The Hulk Hogan divorce teaches us all a great deal about personal finance. I don’t normally follow the comings and goings of the big stars. But I recently read about Hulk Hogan’s divorce, and once I understood the circumstances surrounding it I saw the great financial lessons to be had.
What’s so important about Hulk? First of all, this guy all but invented the “Frankensteiner,” “Flying Headbutt” and my personal favorite, the “Running Powerslam.” That’s impressive! Also, let’s be honest…if somebody makes an action figure out of you, you must have something important to say.
Enough with the persona, let’s get down to business. How can you improve your financial situation by studying the details of this dynamic duo’s split?
First, examine the reason for the divorce.
According to Mrs. Hulk, the big guy had serial affairs and she couldn’t take it anymore.
The Result:
Mrs. H hauled Hulk to court and walked away with a monthly alimony settlement of $40,000 a month. When she’s done with him, he’ll be lucky if he has enough money or a high enough credit score to buy a house on the North Pole.
Primary Lesson Learned:
Aside from the bad karma of doing dirty deeds such as this, consider the financial fallout of doing something really stupid before you do it.
A recent post I read over at Get Rich Slowly said that one of the costliest things you can do is get a divorce. Granted, the average cost of divorce is nowhere near $40,000 a month — but it will set you back big time; I guarantee you that. And one sure-fire way to end up in divorce court is to play the field when you should be on the bench.
I admit that sometimes divorce is inevitable. If your relationship is headed in that direction, be prepared. This is something Hulk didn’t do and it cost him big.
The happy Hulks were married for 24 years and they seemed to get along fine. As you know, Hulk is a tame, refined person. It’s just a shame that he allowed his animal instincts to put him in the doghouse – and maybe the poor house too. Who’d a thunk it?
Secondary Lesson Learned: Marry the right person.
Sometimes people divorce because they simply realize they made a mistake when they said, “I do.” It obviously doesn’t have to involve infidelity.
Love is one element in a good marriage, but it isn’t the only requirement. Does your beloved understand how money works? What are their feelings about debt and spending? How do they invest? What are their career plans?
Bonus Lesson Learned
Consider writing your own vows – and add the following:
Do you promise to stay current on all your debts? Maintain a credit score you can proud of? Max out your retirement plan contributions? Track your spending every month?
Now, when your fiance says, “I DO” to these questions, you know you’ve got someone worth marrying! Of course, this may be a little extreme, but divorce is even worse. Talk about finances, debt, spending, career, retirement and other financial goals before you tie the knot. Start creating a financial plan together before it’s too late!
Extra-Special Bonus Lesson Learned:
Talk to your spouse. Ask what’s going on with them and tell them what’s going on with you. Do this daily.
Believe it or not, Hulk only found out about the divorce when a reporter from the St. Petersburg Times called and asked for his comment about it. The dumb lug had no idea. Does that sound like a couple that communicates well? I don’t think so.
Make it a point to ask your partner what’s on his or her mind every day. Do it with intention and be interested in what you hear. It may save you $40,000 a month or spare you from being on the wrong end of a “Flying Powerslam” someday. If for no other reason, do it for the kids.
Julie McNeil says
Hey, I am currently making a YouTube video about something simular, would you mind me using you as a reference? I’ll be sure to give you a link within the video.
Cruise Vacations says
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Jenni.
Roxy says
At some point do you think you could write an article about pre-nups? What do they mean financially and for how long?
I know you don’t keep up with celebs, but Tom Cruise divorced Nicole Kidman because the pre-nup was about to expire. So much for love and commitment?
admin says
Yes….Roxy….it’s on my list….
Nea says
$40k/month is $480/yr. So if he earns $1 million, he won’t have much left over (after tax).
I’m not too worried about Hulk. My guess is he earns a lot more than $1 million/year anyway. Having said that, I’ve never met anyone who has had a divorce and said it was cheap. It’s usually financially devastating for anyone involved.
Financial Samurai says
Nice post. However, $40,000 is nothing for a man who probably pulls in $1,000,000 a year no?
Neal says
Monevator – another reason I need someone to give me a “Frankensteiner”! You are right. I meant to link to a different article that discusses how most millionaires are wealthy because they stay married. I looked again and couldn’t find that one. Apologies.
Monevator says
Neal, is that link to GRS right? I can’t see anything about divorce in the piece you’ve linked to.
Just so you know — maybe it’s what you had in mind. 🙂
Neal says
Emily….excellent point. Divorce is a life changer – financially and emotionally. Fortunately, I have a wife who agrees to keep me around…one day at a time.
Emily @ Under$1000PerMonth says
And divorce really costs more than the monthly alimony. You lose your spouse, who could/should be your best friend. This, I’m sure, will lead to more erratic spending decisions.
Neal says
Pru,
U got me there…..I don’t follow pro wrestling. I got carried away….I probably deserve a smack down!
prufock says
Interesting article, but you’re not really a big wrestling fan, are you? I don’t think Hogan has ever even performed a frankensteiner or flying headbutt, much less “all but invented” them.
Steve Miller says
Good article!
As unromantic as it might seem, before I got married, I made a list of character traits that I felt were important for a successful marriage. One trait was “Not a materialist.”
I’d seen the havoc that materialism could wreak in a marriage. Fortunately, no materialist would be attracted to me, since, for example, I drive purely functional vehicles with no compulsion to pursue the appearance of wealth.
My parents did very well with their finances. Dad made good money; mom didn’t spend it. Actually, I should say, she would spend it on assets that increase in value. They had a general policy of planned neglect toward fancy clothes and fancy cars. It wasn’t disciple. They simply had no interest in all that.
While divorce is one killer of fortunes, another is marrying a materialist. I believe that either “The Millionaire Next Door” or “The Millionaire Mind” presented research on the marriages of self-made millionaires. Good topic of study.
J. Steve Miller
Neal says
Justin,
Coming from you, I take that as a huge compliment!
Justin says
Great Post. Amazing how you can take something like a divorce from a wrestling icon and turn it into a finance lesson. goes to show you are a great teacher too!
Neal says
Thanks Thom….I’ve had to go a few rounds in the ring myself over finances.