gets done," Felder told the judge.

Gische told the couple she wished them "the best in your future," but added, "I hope I don't see you in my court again."

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