When Jeff Bezos divorced MacKenzie Scott in 2019, the divorce was, at least outwardly, amicable.
“I’m grateful for [Scott’s] support and for her kindness in this process and am very much looking forward to our new relationship as friends and co-parents,” the then-55-year-old Bezos posted on X at the time.
Scott posted the same day.
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“Grateful to have finished the process of dissolving my marriage with Jeff with support from each other,” she wrote on X. “Looking forward to [the] next phase as co-parents and friends.”
But there’s no question that Bezos walked away with more equity. In the same post, Scott says she handed over all her interest in both the Washington Post and Blue Origin to Bezos.
She also allowed Bezos to take 75% of their joint Amazon stock, leaving her with just a four percent stake in the company compared to Bezos’ 12%. As part of the deal, she also agreed to act as a proxy voter for Bezos, meaning she no longer had any voting rights on the stock she owned.
Here’s some background on the deal — as well as how gender can impact divorce proceedings.
Washington’s laws value equality between divorcing partners
Jeff Bezos and MacKenzie Scott lived in Seattle, Washington while they were married. Washington is a community property state, meaning that anything that a couple gains after marriage is a community good that belongs to both parties.
Bezos started Amazon in 1994, just one year after he and Scott were married. In fact, Bezos himself has talked about how important Scott was to his success with the company.
“MacKenzie, you know, she had married this stable guy working on Wall Street, and a year after we got married, I went to her and said I wanted to quit my job, move across the country, and start this internet bookstore,” Bezos told Business Insider in 2018. “Even before she could say, ‘What’s the internet?’ she said, ‘Great — let’s go!’”
His stock in Amazon is considered community property by Washington. Since Bezos founded Blue Origin in 2000 and bought the Washington Post in 2013, they also qualify.
During divorce proceedings, Washington state judges will attempt to make a “just and equitable distribution” of the divorcing couple’s community property. This could mean splitting the property equally between the two, but it doesn’t have to; judges are allowed to give one person 55% of the community property and another 45%, for instance.
Even if the judge decides to split community property evenly, that doesn’t mean that every individual piece of community property will be split in half. If it did, a divorcing couple would have to sell their home to split it 50-50.
Instead, judges will try to balance the value of goods overall. For example, a judge might give one person a $500,000 house, the other a $100,000 boat, and use jointly-owned savings and stocks to balance the difference.
There’s a lot we don’t know about Bezos’ and Scott’s agreement. For example, she could have kept the majority of the real estate the couple owned together. Or, while we know the couple didn’t have a prenuptial agreement, they could have entered into a postnuptial one once Amazon took off.
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On average, women face worse financial outcomes after divorce than men
Whether Scott got an equal share or not, she’s not struggling for money. Her stake in Amazon was worth around $36 billion at the time, enough to make her the third wealthiest woman in the world at one point. (After the divorce, Jeff Bezos was able to maintain his status as the wealthiest person in the world, with no qualifiers, until 2021.)
Many women aren’t so lucky after divorce. Despite the popular assumption that divorce proceedings favor women over men, women actually fare worse than men long-term after divorce.
In 2012, the Government Accountability Office found that women’s income after a divorce fell by 41% on average. In comparison, men’s income only fell around half as far.
Another study by the University of Amsterdam found that, while men’s well-being fared worse after divorce in the short-term, women fared worse long-term, facing higher losses in household income and greater risks of poverty.
Around 33% of women with both a home and children lose that home after divorce. Around 20% enter poverty because of divorce.
Add to these that women are much more likely to be custodial parents than men, and that the majority of people who are supposed to receive child support do not get their full payment.
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Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing and fact-checking financial content.
