How will Kim Kardashian West and Kanye West divide up their multimillion-dollar real estate empire?
The new year has started with it’s first A-list break up, as Kim Kardashian West and Kanye West are reportedly close to filing for divorce. So, how will their massive portfolio be divided?
2021 has started with it’s first A-list celebrity couple close to parting ways, as Kim Kardashian West and Kanye West are reportedly close to filing for divorce.
The high-profile couple are going to call it quits after six years, according to Page Six. The pair have four children, but appear to be leading very different lives.
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Kardashian West is reportedly intent on continuing to work on her prison reform project, while West’s political ambitions, including a bid to become President, have kept him rather busy.
Other sources have told the NY Post that Kanye West has become increasingly frustrated with the Kardashian family’s reality TV star lifestyle.
But what inquiring property minds really want to know is this: How will their massive real estate portfolio be divided?
Jennifer Lenz, a real estate agent at Dolly Lenz Real Estate in New York City, has been privy to many high-profile splits and told Realtor that divorce settlement details typically hinge on the prenups and other contractual obligations that were in place before the marriage.
“However, most prenup terms well exceed the final settlement in order to get a sign-off on the divorce, and the properties are divvied up to avoid the appearance of a fire sale,” Ms Lenz told Realtor.
For example, one billionaire couple that Lenz’s firm worked with had a $10 million prenup, but the ex-wife was able to get a $60 million settlement to secure her signature — which included two homes and money to start a new business venture.
In the case with Kim and Kanye however, money like this is probably no big object. Kardashian West is the richest of her famous family, and the couple’s combined wealth exceeds US$3 billion.
California divorces sometimes turn out to be quite equitable as all assets acquired during the marriage are to be divided 50/50. In California, division of homes purchased while together belong to both parties and are divided equally as well, according to Bruce Ailion, a real estate agent in Atlanta.
We take a look at Kim and Kanye West’s biggest real estate assets, and how the properties may be divided.
Hidden Hills estate
The couple’s mansion in the star-studded community of Hidden Hills in Los Angeles was purchased for US$20 million in 2014. Kardashian West reportedly wants to own it outright since this is the one place their children are settled into and call home.
It’s also near her mother Kris Jenner’s home and her sister Kourtney Kardashian’s place.
“Courtney want to minimise the impact of divorce on the couple’s children, so often this means the custodial spouse will retain use of the marital residence,” Mr. Ailion told Realtor.
However there could be a sticking point. Kardashian West owns the land in and around the house, but it is complicated by the fact that Kanye owns the actual structure.
The couple also poured a ton of cash (upward of $20 million) into an extensive renovation over the years. West engaged Belgian designer Axel Vervoordt to handle the rehab and installed a completely white, monastic-style aesthetic throughout the home.
“Since West oversaw the redesign and owns the home, a sensible compromise would be for him to keep it and for her to build on the surrounding land for herself and stay in the home via some type of rent-back until the project is done,” says Cedric Stewart, a real estate agent with Keller Williams Capital Properties.
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Wyoming ranch
It’s hard to see Kardashian West feeling at home in a very remote part of Wyoming — so it’s likely that the Monster Lake Ranch, purchased in 2019, seems to have West’s name written all over it.
“The Wyoming property will go to Kanye as this is where he plans to build his technology, design, and innovation epicentre,” says Stewart.
The spot, which features two houses, eight cabins, plus several barns for horses, will require a huge effort to transform it into a liveable space for a celebrity of West’s level.
Not only is the Wyoming ranch pretty much in the middle of nowhere, but transporting contractors and all the materials needed to build in a barren part of the USA is a giant headache.
West’s plans for this compound apparently include a 10-bedroom, nearly 5,000 sqm mansion and two 1,000 sqm underground garages, which could cost more than $50 million, according to real estate experts.
House next door to Hidden Hills
This fixer-upper ranch home isn’t exactly posh, but it’s directly next door to the couple’s Hidden Hills compound, bringing their total property ownership in this area to 3.2 hectares. They bought it in 2019 for $3 million and apparently had plans to create a guest compound here and live off the land, growing organic vegetables and fruit.
This property has four bedrooms, a pool, and gardens, plus a horse barn.
Inner-city Chicago home
The music star, who came from humble beginnings in Chicago’s inner city, bought back his childhood home in Chicago in May 2020 for just US$225,000.
The house looked to be in rough shape when it was purchased, with dirt and trash strewn about.
Just days Kanye had been named as a billionaire by Forbes magazine, the father of four decided to take back his childhood home after it was abandoned and riddled with trash, broken windows and demolished doors.
The home will need at least $60,000 worth of repairs, as it is completely falling apart, with it being considered that it may be cheaper to demolish the home rather than fix it.
Two-acre property in La Quinta, California
The couple also own an undeveloped two-acre parcel of land that has a whopping price tag of $6.3 million.
The plot was reportedly purchased through a trust at the end of 2019.
Located two hours from Los Angeles in La Quinta’s Madison Club (a golf and tennis community), this area is a playground for the rich and famous.
It’s also close to the location of the Coachella music festival where West performed in 2019. Kris Jenner and Kardashian’s little sister Kylie Jenner also have homes nearby, so this property may become a tustle in the end.
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