When Kanye West's Bad Wealth Suggested Departing from the Kardashians May Have Been a Very Bad Idea

Kanye West's departure from the "Billionaires Club" shocked the entertainment industry and his fans. In three years, the rapper's net worth has plummeted from over a billion dollars to $400 million. While Kanye's divorce from Kim Kardashian may have had a role, it is important to look at the chain of events that led to his financial decline, throwing doubt on his decision to leave the Kardashian empire.

Kanye hit a high point in his financial life before his divorce from Kardashian began. In April 2020, he finally made Forbes' renowned "Billionaire List." However, this success was short-lived, as his net worth plummeted once Kardashian filed for divorce in early 2021. Despite the existence of a prenuptial agreement, parting from the Kardashian brand appears to have contributed to West's financial loss, as reported by The Things.

Kanye's financial woes worsened in 2022 as a result of a slew of controversial anti-semantic comments and his deteriorating mental state. Losing relationships with major brands such as Adidas and Gap sparked his financial troubles.

Adidas, a longtime collaborator with West, severed ties after he made antisemitic statements, calling West's behavior "unacceptable, hateful, and dangerous." The company said in a statement, "Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness." This act alone cost West an estimated $1.5 billion, removing him from the coveted "Billionaires List."

Other corporations, including Gap, Balenciaga, JP Morgan Chase, MRC, and Foot Locker, quickly followed suit, terminating ties with the artist. This enormous departure from business relationships put Kanye in a weak financial situation, as four of his five income sources were either seriously weakened or shut off by the end of October 2022.

Adidas, Gap, Balenciaga, JP Morgan Chase, MRC, CAA, Foot Locker, TJ Maxx, Home Goods and Marshalls, Christie's, Peloton, Madame Tussauds London, his legal representation, and The RealReal had all distanced themselves from Kanye. These high-profile withdrawals had a knock-on effect on Kanye's earnings, leaving him with few revenue streams.

Contrary to common assumption, Kanye's net worth has declined due to more than only his divorce from Kardashian. The couple, whose total assets were estimated at $2.1 billion, had a prenuptial agreement to ensure a more equitable allocation of funds and property. However, the divorce deal required West to pay $200,000 per month in child support to Kardashian for their four children (North West, Saint West, Chicago West, and Psalm West), a number calculated based on the family's luxurious lifestyle.

Without his collaborations and partnerships, Kanye's current net worth is $400 million, which includes his music catalog, cash and liquid investments, and a 5% share in Kim Kardashian's shapewear firm, SKIMS.

Editor's note: This article was originally published on January 20, 2024. It has since been updated.