EMAIL DETAILS

Sarah-

I spoke with Hunter and have some edits/comments based on that conversation. Hopefully, Hunter will be able to jump on the phone later this afternoon between 3-4pm and give any additional/final thoughts.

1) Given that we don’t know by how much the Burisma payments will be reduced and that the “Romania” payments can be irregular and/or month-to-month it might not make sense to go beyond January at this point. It would make sense though to say that Hunter should have a better sense on the income for February by X date and will be able to provide Kathleen a readout of what to expect at that time. So, delete #3 in the email.

2) Should the “Romania” money come in, there is a surplus of $4,388 that you didn’t account for and Hunter would like that allocated to him so he would have $14,388 for January. Instead of “anticipates” re: the Romania money perhaps say “believes”.

3) It should be made clear that in order to pay the dentists bill and the attorney fees, other debts and taxes are not being paid. Starting in February, Hunter and Kathleen will need to start a payment plan with the IRS which may leave less discretionary spending money.

4) I assume that given that they are still married, any support payments, both spousal and child, are post-tax? It is only after they formally settle that the tax implications for child and spousal support kick in, correct?

We can discuss more later this afternoon.

Thanks,

Eric


Eric D. Schwerin
Rosemont Seneca Advisors, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
P Consider the environment before printing this email.

> On Jan 8, 2017, at 5:19 PM, SMancinelli <SMancinelli@ainbanklaw.com> wrote:
>
> Hunter and Eric-
>
> Below is my draft email to Rebekah. I welcome any edits. If/when good to go- I will email it to her ASAP.
>
> Sarah
>
> Rebekah-
>
> I met with Hunter last week. We spent the vast majority of that time doing our best to develop an interim support and bill paying arrangement. While it is not a sustainable scenario for a final settlement, Hunter wants to develop an interim arrangement in keeping with Kathleen’s desire for him to continue to be responsible for the payment of all of their recurring monthly expenses (which ranges between $22,000 and $25,000). Hunter recognizes the bill paying responsibility has never fallen on Kathleen’s shoulders and at this juncture, he appreciates that she would prefer that not to change.
>
> Our primary goal with the proposal below is to project for Kathleen the payments that Hunter expects to receive this month and how those funds will be allocated- including funds for retainer payments.
>
> 1) On or about January 20th, Hunter will receive his salary payment of $70,000 from Owasco, PC representing his monthly fees from Burisma:
>
> Salary: $70,000
> Net pay: $39,000
> Autopays (approx): $25,000
> Remainder (approx.): $14,000
>
> Hunter proposes paying Kathleen $10,000 on or about the 20th and he would retain the remaining $4,000.
>
> 2) Hunter anticipates a $60,000 “Romania” related payment to come in before the end of the January. Should that payment be received as anticipate, Owasco, P.C. would pay out a bonus in the amount of $60,000 and there would be $34,000 remaining after taxes.
>
> Bonus: $60,000
> Net pay: $34,000
>
> From that $34,000, Hunter proposes the following:
>
> · Dr. Giannini’s bill is paid ($3,662)
> · $10,000 for Kathleen’s retainers
> · $10,000 to Kathleen
> · $6,000 to Hunter
>
> Therefore, of the possible $130,000 Hunter hopes to receive in January, Kathleen would receive $20,000 and Hunter would receive $10,000. And Kathleen’s retainer and the bill for Dr. Giannini would also be paid.
>
> Should any additional money come in above and beyond that $130,000, we will alert you to that ASAP. I can say, however, that any additional cash that becomes available will likely need to first be applied to debt/tax payments before being distributed out to the parties for their discretionary use.
>
> 3) There is not yet certainty as to what the February numbers will be at this point. Its my understanding that Hunter’s Burisma payments will be reduced to around $750,000 a year. After expenses paid by Owasco, PC that would leave Hunter with a salary payment on February 20th of $56,500 and after recurring monthly payments, would leave only $7,500 to distribute to Hunter and Kathleen. We hope to have a better idea of that figure soon and once we do we can better ascertain how to handle February.
>
> Salary: $56,500
> Net pay: $32,500
> Autopays (approx.): $25,000
> Remainder (approx.): $7,500
>
> With the goal of operating in a fully transparent manner, every week a spreadsheet will be circulated demonstrating how all of the parties funds are being spent.
>
> I understand that the majority of Hunter’s belongings were removed from the garage at the marital home. Please confirm.
>
> We trust this will be an agreeable way forward for the remainder of the month of January. We would like to turn our attention to developing a mutually agreed upon comprehensive settlement arrangement.
>
>
> Sarah E. Mancinelli, Esq.
> Ain & Bank, P.C.
> 1900 M. Street, NW, Suite 600
> Washington, D.C. 20036-3565
> (202) 530-3355 (direct dial)
> (202) 530-4411 (fax)