Divorcing in Trump's Washington? Good luck

Axios

2 days ago

When Washington couples split up today, they're facing a super volatile party in the courtroom.
No, not their ex — it's President Trump's policies.
The big picture: Divorce is already stressful. But add federal layoffs, a saturated job market, an uncertain real estate landscape and a possible recession? Buckle up, divorce lawyers tell Axios.
Zoom in: Trump's fast-paced decision making is particularly impacting Washingtonians' finances — and money is a big sticking point for couples who are splitting.
"When the income takes a dip, how do you calculate alimony? How do you calculate child support? How long is the decrease in income going to last? Nobody knows," says lawyer Jessica Markham, whose client list includes many former and current federal employees.
"When the economy is not doing well, you have less options on how to problem-solve untangling two people's financial lives."
What they're saying: Some of Markham's clients who've been fired from the federal government, forced to retire early, or are scared of layoffs are now requesting short- or long-term alimony from their exes — something she says wouldn't have happened a year ago.
"It's such a new dynamic to their relationship," she says. "They were previously in a very secure position, and in those cases, it's harder to settle, because it's so shocking."
Other wannabe-divorcés are delaying the process because they want more security about their employment status before they put themselves on the hook for something they can't afford.
Housing is another issue. Some divorcing feds are worried about buying a new single-person pad because they're unsure of their future.
One of Markham's federal clients initially had trouble getting a mortgage because the lender was worried they wouldn't be a safe borrower — their agency employer was doing layoffs, Markham says.
Others are holding onto homes to see if Washington's real estate market dips, making it cheaper to buy their former spouse out, says lawyer Maria Simon.
Also a problem: Child care. Now that feds are back in the office full time, some are asking the ex for help with day care or a nanny and getting pushback, says Simon.
"[The partner is saying,] 'Well you never needed it before. Why do I have to pay for it now?'"
Zoom out: There's no tax bracket that isn't affected.
Lawyer Cheryl New says her Washington power-player clients are worried about how Trump's policies are affecting the valuation of their assets, businesses and investments, and how that will affect their divorce settlements.
"[They're thinking,] 'Am I going to be able to pay my employees? Am I going to be able to afford the four homes that I bought and the three kids in the private school?'" New says.
The intrigue: New's client list includes some divorcing politicos in Trump's orbit, she tells Axios — who are equally freaked by the effects of his policies on their own breakups.
"What you see in the press and what you see on television is not precisely what I'm seeing behind closed doors," she says. "[They're] just as worried, if not more, because there's some insider information there."
New says she also represents lawyers who left their jobs at some of the white-collar law firms working pro bono with Trump — and who are now worried about how their lack of income will affect their divorce proceedings.
What we're watching: Simon anticipates that custody battles will begin to feature former feds who have to leave the DMV to find work in a less saturated market — and want to take the kids with them, she says.