Jessica Simpson has gone from pop singer and reality show host to mogul of a $1 billion fashion empire. Her biggest money mistake?
“For some reason I thought of my first marriage,” Simpson told CNBC’s “Closing Bell” on Thursday.
Simpson divorced Nick Lachey in 2005 after their three-year marriage was documented on the MTV reality show “Newlyweds: Nick & Jessica.” The show helped make them both household names.
CNBC host Kelly Evans was not surprised by Simpson’s response: “That’s actually a common answer, believe it or not.”
NerdWallet isn’t surprised, either. Frequency of money arguments is the greatest predictor for divorce, a Kansas Statue University study shows. As Steve Branton recently wrote on NerdWallet’s “Ask an Advisor” platform, all too often “love doesn’t conquer all.” If you own all or part of a business, have a huge gap in income or even just plan to buy a home together, a prenuptial agreement can prevent big cash woes down the road.
“A big benefit of a prenup is the precedent it sets for honest, frank communication. Better to clear the air now than try to do so later on after conflict arises,” Branton writes. You can read his complete checklist for prenup needs here.
Business partnerships also would do well to sign a kind of prenup agreement, known as a “buy-sell,” say financial advisors Doug Bend and Alex King. “As with virtually any marriage or relationship, things can change, and you need to be prepared for that possibility – before the honeymoon is over,” they wrote on Ask an Advisor.
Simpson didn’t reveal what money lessons she took away from her breakup, but she clearly learned something: Her clothing company is worth $1 billion and her personal net worth is reported at $150 million.
“I always say I’m ready for another billion,” Simpson told CNBC when asked where she sees herself in the next five to 10 years.
Image via iStock.