Author: Alison Durkee, Forbes

Translation: Deep Tide TechFlow

Deep Tide Introduction: After admitting to the extramarital scandal, whether Nvidia founder and CEO Jensen Huang will divorce his wife Lori Huang and how to split his personal assets up to $155.2 billion is becoming a focus of public attention.

As a spouse married in California for nearly forty years, if the couple did not sign a prenuptial or postnuptial property agreement, Lori Huang can theoretically claim half of the shares and assets based on California's community property regulations. This article consolidates data from Forbes to outline the legal basis for the potential divorce settlement, unknown points of dispute, and historical precedents.

Nvidia CEO Jensen Huang recently admitted to having an extramarital affair, prompting speculation that he and his wife Lori Huang may be heading for divorce. If they truly part ways, Lori may take away billions, but the exact amount remains uncertain.

Image: Lori Huang and Jensen Huang attending the 12th Breakthrough Prize ceremony (Image source: Getty Images)

Key Facts

Jensen Huang still ranks among the top ten richest people in the world, but due to the scandal causing Nvidia's stock price to plummet, he once dropped out of the top ten list on Monday. As of 4 PM EST on Monday, Forbes estimated his net worth to be about $155.2 billion.

Previous reports indicated that Huang had an extramarital relationship with a Chinese citizen named Alice Huang, and U.S. authorities believe this individual may work for the Chinese government. The Nvidia leader subsequently acknowledged in a statement to employees on Sunday that he was "unfaithful to his wife."

Before founding Nvidia, Jensen Huang met his wife while studying at Oregon State University, and they have been married since the mid-1980s. Jensen Huang has publicly stated that Lori "has been with me every step of Nvidia's growth."

It is unclear if the couple signed a prenuptial agreement before marriage or a postnuptial agreement afterward, which would define which assets belong solely to one party rather than being jointly held.

California operates under a system of community property laws. This means that all assets acquired during the marriage, including Jensen Huang's Nvidia shares and related income, must be divided equally at divorce, unless specifically identified as separate property.

This means that once divorced, Lori Huang could theoretically be entitled to half of her husband's fortune. Depending on Nvidia's future stock performance, she could stand to gain at least $75 billion; however, the final percentage still depends on the specific agreements signed by both parties and whether Jensen Huang can prove that certain assets belong solely to him.

Unclear Points

It is still unknown whether the two will ultimately divorce. In a statement on Sunday, Jensen Huang apologized to his wife, admitting that his actions "hurt her and our children" and stated he will "take full responsibility for his actions and the harm caused."

He expressed to his wife and family an understanding that "an apology alone cannot undo what has happened" and hopes "that our family can heal, and with time, I can regain your trust." As of now, Lori Huang has not made a public response to her husband's affair nor disclosed if she intends to maintain the marriage.

Surprising Details

According to a report in The Wall Street Journal on Sunday, Jensen Huang recently told colleagues that his wife "handles everything for him, including signing documents and managing household finances" and even joked that "he doesn't even know their home address and has never paid a bill himself," which indirectly confirms that most of their assets are likely jointly owned.

Key Numbers

Over 3.5%. This is the percentage of shares Jensen Huang holds in Nvidia, making him the largest individual shareholder of the chip giant. If divorce proceeds, this massive shareholding will also be subject to division.

How Does Jensen Huang's Divorce Settlement Compare to Other Billionaires?

If Lori Huang can indeed claim half of her husband's 12-digit fortune, the amount may surpass several recent high-profile billionaire divorce cases. For instance, Amazon founder Jeff Bezos's ex-wife MacKenzie Scott received about $36 billion worth of Amazon shares when they divorced.

Additionally, the details of the divorce agreement between Melinda French Gates and Bill Gates reached in 2021 have not been fully disclosed, but she has also received tens of billions of dollars in assets from her ex-husband, which includes at least $12.5 billion donated to her personal charity and billions worth of stock transferred to her over the years following the divorce.

What is Community Property?

The California government defines the community property that can be divided upon divorce as property that is "jointly owned or jointly incurred" by the spouses during the marriage. This includes all income earned during the marriage, as well as all assets purchased with that income after marriage, such as stocks, real estate, cash income, retirement accounts, business equity, and personal property, and also includes all debts incurred during the marriage.

In contrast, the following properties can be deemed separate property: assets acquired before marriage or after separation, and property that is solely bequeathed or gifted to one spouse, such as inheritance or specific gifts. Additionally, prenuptial or postnuptial agreements can specify which assets are excluded from community property and thus avoid division upon divorce.