Billionaire divorce uncovers secretive world of trusts in South Dakota

CNBC ^ | 05-06-2020 | Robert Frank

[NRx]

During their more than 30 years of marriage, Texas billionaire Ed and Marie Bosarge accumulated an unusual collection of treasures.

They owned 12 homes, including five properties in Maine and a private island in the Bahamas. They had a 180-foot sailing yacht with its own grand piano. They bought a $5 million Egyptian mummy. Marie bought some of Marilyn Monroe’s personal effects, including her furniture, dresses and bras.

“It was over the top,” Marie said of their lifestyle.

Now, instead of living the high life, Marie Bosarge fears going under. When Ed filed for divorce in 2017, Marie discovered that almost all of the couple’s property — from the homes and island to her jewelry and even some of their tableware — had been put into a special trust that shielded the assets from any claims. Rather than getting half of a fortune she estimated to be worth more than $2 billion, she may wind up with little or nothing after paying her legal bills.

In a lawsuit filed in 2018, Marie claims that the trusts “were created and used by Ed to hide income and property and to hold what would otherwise have been personal income and assets.” She claims the purpose of the trusts and the transfer of assets between the trusts was “to cut Marie out of her rightful share of the community estate.”

Attorneys for Ed Bosarge — who founded high-speed trading firm Quantlab — declined to comment on the case, citing confidentiality rules. Marie’s attorney also declined comment. But in court papers, Ed’s attorneys have claimed that the assets are owned and controlled by the trust, not by him, and are therefore not marital property. They say the total value of the couple’s marital property, which would be subject to division, is about $12 million.

[terart]

agree with you...she was married 30 years! This isn’t some fly by night marriage for money...she absolutely deserves at least what her state allows in division of property for whatever they bought/earned during that time.