How Did $1 Billion Dollar Divorcee Patricia Kluge Go Bankrupt?

When Patricia Kluge divorced billionaire media mogul John Kluge in 1990, she received a reported $1 billion dollar settlement. On June 21 , 2011, Patricia Kluge and her new husband, William Moses, filed for bankruptcy protection. How does someone who received roughly $1 billion dollars go bankrupt in just 21 years?

In their Chapter 7 bankruptcy filing with the United States Bankruptcy Court, Patricia and her husband listed assets worth $1 million to $10 million, and liabilities of $10 million to $50 million. Just shocking numbers for a woman who walked away from her divorce in 1990 with $1 billion dollars.

Where did all the money go?

After the divorce Patricia Kluge purchased a 23,000 square foot mansion, along with 3,000 acres of land, in Albermarle County, Virginia. The house, known as Albermarle House, has been foreclosed on by Bank of America.

Over the years Patricia Kluge spent a ton of money on the house. She also threw lavish party after lavish party on the grounds. If she spent $10 million dollars a year on real estate taxes, upkeep and parties, that would total $210 million dollars over the last 21 years.

$100 Million Lost on Failed Winery

Patricia Kluge, and her now husband, William Moses, also built a winery on the grounds at Albermarle House. Reportedly they spent $100 million dollars trying to make the winery a success. In April of 2011, Donald Trump bought the winery and related land assets from Patricia Kluge for $6 million dollars. That's at least $94 million more dollars flushed down the drain.

More Money Lost in Failed Housing Development

The couple also tried to build luxury homes on some of their land in Virginia. Reportedly this business venture was also an unmitigated financial disaster. Probably hundreds of millions of more dollars were flushed with this failed business venture.

Even More Money Lost on Artwork and Antiques

Patricia Kluge, who got her start in business as a soft-porn actress back in the early 1980's, also spent lavishly at Sotheby's and other auction houses over the years buying artwork and antiques from around the world.

As money problems hit the couple, Patricia began selling her collections of art and antiques, but her acumen at buying the artwork and antiques was as good as her business acumen in starting a winery and luxury home business. She lost a bundle.

In life, some people revert back to where they got started, and in Patricia's case she found herself without her shirt and clothes again, this time in the art and antiques business.

How You Can Lose $1 Billion Dollars

So if you ever somehow acquire $1 billion dollars in your life and want to blow the whole wad, here's how.

Just buy a huge mansion and thousands of acres of land. Start a couple of large businesses you know nothing about, and then sell those businesses or let the banks foreclose on you and lose almost every cent you invested.

Also buy tons of artwork and antiques for over-inflated prices, people will be really impressed by that. When you need to sell the artwork and antiques, you'll get pennies on the dollar.

Meanwhile, their are millions of people starving in the world today, some of whom will die this very day from starvation.