Former President Donald Trump and his children are set to testify in a civil fraud trial in New York. The trial, brought by New York Attorney General Letitia James, alleges that Trump overstated his wealth for years on financial statements to secure loans and deals. Trump and his sons, Donald Trump Jr. and Eric Trump, were already expected to testify, but the timing was confirmed after Judge Arthur Engoron ruled that Ivanka Trump must also appear. The trial threatens to disrupt the Trump family's real estate empire and could strip Trump of some of his corporate holdings and properties like Trump Tower. Trump denies any wrongdoing and has called the trial a politically motivated sham.

Ivanka Trump had previously been dismissed as a defendant in the case, but prosecutors believe her past role as executive vice president of the Trump Organization makes her testimony important. Trump's lawyers and Ivanka's lawyer argued that she should not have to testify, as she moved out of New York and left her Trump Organization job in 2017. However, state lawyers argued that she still had relevant information and that she remained financially and professionally connected to the family business. Judge Engoron sided with the state, citing documents that showed Ivanka Trump's continued ties to businesses in New York and her ownership of Manhattan apartments.

The trial began earlier this month and is expected to conclude before December 22. In the lawsuit, James accuses the Trump family of fraudulently inflating the value of their assets to obtain favorable treatment from banks and insurance companies. James is seeking at least $250 million in fines and a permanent ban against Trump and his sons from running businesses in New York. The trial will also determine other potential punishments for Trump. So far, the harshest punishment has been $15,000 in fines for violating a gag order imposed by Judge Engoron.

The trial took an unexpected turn when Trump was called to the witness stand to testify about an out-of-court comment he made. The judge found his testimony to be "not credible" and imposed additional fines. Trump's control of his companies may still be at risk, but he does not immediately need to dissolve the legal entities he uses to manage his properties.

The trial gained energy with the testimony of Michael Cohen, a former lawyer and fixer for Trump who has turned against him. Cohen's testimony was the first time he and Trump had been in the same room in five years. The trial's central issue has already been decided, making the proceedings mostly uneventful until this week. However, the testimony from Trump and his children is expected to create a blockbuster stretch in the trial.