Sheltering Your Money from Your Ex-Spouse

OP

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

6y

@Nathan G.

I think Bill should be honest too, at least for the kid. So then how should Bill address this to Hillary? Should there be a cap on how much Hillary gets if Bill starts owning millions of dollars in property?

Mark Cruse

Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes

6y

What if Hillary is greedy, hateful and only wants to destroy Bill and will unfairly target him every way possible? Not fair.

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

6y

I would recommend Bill speak with his attorney. If he does it wrong and ends up in court, it could hurt worse.

If he had a good relationship with Hillary, he could share his plan and offer to increase support with a limit. Maybe she's willing to sign something saying she will settle for no more than a 20% increase to current support requirements and he can keep anything beyond that.

Of course, that assumes they have a relationship and Hillary is approachable.

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

6y

I don't know of any/many situations where an ex-spouse would be entitled to any proceeds gained after a legal divorce. If the money was hidden before the divorce that would be a different story. Once alimony is set, that's what they're entitled to, and alimony is (theoretically) based on a reasonable level of support that was expected based on the marriage assets and income of the working spouse. Child support more or less the same, i.e. you don't get more child support just because one spouse starts doing better in life. Take this as someone who has been down this road (not the cheating and paying alimony road!)

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OP

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

6y

@JD Martin

Thanks JD, I will let Bill know. I don’t know many people who went through this so it’s tough to give good advice. Your response seems reassuring for his situation.

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

6y

Originally posted by @Nick Rutkowski:

@JD Martin

Thanks JD, I will let Bill know. I don’t know many people who went through this so it’s tough to give good advice. Your response seems reassuring for his situation.

Keep in mind if these are assets that were hidden from the divorce, he better consult an attorney before he does anything else. He could actually go to jail depending on the situation and jurisdiction for defrauding his wife in a civil proceeding. If these are clean assets that he obtained with his own funds after the divorce, he really has nothing to worry about.

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Andrew B.

Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes

6y

Bill should consult an attorney to figure out what he must disclose, and a CPA to discuss how to minimize his taxable income. Bill should not be looking for this advice on a public forum.

Bjorn AhlbladPro Member

Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes

6y

Once it is settled; that's it. Your friend can buy all the condos he wants. You can volunteer extras that you may independently take on; but that is a choice. I continued to pay alimony until my ex died, did not have to, but it kept order in the family (and alimony is a tax deduction). Go about your business, don't hide stuff but no need to get into any extra details either. It works both ways I personally know women who pay alimony to their ex's too.

Steve M.

Morris, IL · Member since 2019 · 19 posts · 22 votes

6y

I would be concerned about ending up like Jeff.

5 Reply

Dennis M.

Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes

6y

think he should consult with an attorney , have a cigar and never inhale !

OP

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

6y

@Steve Mahnke

I don’t think anyone wants to be a Jeffery. Especially that guy!

Jermell Shavers

Member since 2019 · 295 posts · 159 votes

6y

@Nick Rutkowski. Me personally I wouldn’t tell her regardless and if she finds out it shouldn’t effect you as you control how much income is coming in and why should she you’re done she gets her child support and alimony that’s all she needs she wants to be greedy claim your expenses

Jim K.

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes

6y

Introduce Bill to your friends Donny and Ivanka. Fly them to Moscow and put them all up in a suite in the Ritz Carlton. You can find women amenable to all kinds of fun and games really cheap hanging around the back of the Kremlin. Send them up, sit back, and let the cameras in the room record it all.

With just this one-time investment, in a couple of years you'll own half of Texas and control DC.

Wesley W.

Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes

6y

I think @JD Martin and others have it right. Any income/business ventures that occur after the divorce is finalized and alimony/child support is set is no business of Hillary's. She should realize by that point that her moment has passed and she should slink back into obscurity, if she is even capable of doing that.

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

6y

@Nick Rutkowski How much he pays for child support and alimony is not linked to his current income. If he won the lottery a year after the divorce, it would all be his money. All Hillary (love the names) needs to know is that Bill is paying what was mandated by the divorce.

Paul Bame

Fleming Island, FL · Member since 2020 · 15 posts · 11 votes

6y

@Nick Rutkowski

I believe the child support issue could vary by state. So contact an attorney.

Anthony Wick

Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes

6y

@Nick Rutkowski

Now hold up about being "honest" with Hillary. Hillary has every right to ask the courts to adjust her child support or alimony. Bill has no obligation to do that for Hillary. If Hillary asks, Bill has every right to not answer. That is up to the courts to decide. But, of course, Bill should not attempt to hide any income or assets from the courts. That will absolutely get you a larger penalty and in trouble than it is worth. I have been in a very similar "predicament". At no point in time did I alert my ex that I received a bonus, a raise, or rental income. Of course, as my taxes will attest to, my rental income is more of a rental loss each year. My brother on the other hand? Well, his ex seemed to be taking him back to court every year to raise that child support.

Anthony Wick

Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes

6y

As a follow up, I do believe people are wrong to state; "once the divorce is final, that's it". Nope. Not by a long shot. The courts retain jurisdiction over said divorce. I knew a man that had to pay alimony for 10 years. After about the 8 year mark, his ex got into a car accident and it paralyzed her. Reduced her ability to make a living. She went back to court, and that 10 years of alimony was changed to payment for her life. And child support can absolutely be changed, as often as the Judge wants it to change. Do not ever underestimate the power of a Judge. Nothing is final, unless they say it is. And then, it might not be final if another Judge comes along and says it isn't.

Wesley W.

Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes

6y

Originally posted by @Anthony Wick:

As a follow up, I do believe people are wrong to state; "once the divorce is final, that's it". Nope. Not by a long shot. The courts retain jurisdiction over said divorce. I knew a man that had to pay alimony for 10 years. After about the 8 year mark, his ex got into a car accident and it paralyzed her. Reduced her ability to make a living. She went back to court, and that 10 years of alimony was changed to payment for her life. And child support can absolutely be changed, as often as the Judge wants it to change. Do not ever underestimate the power of a Judge. Nothing is final, unless they say it is. And then, it might not be final if another Judge comes along and says it isn't.

Wow. This just goes to show you how illogical the court system is.

OP

Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes

6y

@Anthony Wick

Yeah Bill lives in NY the state known for illogical BS. I wouldn’t be surprised if he had to go back and then get taxed on top of his child support.

Anthony Wick

Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes

6y

Here's my question. How come I cannot claim child support on my taxes? It is money that I never have access to. The recipient of said child support gets a tax free payment. I get to pay taxes on money I never saw. Then again, beginning in 2019, if you get divorced and have to pay alimony, then that payment is not tax deductible either.

I actually do know the answer to this. The person paying child support or alimony is clearly the higher income earner. Therefore, the government/IRS know the higher earner will be in a higher tax bracket, and more taxes will be paid on this income. I don't like it.