In September the divorce trial began between billionaire Harry Macklowe and wife Linda Macklowe. Before the trial began, Manhattan judge Justice Laura Drager issued a warning. Telling the litigants that “Your personal lives, your business, your assets, everything will be displayed for everyone to see… What I foresee is a very difficult, extended trial.”
The two sides disregarded the warning and launched into a trial. They are now fighting over assets worth around $2 billion. These assets include real estate and art.
Harry Macklowe is claiming that he is bankrupt, and owes his wife nothing. Linda Macklowe denies this.
Linda’s tax expert explained that Harry Macklowe’s negative net worth is a fiction. Page Six reports that the negative $400 million net worth is based on deferred capital gains taxes that will never come due. This is because “industry experts utilize favorable rules to perform a legal Shell Game with debt to avoid paying Uncle Sam. The only loser to be very blunt is the IRS.”
As the trial continues, the exploits of the rich and famous are examined.
One can only assume that revenge is a motivating factor for this suit.
(Views are my own and do not reflect the views of any organization.)