This guy got destroyed by the system
My friend Richard got destroyed by the system.
As a financial advisor in Sacramento, California, he spent years building a thriving firm and has even landed a few celebrity clients.
Richard did well for himself. Successful. Married. Wonderful kids. Financially secure.
But back in 2008 things started to turn sour.
His wife left him and took the kids, along with half of everything else.
The divorce forced the liquidation of many of their assets, including a substantial investment portfolio he had built up.
Richard didn’t want to sell; by the time the divorce was being fought, it was 2009 and the stock market had crashed.
But Richard had no choice. They liquidated and suffered major losses.
Most painfully, since Richard’s business was so successful, the judge ordered him to pay alimony of nearly $20,000 per month.
It didn’t matter that, practically overnight, most of his new business had dried up due to the Great Recession.
Thus began the long indentured servitude known as alimony.
The idea behind alimony is to make sure that the ex-spouse can maintain a comfortable standard of living while s/he gets rebuilds a life and financial base.
It shouldn’t be abused as a lottery ticket.
In Richard’s case, it’s been 7+ long years and nearly $2 million in alimony paid. But the payments never stop.
Even though the kids are now grown and out of the house, his ex-wife has zero incentive to go out and find a job to support herself.
Why would she bother working hard when she can do nothing and collect $20k from her ex-husband?
Yet due to the length of time they were married, and California’s ridiculous legal code, there’s no end in sight for Richard’s alimony payments.
So Richard has the government taking 50% (between federal and state income tax) from his left pocket, and his wife taking nearly a quarter of a million dollars per year out of his right pocket.
Naturally if he stops paying either one of them he’ll face the long arm of the law.