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By Katherine Fung
Senior Writer
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Former First Lady Melania Trump could be the one to save the New York businesses of her husband former President Donald Trump.
This week's sweeping ruling against Donald, his sons Donald Jr. and Eric, and the Trump Organization has put the Trump family at risk of losing the New York real estate empire that Donald built over decades. Tuesday's decision from New York Justice Arthur Engoron stripped the Trumps of control over some of their signature properties that helped create the former president's early image.
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Finding that the Trump Organization submitted financial statements that "clearly contain fraudulent valuations that defendants used in business," Engoron canceled the business certificates that the company uses for several properties in New York state. And if Trump is eventually barred from operating business in the state, he'd likely have to transfer or sell his New York portfolio.
But legal experts say Trump could still keep his hands on those properties with the help of family members like Melania, or his eldest daughter Ivanka, both of whom were removed from the New York case and are thus not subject to Engoron's ruling.
Marcel Kahan, a New York University law professor, told the Washington Post that while Donald will "almost certainly" sell off his New York properties, "He could have a company that is owned by Ivanka, or other members of his family. They are not subject to this order."
"Look, Trump can just transfer all his properties and businesses in NY to Melania. Problem solved," attorney Ron Filipkowski wrote on X, formerly Twitter, on Tuesday. "I'm sure he can trust her because she really loves him unconditionally."
Newsweek reached out to the Trump campaign via email for comment.
Trump could also transfer his New York properties to Ivanka, who was originally named as a defendant in the case, but later called as a witness in the case against her father and his company. It remains unclear whether her role in the case was settled by Tuesday's ruling or if her testimony was used for remaining parts of the case.
But Melania may also be looking to separate herself from her husband. Recent speculation suggests that Melania is looking for more money and property from Donald in the case of a divorce.
This week, Page Six reported that Melania renegotiated her prenuptial agreement with Donald as he and his presidential campaign move closer to the 2024 election and that a trust for their shared son Barron and property are among top items for the former first lady. Those reports also come as Trump is embattled in a number of costly legal fights against his four indictments, the defamation case he lost to columnist E. Jean Carroll and his recent defeat in the Trump Organization civil case.
"Trump may be broke by the time the presidential election is over," Former federal prosecutor and President of West Coast Trial Lawyers Neama Rahmani told Newsweek. "He lost his defamation case to Jean Carroll and will have to pay more damages for defaming her again. He's already been found liable in the New York civil fraud case, lost his New York business license and has to dissolve his companies, and may get hit with a judgment of tens or hundreds of millions of dollars.
"He's spending tens of millions of dollars to defend himself in four separate criminal cases, and the trials haven't even started yet. Trump has been a fundraising machine, but that well will dry up if he loses the election again," Rahmani said.
"It's not surprising that Melania and Ivanka and protecting themselves and separating their money from the former president. Of course, his creditors may argue that those transfers are fraudulent and designed to avoid paying Trump's debt if Trump is ever unable to do so himself."
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