Hedge Fund Boss John Paulson’s Wife Seeks $1 Billion In Divorce, Claims He’s Hiding Millions In Secret Trusts

Billionaire hedge fund manager John Paulson is being accused of hiding a portion of his income in various trusts amid divorce proceedings from his wife Jenny Zaharia Paulson.

John Paulson, 66, is the founder of Paulson & Co. and is best known for earning billions of dollars by betting against the U.S. subprime mortgage lending market, which reportedly earned himself and shareholders $15 billion in the wake of the 2007-2008 global financial meltdown.

His current net worth is $4.6 billion according to Forbes, and his hedge fund reportedly manages much less money than its $38 billion peaks in 2011 as it was converted to a family office in 2020. He filed for divorce from his wife of over 20 years in September of last year, and Jenny says she only heard about it when news reports broke.

In the suit, which was filed Thursday, Mr. Paulson is accused of plotting to “insulate assets acquired during the course of their marriage from Mrs. Paulson’s reach and thereby to deprive her of her fair and equitable share.” The suit alleges that he established a “secretive web” of three trusts through the 2000s of which he was the sole beneficiary.

According to Jenny’s accusations, the first trust account was created in 2001, just a year after they were first married. She is also naming J.P. Morgan Trust Co. in Delaware and trustee Jeffey Bortnick in the suit. She is seeking at least a billion dollars in damages from her soon-to-be ex-husband.

Jenny allegedly turned down a hefty settlement, but her attorney claims she was only offered a monthly allowance. The divorce is also complicated by Mr. Paulson’s $200 million real estate portfolio which includes properties in Palm Beach, Aspen, Southampton and Puerto Rico.

The case will be heard at the New York State Supreme Court in Manhattan.