The burden of their substantial bills and shattered dreams of achieving great success in the United States after leaving the royal family is causing trouble in their marriage.
Regarding separate arrangements with Spotify and Netflix, Harry downplayed their significance, stating that they were never part of their original plan and were suggested by someone else. He mentioned that he was forced to sign those deals out of desperation, as his family had cut off his financial support and he had to provide security for both of them.
Prince Harry shocked Spotify executives by admitting in the Oprah interview that he had quickly signed deals to cover the costs of security. Some of the bosses at Spotify questioned why Harry couldn't afford security if he had blown a significant amount of money on a lavish property in Montecito.
The sussexes are incurring staggering expenses, and according to a source, they don't technically own the Montecito mansion. The property was purchased by a residential real estate trust located at 8383 Wilshire Boulevard, Suite 1000, California 90211, which coincidentally shares the same address as Free Mark Financial.
Technically, the sussexes would be tenants in the Montecito mansion, as they rent rooms for their office space, which is primarily used for business purposes. They can write off the expenses for business use, and the entity that bought the property would be responsible for repairs, renovations, and upkeep, which could also be deducted as expenses.
However, it is unclear whether the purchase was made under a trust for tax purposes and whether it would be classified as a benefit in kind, subject to taxation.
In an interview, Megan mentioned that they only saw the exterior of the house before deciding to buy it, without considering whether they could afford it. It is ironic that she admitted caring more about the house's exterior rather than inspecting the interior.
The house seems to be a burden on them, especially considering the substantial mortgage and the costs associated with its maintenance and groundskeeping, which could amount to around seven hundred thousand dollars for a property of that size.
They seem to struggle even with their basic personal grooming, and it's doubtful whether they have been able to keep up with the necessary maintenance, resulting in the property deteriorating. Selling it at a fair price may prove difficult for them unless they resort to a fire sale.
Their financial situation is precarious, especially considering that they won't receive the full 20 million dollars from Spotify and the Netflix deal for three to four shows, which was initially estimated at 100 million dollars. Megan and Harry are on the brink of bankruptcy.
Sergey Grecian, the Russian oligarch who passed away in Moscow at the age of 56 in 2020, allowed the Duke and Duchess of Sussex to stay in his luxurious nine-bedroom, 16-bathroom mansion in the exclusive Montecito neighborhood of Santa Barbara. Currently, the billionaire's wife and children are attempting to reclaim ownership of the house and evict the sussexes.
