Billionaire Philanthropist MacKenzie Scott Files for Divorce From Second Husband

Billionaire philanthropist MacKenzie Scott, the former wife of Amazon.com Inc. founder Jeff Bezos, has filed for divorce from her second husband, according to court records.

Ms. Scott filed a petition for divorce from Dan Jewett in King County Superior Court in Washington state, according to a filing dated Monday. She had married Mr. Jewett, then a teacher at a private Seattle school, last year. She and Mr. Bezos divorced in 2019 after 25 years of marriage.

Mr. Jewett agreed to the divorce, according to court records. The couple already had a separation contract, which specifies how their debts and liabilities would be divided, the records said.

Ms. Scott and her lawyer, as well as Mr. Jewett and his lawyer, couldn’t immediately be reached for comment. Amazon didn’t immediately respond to a request for comment on behalf of Mr. Bezos.

Ms. Scott has given away billions of her wealth since divorcing Mr. Bezos. In 2019, she joined the Giving Pledge, pledging to give away a large chunk of her wealth. Some of the organisations that received donations since Ms. Scott’s and Mr. Jewett’s marriage thanked both of them.

In a nine-month period, Ms. Scott donated $3.86 billion to 465 different organisations, including the Boys & Girls Clubs of America and the Planned Parenthood Federation of America.

Ms. Scott has a net worth of $28.9 billion, according to the Bloomberg Billionaires Index, making her the 39th richest person in the world. That number has been falling as she has been donating much of her wealth. At one point in 2020, her net worth was as high as $67.4 billion, according to the index.

Both Ms. Scott and Mr. Jewett live in King County in Washington state, according to the divorce filing. The couple was married in the state of California.

Ms. Scott helped Mr. Bezos in founding Amazon. She owned a roughly 2.9% stake in Amazon as of February of this year, according to FactSet, but Mr. Bezos retained those shares’ voting rights.

She and Mr. Bezos have four children together.

Superannuation is the first thought when it comes to self-funding retirement. Yet it is hardly the only option for doing so.

Just as we have a choice in how and where we work to earn a living, many people also have a choice in how to fund their retirement.

It is possible and sometimes preferable to leave your superannuation untouched, allowing it to continue growing. Some or all of your income can come from alternative sources instead.

Here are some alternatives you can consider.

1. Downsize your home

For many who own their own homes, the equity accrued over decades can eclipse the funds in superannuation. However, it’s theoretical money only until it is unlocked.

Selling up the family home and downsizing – or rightsizing – for retirement allows you to pocket those gains tax-free and simultaneously relocate to a more suitable home with lower upkeep costs.

Up to $300,000 from the proceeds can be contributed by a downsizer to boost your super, and the remainder can be used to fund living expenses or actively invested.

Remember that while the sale proceeds of your home are tax-free, any future profits or interest earned from that money will be taxable.

2. Part-time work

Semi-retirement allows you to gradually step into retirement. You continue earning income and super while working part-time, keeping a foot in the workforce while testing the waters of your new found free time.

Doing so also offers scope to move into different roles, such as passing on your skills to future generations by teaching/training others in your field of expertise, or taking employment in a new area that interests you and is closer to home.

3. Self-employment

Retirement from a full-time position presents a good opportunity to pursue self-employment. With more time and fewer commitments on your hands, you have greater scope to turn your hobby into a business or leverage your professional skills and reputation as an external consultant.

Also, for the self-employed and those with a family business, director’s loan repayments from the company are typically tax-free, offering a potentially lucrative source of

income and a means of extracting previous investments into the business without selling your ownership stake.

4. Investments

Rental property income (from residential or commercial properties) can supplement or even provide a generous source of income. The same applies to dividends from shares.

These are likely to be more profitable if you own them well before retirement.

Income that is surplus to your everyday needs can be reinvested using tax-effective strategies to grow your future returns.

5. Family trust

A family trust could be used to house investments for yourself and other relatives, building intergenerational wealth.

Trusts allow funds to be allocated to beneficiaries to manage marginal tax rates and stretch the money further, you have control over how income is split between different family members and have flexibility for changing circumstances.

6. Selling collectables

You may not realise the value of items you have collected over the years, such as wine, artwork, jewellery, vintage cars, and antiques.

Rather than have them collect dust or pay to store them, they could be sold to fund your living costs or new investments.

Where possible, avoid selling growth assets in a depressed market – wait until you can extract maximum value.

7. Obtaining a part-pension

Part-pensions are not only possible but valuable in making your superannuation stretch further. They still entitle you to a concession card with benefits in healthcare, transport, and more.

Take these savings even further by requesting pensioner discounts with other companies, on everything from utilities to travel and insurance to eating out.

Also, don’t overestimate the value of your assets as part of the means test. It’s a common mistake that can wrongly deny you a full or part-pension.

Plan ahead

However, you ultimately fund your retirement, planning is crucial. Advice would hopefully pay for itself.

Understand your spending and how those habits will change before and during retirement, then look to investments that offer the best fit.

Consider a mixture of strategies to diversify your risk, manage your tax liabilities and ensure ongoing income.

Above all, timing is key. The further ahead you plan, the more time you have to embrace additional opportunities and do things at the right time to maximise their value. You’ve worked hard and now is your chance to enjoy the fruits of your labour!

Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Find out more at www.onyourowntwofeet.com.au