[@alux] 15 Reasons Why RICH People Get Divorced

Link: https://youtu.be/9DxyalPalZY

Short Summary

This video discusses 15 reasons why rich people get divorced, ranging from marrying for money to religious realignment, and highlights the financial and ego-driven factors that can contribute to marital breakdown among the wealthy. It also reveals a strategic tax divorce as a bonus, a method used by ultra-high-net-worth individuals to minimize taxes on significant financial events.

Key Quotes

Okay, here are 5 quotes extracted from the YouTube video transcript, chosen for their insightful, surprising, or impactful nature:

1. "It's harder to go through a divorce than it is to become a millionaire because the pain of losing is bigger than the satisfaction of gaining. So, you got to think twice before you go there."
2. "Love marriages surprisingly have the highest rate of divorce at 40 to 50%. Because love fades away or one of the people falls in love with somebody else."
3. "To get rich, you need to be obsessed with building wealth. This means for extended periods of your life, you put all your time, energy, and effort into building something. And here's the dark part. Involuntarily, your identity becomes tied to the performance of your business. You start to believe you're only as good as you can perform."
4. "Men who rely entirely on their wives income stray three times more than equal earning men. The lowest infidelity rates occur when men and women are equal earners."
5. "Most of the rich people like to invest in things where the value keeps going up. But if early on you got married based on looks and looks alone, well, looks are a deflationary asset."

Detailed Summary

Here's a detailed summary of the YouTube video transcript, organized into bullet points:

Key Topics:

• The video explores the reasons why wealthy individuals get divorced, highlighting differences from the divorce reasons of less affluent individuals.
• It emphasizes that divorce is often more painful than achieving wealth, and that one should carefully consider marriage.
• It presents 15 common reasons for divorce among the rich, followed by a bonus move: strategic tax divorce.

Reasons for Divorce Among the Rich (15 Reasons):

1. Marrying for Money and Checking Out:

   • Gold digger marriages have a limited lifespan.
   • Financial expectation mismatches are common (20% of ultra-rich divorces).
   • Once financial security is achieved, unhappiness with the partner can lead to divorce.
   • Love marriages have the highest divorce rates (40-50%), while arranged marriages have the lowest.

2. Demanding Work Schedules and Time Apart:

   • Wealth comes with significant responsibilities and demanding work.
   • Frequent travel and stress negatively impact marriages.
   • Couples with 200+ travel days per year divorce 30% faster.
   • Long commutes (over 45 minutes) increase the likelihood of divorce by 40%.

3. Emotional Disconnect:

   • Over-reliance on technology creates emotional distance.
   • High net worth therapists report that 56% of affluent couples feel invisible.
   • Conversations become logistical, and spontaneity disappears.
   • Couples become like roommates, with separate bedrooms, friends, and interests.
   • Lack of investment in the relationship post-marriage

4. Financial Disagreements, Abuse, or Failures:

   • Rich people fight about money just as much, if not more, than others.
   • Money becomes a scoreboard and a tool for control.
   • Wealth building can become an obsession, tying identity to business performance.
   • Economic downturns and business failures can trigger identity crises and lead to divorce.
   • Billionaires may depress valuations before divorce proceedings to minimize asset division.

5. Not Investing in the Relationship Post-Marriage:

   • Effort is put into dating but neglected after marriage.
   • Partners "let themselves go" physically and emotionally.
   • Lack of "just us" dates increases divorce odds.
   • Outsourcing tasks diminishes the emotional connection between partners.

6. Infidelity on Speed Dial:

   • Wealth provides more opportunities and easier access to affairs.
   • Anonymity, entitlement, and access to VIP experiences facilitate cheating.
   • Infidelity rates increase significantly among millionaires and billionaires.
   • Men who rely entirely on their wives' income are more likely to cheat.
   • Infidelity rates are lowest when men and women are equal earners.

7. Having Kids Too Early or Too Late:

   • Having children is stressful and puts a strain on relationships.
   • Parents under 25 divorce 50% more often.
   • First-time parents over 45 divorce about 28% of the time.
   • Early parents sacrifice personal growth.
   • Parents sacrifice personal growth.
   • Parenting an autistic child significantly increases divorce rates.

8. Not Having Sex:

   • The more money you have, the less active you are in the bedroom.
   • Sexless marriages are more prevalent among the wealthy.
   • Divorce rates skyrocket if sex falls below 10 times per year.
   • Rich people are more likely to initiate divorce if the marriage is sexless.
   • Separate bedrooms are a gateway to a sexless marriage.

9. The Midlife Model Upgrade:

   • "Gray divorces" (after age 50) are increasing.
   • Many remarry a much younger partner (10 years younger on average).
   • Wealthy individuals seek to recapture their youth after decades of sacrifice.
   • Divorcing someone to upgrade and find the person who is currently worth the most in terms of looks.

10. Treating Marriage Like an Underperforming Asset:

    • Wall Street mentalities track ROI (Return on Investment) on everything, including love.
    • Executives may exit a marriage if net life return dips negative.
    • High net worth individuals are twice as likely to view marriage as an investment.
    • Love that is audited becomes amputated
    • CEOs and Financial Experts use the same logic with marriage as they do with business.

11. Narcissism and Ego Wars:

    • Higher social class is linked to inflated entitlement and narcissistic traits.
    • Marriages with narcissistic individuals are more likely to end in divorce.
    • Narcissists need for validation overrides the emotional needs of their partner.
    • Power struggles and emotional manipulation affect children negatively.

12. Criminal Cases and Public Image Damage Control:

    • Allegations against public figures can damage stock prices and endorsements.
    • Imprisonment significantly increases the likelihood of divorce.
    • Reputation is crucial to maintaining wealth and future earning potential.
    • Legal separation is used as a PR strategy to shield assets and gain leverage in divorce settlements.

13. Gambling and Addictions:

    • Compulsive gambling often leads to divorce.
    • Substance abuse strains relationships through lack of trust, poor communication, and safety concerns.
    • Addiction exacerbates existing relationship problems.

14. Domestic Abuse:

    • While statistically more prevalent in poorer communities, domestic abuse exists among the wealthy but is often concealed through NDAs, lawyers, and PR teams.
    • Abuse cases are often disguised as "unreasonable behavior" in court.
    • Abuse allegations can be weaponized for financial and reputational gain.

15. Religious Realignment:

    • Switching or abandoning religion triples divorce odds.
    • Shifting beliefs fracture shared values and life narratives.
    • In high-net-worth circles, religious affiliations are often tied to philanthropy and public image, making religious changes a public issue.

Bonus Move: Strategic Tax Divorce:

• Divorcing before a liquidity event (IPO, major capital gains) can save 7-8 figure sums in taxes.
• Married couples are taxed on combined assets, but divorce allows individuals to claim lower rates.
• Prenups may include clauses for strategic divorce.
• Strategic divorces can also shield assets from creditors, lawsuits, or market crashes.
• The marriage may be restarted after the liquidity event.