How to SAVE money with a divorce

Discussion in 'Luxury and Lifestyle' started by Pekelo, Jan 10, 2019.

  1. Pekelo

    Pekelo

    Let's say you are a board member or CEO of a company whose stock is due to tank badly and you can't sell it legally because of insider trading laws. Well, there is a work around called DIVORCE:

    reddit.com/r/wallstreetbets/comments/aeb3nq/how_to_insider_trade/

    Lou Pai an officer of ENRON knocked up a striper and got a divorce just before the company's stock went into a death spiral. The divorce court actually made him to sell the stocks. He sold at $72, 4 months later the stock was at $1. Timing is everything. He made 270M and although later he was fine 31M, and he had to share the 270M, he still came out way ahead:

    "So, let's do the math. Allegedly made $270mil. Forced to liquidate shares for a divorce, 270/2=135mil. Settled with the SEC (probably "'no admission of wrongdoing", but barred from being a boardsitter for five years) for $31.5 mil. Walk away with ~100 mil (after legal fees, which were probably at least a couple of million). Not bad for a decade and a half's worth of "work"."

    "He sold his stock at $72, two months later it was $15, four months later, it was $1 and they filed for bankruptcy soon after"
     
  2. Why bother with marriage? Just find a woman you hate and buy her a house."
     
    DepthTrade likes this.
  3. I stopped reading when I saw the part about him banging a stripper. The rest doesn't matter :).
     
  4. Visaria

    Visaria

    Do u have these things called taxes on capital gains in the US?