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Published: 14:57 GMT, 15 March 2013 | Updated: 14:58 GMT, 15 March 2013

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A Park Avenue fracas has erupted between real estate tycoon Harry Macklowe, his only daughter and her soon-to-be ex husband Kent Swig.

Swig has alleged that the leader of the Macklowe property development empire forged his signature so that his daughter, Elizabeth ‘Liz’ Swig, could cash insurance checks worth $270,000 that were paid to the couple for water damage to their luxury Manhattan apartment.

The 52-year-old alleges that though his estranged wife was awarded the property at 740 Park Avenue as part of their split, the insurance is still listed jointly in the couple’s name and so the pair should split the money.

Accusations: Kent Swig (pictured with Liz in 2008 at a NYC charity event) has accused his estranged wife of having her father sign insurance checks in Swig’s name

In-laws: Harry Macklowe (in 2005) is accused of taking the money from the insurance check as payment for money he had loaned to Swig before the breakdown of the couple’s marriage

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In court documents filed in New York in February, he says that Liz got her father to forge Kent’s signature so Macklowe could take the money as a repayment on a loan that the father-in-law had made to Swig before the couple’s separation.

‘Secretly, and fraudulently, Mr. Macklowe seemingly repaid himself whatever money he claims that is owed him (and his wife) forging $270,244.52 of checks that were made out to Kent Swig and Elizabeth Swig,’ the filing says, according to the New York Daily News.

The court filing includes a report by a handwriting expert that says the signature on the checks does not appear to belong to Mr Swig.

Harry Macklowe has denied engaging in a conspiracy against his daughter’s soon-to-be ex and filed an affidavit on Wednesday denying he signed the checks in Swig’s name.

Heiress: Liz Swig (in 2009) lives at the Park Avenue luxury co-op with the couple’s two sons, Simon and Oliver

Back in the 80s, Kent Swig was hand selected by the real estate mogul to court his prized daughter. Harry Macklowe and his wife Linda also have a son, William ‘Billy’ Macklowe, who has followed his father into the real estate development world.

Swig, from the San Francisco real estate family, was working for Macklowe’s firm on the West Coast and was set up with the blonde heiress on a blind date in 1987.

Two weeks later in April he proposed and the pair wed in May.

A graduate of Brown University and the University of California’s Hastings College of Law, Swig first worked for his father-in-law for about seven years.

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He decided to go out on his own in 1994 and founded his own real estate development firm Swig Equities.

Then in 1995, he partnered with the Zeckendorf brothers to form a luxury residential real estate company, Terra Holdings. Through Terra Holdings they acquired Brown Harris Stevens and Halstead Property.

Luxury: The couple’s apartment is located at the prestigious building on 740 Park Avenue

As he stepped out from the shadow of his own family and his father-in-law, the Swigs seemed to be living the high life.

They had two sons, Simon and Oliver, were prominent fixtures on the New York social circuit and Kent had acquired a reputation as a real estate wheeler and dealer with credibility on both coasts.

But as Kent hunted after more lucrative and risky real estate deals, it became too much and he soon landed in deep debt.

He acquired two properties, 322 West 57th Street and 25 Broad Street in the Financial District, in 2005 with the aim of converting them to condominiums but both projects ended in foreclosure.

Soon he accumulated millions of dollars in debts and was sued by some of his creditors.

Family ties: Liz’s brother Billy Macklowe is married to the fashionable Julie Macklowe

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As his business holdings unraveled, so did the Swig marriage in 2009.

By 2010, Liz Swig filed for divorce and an ugly back and forth erupted between the estranged partners.

Liz has claimed her husband forged her signature on a real estate deal back in 2006, so that he could use their luxury Park Avenue co-op as collateral on a risky project.

She also has said he forged her signature to obtain a $12.8 million loan to refinance their Upper East Side pad.

With Swig’s creditors knocking on his door, his alleged financial moves put the Park Avenue property at risk of foreclosure.

Swig in return has accused his estranged in-laws of conspiring with his creditors to force him into bankruptcy, though he has not declared bankruptcy.

The Macklowes have come together to put on a brave face amidst the ugly split.

Liz’s brother, Billy, who was married to Tory Burch until they split in 1993, jokingly told The Real Deal magazine, ‘Do you know the difference between in-laws and outlaws? Outlaws are wanted.’

Billy Macklowe is now married to the glamorous Julie, nee Lerner, a successful financier in her own right. The fashionable pair have one daughter, Zoe.

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