We all know being rich and famous doesn’t always guarantee financial stability. Overspending and bad financial management—and/or the financial mudslide that often occurs in divorces or the end of a successful career—tend to be bad news for some of the richest faces you know.
In recent years, Mel Gibson has been making the news for all the wrong reasons, including divorce, violence and anger issues, and financial problems. Gibson’s real estate portfolio took a huge hit as a result of his divorce (in which he lost half his fortune); he took a loss on a property or two, and lost four Malibu properties to foreclosure in 2010.
Eleven-time NBA All-Star Allen Iverson must not have saved up for his post-career life. The former athlete stopped paying the mortgage on his 6-bedroom Denver estate and lost it to foreclosure last year.
Maybe 15 homes was too many. Although the Academy-Award winning star earns $20 million a film, Nic Cage still managed to owe around $14 million in back taxes. The IRS foreclosed on four of Cage’s homes; one included his Vegas mansion of more than 14,000 square feet, six bedrooms, seven-and-a-half bathrooms, a 16-car underground garage, a theater, and an elevator. Whoever bought it for just under $5 million sure scored, since Cage originally bought the house for $8.5 million. On another home, Cage had six loans totaling $18 million. Repeatedly borrowing against equity probably wasn’t the best idea — especially since there were no takers in an attempt to auction off the house.
Six-time Grammy-winning singer of “Un-Break My Heart” and “You’re Makin’ Me High” lost two homes and filed for bankruptcy in 2012, listing unpaid debts of over $50 million. Braxton suffered a huge financial hit when a heart condition forced her to cancel a series of Las Vegas shows in 2008. The lesson? Always plan for emergencies.