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How did Whitney Houston lose her fortune? Her US$250 million net worth from her music empire crumbled and the I Wanna Dance with Somebody icon owed money over property and even asked friends for cash

Whitney Houston performing during the 2004 World Music Awards at the Thomas and Mack Center in 2004, in Las Vegas, Nevada. Photo: Getty Images

Once, it was unthinkable that “sex, drugs and rock ‘n’ roll” and Whitney Houston could be mentioned in the same breath, but by her own admission, that was her “business” after working hard during the early part of her career.

Houston, who made an estimated US$250 million with her music and sold more than 170 million albums, was among the world’s top artists in the 1980s and 1990s. But by the time of her death in 2012, the legendary singer – who is now the subject of a new biopic I Wanna Dance with Somebody – was a shadow of the glamorous icon everybody knew.
Whitney Houston performing at the Brit Awards, at the London Arena, in 1999. Photo: AP Photo
A decade-long decline in front of the public resulted in her fortune dwindling to such an extent that she had to ask friends for money.
English actress Naomi Ackie has the title role in the new feature film, Whitney Houston: I Wanna Dance with Somebody. Photo: Tribune News Service

The six-time Grammy award winner’s tumultuous relationship with Bobby Brown, her notorious party lifestyle and family handouts contributed towards her financial downfall.

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Whitney Houston performs on stage during Michael Jackson’s 30th Anniversary Celebration, The Solo Years concert in New York, in 2001. Photo: AP

Here’s how she lost the millions …

Whitney Houston owed millions over her property

Whitney Houston appears on stage at the MTV Video Music Awards in New York in 2000. Photo: Reuters

In 2007, Houston filed an income and expense declaration as part of her divorce proceedings from Brown. Radar Online reported the documents revealed she had a mere US$40,000 in cash and US$225,000 in stocks. The document also showed the extent of her debt.

Whitney Houston ushered by a bodyguard through a frenzied crowd of fans at Kai Tak Airport in Hong Kong, in 1988. Photo: Chu Ming-hoi

Her real estate included property in New Jersey, which was worth US$6.5 million, but she still owed US$3.2 million on the estate. At the time, she also had a town house in Atlanta, Georgia worth US$1.2 million, but also owed US$1 million on it.

It was the first time the true state of her financials were revealed and showed how her millions had dwindled.

She threw lavish parties for friends

American pop singer Whitney Houston getting in her hotel limousine after arriving at Kai Tak Airport. Photo: SCMP

In a 2002 interview with Diane Sawyer, Houston said her business was “sex, drugs and rock ‘n’ roll”. She was widely known to spend money on lavish parties for her friends and business partners. In the interview, she told Sawyer: “I mean, my friends, we have a good time.” She said that in her 20s she focused on work and when she got older she reverted to party mode: “And I said, well, I’m just gonna party, you know. It was kind of a rebel in me.”

Michael Jackson and Whitney Houston. Photo: @offthedestiny/Instagram

Houston made an estimated US$250 million during her career, per Billboard. But in 2006, in the midst of her downward spiral, the Atlanta home she shared with Brown went into foreclosure after she owed more than US$1 million on mortgage and taxes. It was later reported the final sale did not happen and Houston received financial help to make the payments, reports CBS.

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She had financial disputes with her dad

Businessman John Houston and his daughter Whitney pose for photographs in New York, in 1989. Photo: WireImage

John Houston was an entertainment manager and Whitney hired him to help negotiate several business deals during her career, per People.

In 2002, the company owned by Whitney’s father sued her for US$100 million in a breach of contract dispute. It claimed he was owed money from a business deal he had helped negotiate.

Arista Records chief Clive Davis was throwing a bash that drew a glitzy guest list including Whitney Houston and her father and mother, John Houston and Cissy Houston. Photo: Getty Images

Business Insider reported that John died unexpectedly a year later and the case was dismissed. Whitney was the sole beneficiary of a US$1 million life insurance policy of her father’s. But his then wife, Barbara, filed a lawsuit against Whitney in 2008. She claimed Whitney had pledged that the insurance money be used to pay off a mortgage Whitney held over her father’s home. Barbara said Whitney lent John money in 1990 and the loan was secured by the mortgage.

A still from Whitney, director Kevin Macdonald’s documentary film on Whitney Houston. Photo: Handout

NY Daily News reported that Whitney counter-sued Barbara and court documents revealed how she had financially supported him over the years. The songstress paid her father an annual salary of between US$52,000 and US$90,000 from 1991 to 1997. She also lent him US$723,800 to remodel his condo and paid for his cars and trips.

Although she supported him financially, their relationship had deteriorated and she did not attend his funeral.

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Dad wasn’t the only one in the family she supported

Whitney Houston’s relationship with her father deteriorated to the extent that she didn’t attend his funeral. Photo: Reuters

Houston’s father was not the only family member she supported financially. After her death, several family members signed a deal to star in a 14-episode docuseries on Lifetime detailing their life without the singer.

Whitney Houston and her daughter Bobbi Kristina Brown arrive at an event in Beverly Hills, California. Photo: AP

The Houstons: On Our Own was reportedly borne out of necessity after Houston’s estate amounted to US$20 million after her death. That money was left to her daughter Bobbi Kristina, who could only start accessing the funds when she was 21, according to E! Online.

Pat Houston with Whitney, Babyface and Clive Davis. Photo: @mpathouston/Instagram

That meant that the family suddenly faced a cash flow problem and the idea of the docuseries came to life. Pat Houston, Whitney’s manager and sister-in-law, said there were negotiations for a reality show while Whitney was alive, reports Reuters. The cast included Whitney’s mother Cissy, older brother Gary, and his daughter Rayah.

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She blew a lot of money on drugs

Whitney Houston and her husband Bobby Brown arrive at the Vanity Fair Oscar Party in Los Angeles, California, in 2001. Photo: AFP

Although she denied being on drugs for many years, the two-time Emmy award winner eventually came clean in a 2009 interview with Oprah Winfrey, admitting to using cocaine and marijuana. The singer said she and her then husband Bobby Brown spent large amounts of cash to fund their drug habit.

Whitney Houston and Bobby Brown at the Ocean Club on Paradise Island, Bahamas, in 2000. Photo: AP

“We were buying kilos and ounces and ounces. We would have our stash,” she said. In the interview, she admitted to being in her pyjamas for seven months at one point, not bothering to get changed, but instead just getting high.

Whitney Houston was even calling friends to borrow money. Photo: REX/SINOPIX 301256/HMA

In 2010, the National Enquirer reported that Houston was spending US$6,300 a week on drugs. Just two years later, it was widely reported that the I Wanna Dance with Somebody singer had lost much of her fortune. She was relying on her record label to give her an advance for her next album.

Marie Claire added the musical icon had even resorted to calling friends to borrow money. Billboard reports that she had to turn to mentor Clive Davis for a US$1.5 million loan to fund a stint in rehab.

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  • The extent of the singer’s debt came out during her divorce from Bobby Brown in 2007; she owed money over real estate in Atlanta and New Jersey and her own dad sued her for millions
  • In 2009, the multiple Grammy and Emmy award winner came clean about her drug habits to Oprah Winfrey; her family also signed a docuseries deal with Lifetime out of ‘necessity’