Divorce court records reveal Dr Dre’s assets, checking account balance and average monthly income … and a settlement may have been reached!
Dr. Dre and Nicole Young married in 1996. They have two children together. She filed for divorce in June 2020.
During their 24 years of marriage, Dre has achieved previously unimaginable heights of success as a musician, producer and entrepreneur.
We have been tracking Dre’s income since 2007. Based on our calculations, between 2007 and 2020, Dre generated personal income of just over $ 1 billion. His biggest revenue windfall came in 2014, when he and Jimmy Iovine sold Beats By Dre to Apple for $ 3 billion.
The acquisition, which was announced on May 28, 2014, called for Apple to pay Dre, Iovine and their private equity partner The Carlyle Group $ 2.6 billion in cash and $ 400 million in shares. Dre and Jimmy each owned 25% of Beats at the time of the sale, which meant they had both generated $ 750 million in pre-tax revenue. After tax, they both made around $ 450 million on the cash portion of the sale.
I bring up all of this because, when Nicole filed for the divorce, she claimed that they did not have a prenuptial agreement. In fact, technically speaking, she claimed they had a marriage contract at the start of their marriage, but he supposedly tore it up a few years later. Like, I physically tore it up and threw the pieces in the trash.
Dre recalled it differently. In December 2020, his legal team submitted the 1996 marriage contract to divorce court. This marriage contract clearly stated that all property acquired during their marriage would be separated, as inâ¦ what he would earn would be hers and what she would earn would be hers.
On the other hand, the marriage contract allowed Nicole to apply for spousal support. And boy did she ask for spousal support. After Dre filed the marriage contract, Nicole applied for spousal support. The amount she asked for?
$ 2 million PER MONTH
She also requested a one-time payment of $ 5 million to cover her legal fees.
A judge ended up ordering Dre to pay $ 300,000 in temporary monthly support.
Fast forward a year and this battle is one step closer to resolving it.
This week, Dr. Dre submitted a detailed account of his financial situation. This is usually a sign that the two warring parties are aiming for a settlement agreement and now it is enough for them to determine exactly what is to be won.
Below are the seven juiciest financial details we just learned from Dre’s filing:
# 1) Dre’s average monthly income over the past few months was $ 228,000. This works out to about $ 2.7 million per year. He earns about $ 84,000 per month from stock dividends.
# 2) In the past year, Dre sold $ 73 million in Apple shares.
# 3) In 2020, Dre paid himself $ 4 million from his personal LLC.
# 4) Last year, Dre’s total expenses were $ 17 million. He spent $ 3.2 million on mortgages, $ 2.3 million on “entertainment,” $ 250,000 on groceries, $ 177,000 on charitable donations, $ 156,000 on health care, $ 104,000 on vehicles and $ 21,000 in mobile phone plans. He also gave his children just under $ 8 million.
This is where it gets really good.
# 5) According to his file, Dr. Dre currently has $ 182 million in his checking / savings accounts. Specifically:
# 6) The total shares currently held by Dr. Dre are $ 6 million, which implies that he has sold the vast majority of his Apple shares. This corresponds to point 2 above.
#seven) In addition to his stocks, checking / savings accounts, Dr Dre has an additional $ 269 million in âreal and personal propertyâ. These are usually real estate, art and other durable goods.
When you add up, Dr. Dre’s assets are currently worth around $ 470 million.
According to the most recent court order, Dre will continue to pay Nicole monthly support payments of $ 300,000 until a final settlement is reached. This settlement will either be a large lump sum payment, a large monthly support payment, or a combination of the two. It is up to the divorcing parties to decide which route they wish to take once they have decided to reach a settlement.
According to sources who reported to Rolling Stone, the couple leave with a lump sum of …
$ 100 million
The Rolling Stone source claims that according to the settlement agreement, Nicole will soon be leaving the couple’s Malibu mansion in the coming weeks. She would also keep a Rolls Royce, a Range Rover, an Escalade limousine and a Spyder motorcycle along with all of her jewelry.
There is one last question. How is Dre worth “only” $ 470 million? Shouldn’t he be close to billionaire status? Well, first of all, we’ve known for years that despite what you might have read on a thousand websites, Dr Dre is not and never was a billionaire.
On the flip side, I will admit that in recent years we have estimated his net worth to be between $ 600 million and $ 700 million. In our defense, I still assert that Dre’s net worth could have been $ 600-700 million if you factor in the value of his future royalty stream and, more importantly, the rights to his catalog. of songs. I don’t think the $ 470 million figure includes the value of his lifetime rights. Considering he owns tracks from Eminem, Snoop Dogg, 50 Cent, his own music and dozens of other artistsâ¦ his music catalog is probably worth hundreds of millions of dollars based on recent comparable sales.