Dwayne Wade Facing Foreclosure – Celebrity Money Problems

master — Sun, 21 Dec 2014 18:45:48 +0000

Dwayne Wade Facing Foreclosure – Celebrity Money Problems master Sun, 12/21/2014 - 13:45

If you're a fan of hoops, you know the name Dwayne Wade. The 6'4” NBA guard plays for the Miami Heat and rakes in nearly $19 million a year in salary alone and another $11 million annually in product endorsement fees. He ranks #55 on the Forbes list of most powerful celebrities and is married to actress Gabrielle Union who herself has a net worth of around $12 million. So with all this money floating around, why is Wade facing foreclosure on a $1.2 million home?

That house price may seem extravagant to most of us, but for someone making $30 million a year, that's a drop in the bucket. The home in question is a nearly 8,000 square foot home in the South Holland area of Chicago where he lived with his then-wife Siohvaughn Funches and their two sons. The answer to this financial conundrum is a D-I-V-O-R-C-E. The break-up of a marriage causes money problems for celebrities and regular folk alike.

Dwayne Wade's Marriage Woes and Money
Wade and Funches were high school sweethearts that married in 2002. They split five years later and then battled over their finances for another three years before getting their official divorce in 2010. In 2011, Wade got sole custody of their two children. Funches got the Chicago house, along with the remaining $200k mortgage balance but she also got monthly payments and cash that worked out to about $5 million.
Despite monthly support payments of roughly $25,000 a month in spousal support, it seems his ex did not make the mortgage payments on her home and now Wade is listed in the foreclosure action since he's likely still listed on the original loan agreement. When the foreclosure news broke, Wade's attorney released a statement saying:

“Dwayne Wade and his ex-wife Siohvaughn Funches reached a financial settlement in July 2013, which included Ms. Funches being awarded the Chicago home in which she resides. Mr. Wade had provided a very generous settlement to Ms. Funches to continue to live a wonderful lifestyle and maintain the home mortgage payments he previously paid before the settlement was reached. As the sole homeowner, Ms. Funches defaulted on the mortgage and the home is now under foreclosure with the bank. We will take the necessary measures to affirm Mr. Wade is not responsible for the home's foreclosure since he was absolved of all financial responsibility when Ms. Funches was awarded the house.”

When Divorce Documents Don't Change Finances
No matter what the lawyer said in his statement, Wade may, in fact, still be financially on the hook for the home. Why? Unless his wife refinanced after the split (which it appears likely did not happen), he is still financially culpable. There are two different components at play here. Even though the divorce papers awarded the home and associated mortgage payment to Funches, that doesn't undo the original loan documents which means Wade can be pursued for any deficiency amount resulting from the foreclosure and will likely take a hit to his credit as well.

How to Protect Yourself from Money Problems After Divorce
The best way to protect yourself from money problems after a divorce is to address them before your split is finalized. In Wade's instance, he should have made sure his ex-wife refinanced the house so that it was her asset and responsibility and he wasn't tied to it. If you are considering a break from your spouse, you need to get your finances sorted out pronto. If one of you is keeping the house or a car that's not paid for, refinancing is the way to go to get a clean financial break. And if you're deep in debt that you can't pay, filing bankruptcy prior to filing divorce can give you both a fresh financial and personal start.

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celebrity bankruptcy

Celebrity Bankruptcy: Flex and Shanice Tell How They Overcame Financial Disaster

master — Fri, 12 Dec 2014 18:21:58 +0000

Celebrity Bankruptcy: Flex and Shanice Tell How They Overcame Financial Disaster master Fri, 12/12/2014 - 13:21

Today in celebrity bankruptcy news, we bring you a tale of two married celebs that used bankruptcy to conquer their debt and get a new lease on life. In 2001, actor and comedian Flex Anderson was cast in a starring role in the UPN show One on One. His wife Shanice was an R&B hitmaker who was Grammy nominated for her single I Love Your Smile. They were pulling in more than a million bucks a year but, five years later, they were struggling and eventually were evicted from their home. Today we'll look at how these two used bankruptcy to get a fresh start and have remade their lives.

Job loss and income slow-down
Many of our clients have experienced a bout of unemployment or income decrease due to an accident, illness or layoff. Unfortunately, when your income takes a nose dive, your bills usually stay the same. This is exactly what happened to Flex and Shanice. His hit show ended in 2006 and without another opportunity waiting, they were living on residuals from reruns and royalties from her past songs. Problem was, they had a pricey house they bought at the height of their earnings and had a lifestyle to match their blossoming stardom. From expensive clothes and jewelry to a driveway full of luxury cars, they were maxing out their income.

Foreclosure and bankruptcy
They had refinanced their home to try and make ends meet then drained their retirement accounts to stay afloat as long as possible. Scraping to make ends meet ended in 2010 when they were notified their home was being foreclosed on. This was their rock bottom point. They filed bankruptcy and liquidated their assets including the jewelry and cars to get a rental home. They also joined forces with other cash-strapped family members to share rent and expenses. Unlike many that let financial problems pull their family apart, the Andersons used the crisis to come together. By sharing expenses, they were able to regain their financial footing.

Recovering from financial disaster
After using bankruptcy to help recover financially, the duo are exploring new Hollywood projects. They've recently begun shooting a reality series for OWN (the Oprah Winfrey Network) called Flex and Shanice where they will discuss their financial problems. Shanice says people have approached her to say, “Your story is so much like mine. It's helping me through my hard time.” Both Flex and Shanice admit they overspent but now have firm new policies in place to make sure they don't get in trouble again.
They no longer use credit cards – a big change for Flex who would go to Burberry and drop $10k on his American Express card for gifts for Shanice. She says, “If we can't pay cash for it, we just have to wait on it. We use a debit card as opposed to a credit card.” Flex says they bought two used cars for cash and pawned their wedding rings to help cover expenses. Flex says there are many people in Hollywood that are living back at home with parents or sleeping in their cars, but says it's a secret.

The lesson for everyone
Maxing out your income is never a good idea but if you've got back debts piling up, it may be unavoidable. But rather than letting your finances continue to deteriorate, why not look for a solution to get meaningful debt relief? Filing a Chapter 7 bankruptcy can eliminate unsecured debts such as medical bills and credit card bills. Filing a Chapter 13 bankruptcy can get you extra time to catch up on secured debts like your mortgage and car loan.

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celebrity bankruptcy