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Asset Protection Trusts As Pre-Divorce Planning

By Rob Lambert - Email Editor

Date: 11-Oct-2007

Dear Subscriber:

When the economy started on a downward spiral, I knew that we would get an upturn in requests for Asset Protection Planning. I didn’t have a clue that so many would be from people contemplating marriage, or those contemplating ending it. Bottom Line: Financial security is the KEY to many marriages. This is a sad, but true fact.

Regular readers can stop now because you know that a solid Asset Protection Trust is some of the best pre-marriage planning because it works. You can also stop reading because you know just how jaded I am. For those of you in doubt, read on if you are in need of a good laugh and a bit of pre-marital truth.

An unmarried woman posts on Craig’s List:

THIS APPEARED ON CRAIG’S LIST

What am I doing wrong?

Okay, I’m tired of beating around the bush. I’m a beautiful (spectacularly beautiful) 25-year-old-girl. I’m articulate and classy. I’m not from New York. I’m looking to get married to a guy who makes at least half a million a year. I know how that sounds, but keep in mind that a million a year is middle class in New York City, so I don’t think I’m overreaching at all.

Are there any guys who make 500K or more on this board? Any wives? Could you send me some tips? I dated a businessman who makes average around 200 - 250. But that’s where I seem to hit a roadblock. $250,000 won’t get me to central park west. I know a woman in my yoga class who was married to an investment banker and lives in Tribeca, and she’s not as pretty as I am, nor is she a great genius. So what is she doing right? How do I get to her level?

Here are my questions specifically:

- Where do you single rich men hang out? Give me specifics-bars, restaurants, gyms.

- What are you looking for in a mate? Be honest guys, you won’t hurt my feelings.

- Is there an age range I should be targeting (I’m 25)?

- Why are some of the women living lavish lifestyles on the upper east side so plain? I’ve seen really ‘plain jane’ boring types who have nothing to offer married or incredibly wealthy guys. I’ve seen drop dead gorgeous girls in singles bars in the east village. What’s the story there?

- Jobs I should look out for? Everyone knows - lawyer, investment banker, doctor. How much do those guys really make? And where do they hang out? Where do the hedge fund guys hang out?

- How do you decide marriage vs. just a girlfriend? I am looking for MARRIAGE ONLY.

Please hold your insults - I’m putting myself out there in an honest way. Most beautiful women are superficial; at least I’m being up front about it. I wouldn’t be searching for these kind of guys if I wasn’t able to match them - in looks, culture, sophistication, and keeping a nice home and hearth.

AN INTELLIGENT MORTGAGE BANKER RESPONDS:

I read your posting with great interest and have thought meaningfully about your dilemma. I offer the following analysis of your predicament. Firstly, I’m not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said, here’s how I see it.

Your offer, from the prospective of a guy like me is, plain and simple, a crappy business deal. Here’s why. Cutting through all the B.S., what you suggest is a simple trade: You bring your looks to the party and I bring my money. Fine, simple. But here’s the rub, your looks will fade and my money will likely continue into perpetuity…in fact, it is very likely that my income increases but it is an absolute certainty that you won’t be getting any more beautiful!

So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you’re 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35, stick a fork in you!

So in Wall Street terms, we would call you a trading position, not a buy and hold…hence the rub…marriage. It doesn’t make good business sense to “buy you” (which is what you’re asking) so I’d rather lease. In case you think I’m being cruel, I would say the following: If my money were to go away, so would you, so when your beauty fades, I need an out. It’s as simple as that. So a deal that makes sense is dating, not marriage.

Separately, I was taught early in my career about efficient markets. So, I wonder why a girl as “articulate, classy and spectacularly beautiful” as you has been unable to find your sugar daddy. I find it hard to believe that if you are as gorgeous as you say you are, that the $500K hasn’t found you, if not only for a tryout.

By the way, you could always find a way to make your own money and then we wouldn’t need to have this difficult conversation.

With all that said, I must say you’re going about it the right way. Classic “pump and dump.” I hope this is helpful, and if you want to enter into some sort of lease, let me know.

This is Rob again. Although this might be a bit extreme, don’t think that it doesn’t have some serious nuggets of truth. Most marriages end in divorce, and I can’t help but think that many of the reasons are financial.

Don't fall for this trap. If you are bringing assets to a marriage, please protect them.

Have a healthy and protected week.

Rob Lambert

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ABOUT THIS EDITOR:

Rob Lambert, Founder and former law professor is considered to be foremost expert on tax compliant asset protection structures. A contributing editor to Lexus Nexus debtor creditors series of law books Rob's passion is implement client wealth plans that stand the test of time and hold up under duress.

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