The Complex Legal Process of Seizing Donald Trump’s Assets: A Breakdown
The legal team of former President Donald Trump and the New York Attorney General’s office are intensely working to secure a bond before the deadline on Monday to cover the multimillion-dollar civil fraud judgment against Trump. The ruling made by Judge Arthur Engoron in February requires Trump to pay over $454 million, which increases to approximately $463.9 million when including the debts owed by his sons, Eric and Donald Jr., the Trump Organization, and the accrued interest.
In case Trump fails to secure the required bond and decides to appeal, experts suggest that the attorney general’s office will initiate the lengthy legal process of seizing Trump’s assets. These assets could include buildings, houses, cars, helicopters, planes, and bank accounts. Although Trump has requested a smaller bond or none at all due to the potential irreparable harm of selling properties at fire sale prices, the court is yet to decide.
If Trump cannot secure the bond, officials will have to strategically determine which assets to seize, primarily focusing on his bank accounts and then his properties. Seizing money from Trump’s accounts necessitates the attorney general’s office or the New York City Sheriff or a US Marshal to present a court order to the bank manager. The funds are then transferred to the attorney general’s account.
On the other hand, taking possession of properties is a more complicated process. Once state prosecutors decide which property they wish to seize, they provide the sheriff’s office with an execution order and pay a fee of $350. The sheriff then posts a notice in three places, while the attorney general’s office must advertise it four times. In 63 days from the execution order being given to the sheriff, a public auction for the property is held.
The seizure process might be more challenging with Trump’s out-of-state properties, and state prosecutors have already taken steps in New York to seize his golf course in Briarcliff Manor as well as his private estate called Seven Springs. The attorney general’s office filed judgments in Westchester County on March 6, a week after Engoron’s ruling.
A significant legal performance might revolve around how much of Mar-a-Lago is considered Trump’s home, potentially protected by law. If Trump does not win his appeal, bankruptcy remains an option, though he wishes to avoid it due to the potential discharge of debt.
If Trump fails to come up with the necessary funds, his legal options will significantly decrease. “You don’t want him to file bankruptcy then the debt will be discharged,” said attorney Alden B. Smith. Trump and his team could attempt selling smaller properties to satisfy the debt. Harry Litman, a former deputy assistant attorney general, stated that “at the end of the day, he’ll do anything before letting Tish James put on a metaphorical padlock on 40 Wall Street.”
Despite the approaching deadline, some experts question why a grace period was given to Trump. “There’s no reason for courtesy when he owes $455 million dollars to the people of the state of New York after being found persistently liable for fraud,” Pollock said. The former president recently posted on Truth Social that he currently has almost $500 million in cash, which the attorney general, James, aims to seize. However, Trump’s attorney clarified that he was not referring to cash on hand but rather campaign funds.
Trump has already had to secure a nearly $92 million bond to satisfy the judgment against him in the E. Jean Carroll defamation case while appealing. Litman stated that there might be less money available than Trump claims, and regardless, it represents a devastating blow for the former president.
