Billionaire Bill Gates and his wife Melinda dropped a heavy bombshell on Monday, announcing in a joint statement that they have decided to end their marriage. This surprising divorce is the second of its kind among the world's richest individuals, following the divorce of Amazon founder Jeff Bezos. The announcement of Bill and Melinda's separation after 27 years of marriage—given Gates' influence—could impact the technology industry, a wide array of businesses and real estate, as well as global health, according to Bloomberg.
**$146 Billion**
The couple, who are estimated to be worth around $146 billion according to Bloomberg's Billionaires Index, did not mention their financial plans, although they confirmed they would collaborate to continue their charitable work. In a statement posted on Bill Gates' Twitter account, the couple said, "After much thought and a lot of work on our relationship, we have made the decision to end our marriage." They added, "We have raised three wonderful children and built a foundation that works all over the world to empower all people to lead healthy and productive lives." The couple has three children, the youngest of whom is 18 years old.
**Fourth Richest Person in the World**
Additionally, Bill Gates, the co-founder of Microsoft Corp, aged 65, is ranked as the fourth richest person in the world. Melinda Gates, aged 56, is a former Microsoft executive who gained international fame and co-managed the Bill & Melinda Gates Foundation, which has already donated over $50 billion over the past two decades to combat poverty and disease. A spokesperson for the foundation stated in an email that they will remain co-chairs and trustees of the nonprofit organization. According to the statement, "They will continue to work together to shape and approve the foundation’s strategies, advocate for the foundation’s issues, and set the overall direction of the foundation."
This marks the second surprising divorce among the highest ranks of the world's billionaires in recent years, following Jeff Bezos' announcement in 2019 that he and his then-wife Mackenzie were separating.
**More Complicated**
However, Gates' and Melinda's wealth may prove to be more complex to divide than that of Jeff and Mackenzie, which was largely concentrated in Amazon stock. Bill Gates' net worth originated with Microsoft, but it is likely that shares of the software maker now represent less than 20% of his assets. Over the years, he has channeled much of his shares into the Bill & Melinda Gates Foundation, and details of his exact holdings have not been disclosed since he stepped down from Microsoft’s board last year.
**Wealth Sharing**
Gates' largest asset is Cascade Investment, a holding company he built from the profits of Microsoft stock sales and dividends, managed by Michael Larson. Through Cascade, Gates has interests in real estate, energy, hospitality, and stakes in dozens of public companies, including Canadian National Railway and Deere & Co.
Monica Mazzi, a divorce attorney and partner at Sideman & Bancroft LLP in San Francisco, stated that the big question regarding the couple's foundation and family office is how much they plan to work together moving forward. She explained, "Even in the most amicable divorces I've seen, the preference has been to split the foundation into two parts to allow for more independence and less mixing." The same principle applies to family offices, where investments could be divided into "two separate pots."
The couple resides in Washington, a community property state. This means that anything acquired during the marriage is considered equally owned by both partners, but it does not necessarily mean that the wealth will be split in half. Janet George, a family law attorney in Washington at MacKinley Irvin, noted that it's not mandatory to divide the wealth 50-50, explaining that "courts can rule more or less, depending on what is fair and equitable."
