Alimony Substitution Trust

  

This situation might come up if you're rich and you get divorced (we're looking at you, Ben Affleck). Instead of writing a check to your ex every month like a dirty peasant, you set up a trust with enough income-producing stuff (bonds, property, high-dividend stocks, Justice League residuals, etc.) to pay the agreed upon alimony payments. The money comes out of the trust rather than out of your bank account.

There are tax advantages to this system: since the payments come out of income generated by the assets, then (theoretically anyway) you are capturing tax-free the gains of the investment, and the dividends it pays, rather than having the costs come directly out of a cash-only bank account, which doesn't go up all that much over time. Hopefully, you can stay sort of as rich as you were before, despite the divorce, and don't have to start begging Kevin Smith for guest roles.

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