Within a few weeks, he was exposed Former US President Donald Trump He received huge penalties from two civil trials in New York, one for $83 million for defamation against writer E. Jean Carroll, and another for $354.9 million for inflating the value of his assets on government financial statements.
The combined rulings will cost him about $438 million, and that's only part of what Trump could be convicted of through the many lawsuits filed against him.
The payments are also likely to make a significant dent in his financial portfolio.
Bloomberg's billionaires list estimated that Net Trump's wealth In 2021 it was about $2.3 billion, meaning those two provisions alone could account for nearly a fifth of Trump's net worth.
It was finances For Trump It's remarkably vague, especially since the Trump Organization is a private company, meaning it doesn't have to file public financial reports.
But here's what we know about what the American billionaire and potential presidential candidate will have to pay, and how it will affect his finances, according to a newspaper report."Guardian" British.
Bankruptcy is unlikely
While $438 million is no small sum, for Trump to declare bankruptcy, he would have to prove that the judgment outweighs his assets, which is highly unlikely.
During his testimony before prosecutors in the fraud trial in April 2023, Trump said he had more than $400 million in cash.
However, last year, Forbes reported that Trump has since invested the bulk of his money in bonds and Treasuries, while keeping a small portion in stocks and mutual funds.
After his convictions, Trump may be forced to sell a large portion of those investments.
Donald Trump (AP)
Will he have to sell his properties?
The big question is whether Trump will have to touch anything in his real estate portfolio.
Trump has received a cash boost from selling his properties before, as he sold his golf club in the Bronx last year.
In 2022, he completed the sale of the Old Post Office Building in Washington, D.C., which had been converted into a hotel.
While court documents showed that the sale of the old post office netted $131.4 million before taxes, according to the New York Times.
This will be a difficult decision for a man who only a few years ago claimed to be worth $10 billion. This pride in his wealth has recently been used against him.
pay cash
In closing arguments in Carroll's trial in January, her lawyers told the jury that they should punish Trump with higher damages specifically because he claims to be so wealthy.
In parallel, Trump will still have to pay the court, even as the appeal continues. Although Trump is awaiting multiple appeal decisions, he will have to give the court the money needed to hold it. If he wins any of his appeals, he can get his money back.
Trump has few options in pushing the court. He could pay everything he owes now in cash, or he could try to get an appeal bond, which means he wouldn't have to pay all the cash up front in exchange for a premium and put up collateral.
In the Carroll case, which he filed in May 2023, Trump set aside the $5 million he owed in cash, saving him about $55,500 in what would have been bond payments.
Although Trump may prefer to pay the judgments in cash, it is unclear whether he has enough to avoid bonds this time.
Donald Trump (AP)
Eyes on his campaign money
Meanwhile, Trump is rich in campaign funds, but spending it on personal legal expenses will be complicated.
He has been enthusiastically fundraising to cover his legal troubles, perhaps because he incurs large legal fees for his civil and four criminal trials.
But what Trump could pay for the use of campaign funds is unclear, especially since federal law prohibits candidates from using campaign funds for personal use.
On the other hand, the former president did not hesitate to use his campaign funds in some of his trials. The Associated Press reported in October that Trump's Save America political action committee (Pac) paid $37 million in legal fees, more than half of the committee's total spending.
Trump was the Republican candidate who received the most donations last fall, raising $45.5 million in the third quarter. Ron DeSantis, who dropped out of the race in January, raised the second-largest amount, with about $30 million.
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