Shocking developments. Jon Gosselin claimed ex-wife Kate Gosselin “stole” more than $100,000 from their kids’ trust fund, while she said she simply “borrowed” the large amount for living expenses, a source told In Touch about a complaint Jon filed in 2018.
The exes previously set up a trust account for their eight kids — twin daughters Madelyn and Cara and sextuplets Aaden, Collin, Joel, Alexis, Hannah and Leah — where their earnings from appearances and promotional events would be kept safe until they reached the age of 18.
However, Jon claimed he noticed a large sum totaling over $100,000 was missing from the trust accounts when he gained custody of Hannah and Collin and saw their bank statements, the insider says. In Touch confirmed the former Jon & Kate Plus 8 star filed the complaint on March 22, 2018.
Kate acknowledged she withdrew $50,000 from her kids’ trust two times. She claimed she “borrowed” the cash “to survive,” adding that she needed it to “meet her and the children’s expenses.” That same year, the Kate Plus 8 alum purchased a $750,000 lakeside North Carolina home.
The Dancing With the Stars alum admitted in the testimony that she also borrowed money from a corporation she jointly owned with her kids in order to furnish her home. At the time, Kate claimed she did not earn any income in 2019.
Her last reality television appearance was a six-episode series called Kate Plus Dates, which aired in summer 2018. She reportedly made $40,000 per episode for the short series. These days, Kate now works as a nurse in North Carolina but has also made money from authoring four books and gets paid to make public appearances.
Kate reasoned during the case that she had spent thousands of dollars on her children’s education out of her own pocket. “I mean I paid $387,000 for their private school tuition out of our income, not the trust over the years,” she reportedly said in the documents. “So, I mean, I’m not looking to collect that, but I borrowed $100,000 from the kids’ trust. And it owes me $387,000 technically.”
The judge reportedly ruled in favor of Jon in 2021, citing that there was “no evidence of repayments” or that Kate did not earn any income.
“If these truly were loans there should be evidence of repayments sometime in the future,” the judge reportedly wrote, adding that “evidence does not support mother’s argument that her earning capacity is zero.” He also ruled that she was liable to pay child support.
The Philadelphia native was reportedly found to be in contempt of the court and ordered to pay $1,500 attorney’s fees to Jon, who was also given control of Hannah and Colin’s trust accounts.
Kate filed a counterclaim in 2019, alleging that the courts had committed an error about her lack of income. The case was dismissed in November of that year. A rep for Jon confirms In Touch‘s sourcing.
“You can’t just live off your kids’ money,” the Couples Therapy alum said. “Parents are not supposed to withdraw any money from these accounts without permission and without drawing up paperwork that they will pay it back, but she has produced no paperwork and no payments have been made.”
As for their kids, “Hannah and Collin are really mad” at their mother, Jon said, adding, “Now Hannah and Collin are 18, it’s up to them to file a civil suit against her to get the money back.”
Kate’s lawyer declined to comment when reached by In Touch.
Have a tip? Send it to us! Email In Touch at firstname.lastname@example.org.