Failed abortion transaction
Four different readers asked me for comments on “Hedge Funder Offered $75,000 to His Girlfriend for Abortion” (Yahoo! Style) or an underlying NY Post article: “My hedge-fund boyfriend tried to bribe me to get an abortion: suit”.
My response: Given that New York family law provides for a fixed 17 percent of her defendant’s pre-tax income in child support revenue, mostly this is just some added color for Elmira Naymark’s lawsuit. If her 29-year-old defendant earns more than $360,000/year, the profitability of the child beyond $61,200/year (tax-free; $1.285 million over 21 years) will depend to some extent on judicial discretion, so highlighting the failed abortion transaction may yet have some practical significance.
Why did this transaction fail? When we interviewed lawyers for Real World Divorce we found that abortion negotiations are commonly handled by attorneys, not by a “friend” and and the mom as in this case. As with taking pills to ensure pregnancy following a one-night encounter, abortion sales tend to occur in states where collecting child support is potentially more lucrative than going to college and working at the median college graduate wage. The friend’s purported offer of “50k-75,000+” is not consistent with attorney-handled transactions, which more typically are completed at roughly 50 percent of the net present value of the child support cashflow (21 years in New York), plus the potential plaintiff’s legal fees.
[Note that the net present value of obtaining custody of the 29-year-old defendant’s biological child would be totally different in various jurisdictions around the U.S. and the world. The plaintiff would receive a maximum of about $5,000 per year in Germany, $8,000 per year in Denmark, $13,000 per year for 18 years in Nevada, and just over $20,000 per year for 18 years in Minnesota or Texas. The child’s schedule would be completely different among these jurisdictions as well, ranging from about 17 percent of the time with the loser parent in New York to a statutory 50/50 schedule in Nevada or Arizona.]
Related:
- “Child Support Litigation without a Marriage”
- “Abortion Is Found to Have Little Effect on Women’s Mental Health” (nytimes)
