Sometimes we’re just curious and other times, we need to know for personal reasons. However, being able to find someone’s net worth isn’t always the easiest. This is even more complicated when that person is a celebrity. That’s because a celebrity has a well-known list of assets and very minimal privacy, whereas the public doesn’t always disclose these details publicly. (Image Credit: Gerd Altmann/Pixabay)
There are currently hundreds of websites online that share different numbers, which serves to confuse the public further. After all, how can so many sources have such different estimates of a celebrity’s worth? The truth is most websites use a calculated algorithm and estimate the final number in a ballpark area. That’s right, most numerical figures associated with celebrity net worth are rough estimates.
That means that although they may not be far off from the individual’s actual worth, they attempt to figure out a number based on public information, instead of financial resources like bank statements and investment portfolios. They assume rounded figures like property values and sole ownership of assets. This may not always be the case when it comes to monetary determinations.
But, if you want to know how to determine net worth, here’s a few ways you can do that:
Calculating net worth relies upon a simply formula of assets and liabilities. Assets are things you own. Liabilities are things you own money on. Typically, you would subtract the total liabilities from the total assets and take the number from that.
Vehicle, Aircraft, and Watercraft Registrations
When determining a celebrity’s worth, they are going to look at multiple factors when coming up with the number. First, they’re going to look at vehicle and watercraft registrations. All motor vehicle registrations are going to be registered in the celebrity’s name and will give the year, make, and model of the vehicle.
From there, a quick resell value will provide an asset value for those cars. The same is true with watercraft registrations. The celebrity’s state of residence registers all watercraft. However, large vessels may need registering with the US Coast Guard. All aircraft need to be registered with the FAA (Federal Aviation Administration).
Property Values
A private piece of land, house, trailer or vacation home registered to the celebrity counts as property. Background checks provide all properties registered to the individual. From there, property values can be assigned to the location and resell value. These also count toward the assets.
Stocks, Bonds, Mutual Funds
Stocks, bonds and mutual funds are assets for the individual. They would figure into the calculation of the net worth. Although some of this information is going to remain private, if the celebrity owns a company, access to this information is normally sourced through financial disclosure.
Evaluating Divorce Proceedings
Not every divorce is public domain. However, for celebrities, litigation may cause disclosure of monetary figures. Florida, California, and Connecticut are all states that make information publicly available. Typically, divorce proceedings have assets, like bank holdings, retirement funds, properties, and any collections listed. The determination of celebrity net worth includes this information.
Liabilities
Money owed to other institutions, organizations or individuals are liabilities. As such, bank loans, credit debt, mortgages and support orders are factors in the determination of net worth.
An example of liability is a $50,000 credit card debt. To calculate net worth, subtract that amount from the total list of assets owned. If a person has an asset value of $100,000 in this situation, the total net worth would be $50,000 (subtracting $50,000 from $100,000)
Making General Assumptions
Many websites extrapolate the income of a celebrity from a movie or album. They use that information to make a rough estimate of their overall net worth. Most of these numbers are inflated. Therefore, searchers find an inaccurate value instead of factual representation.
Unfortunately, the only way to know an accurate representation of financial worth is to enter in the current numbers with an accountant. That is, of course, not achievable with a celebrity. After all, very few celebrities want their personal information disclosed. As such, it is better to treat numbers sourced online as merely a guide.