Robert & Sheila Johnson: The BET Divorce That Created America's First Black Female Billionaire
She co-founded BET, got pushed out, then walked away with $400 million and built her own empire
Key Facts
What Happened
Robert L. Johnson made history in 2001 when he became the first African American billionaire after selling Black Entertainment Television (BET) to Viacom for $3 billion. What the headlines often overlooked was that his wife Sheila had co-founded BET with him in 1979, working alongside Robert to build the network from a small cable channel into a media empire. They had married in 1969 and spent three decades building their fortune together.
By the time they divorced in 2002, Sheila had been largely sidelined from BET's operations despite her foundational role. The $400 million settlement was one of the largest divorce payouts in American history at the time. With that settlement, Sheila Johnson became the first African American woman to achieve billionaire status -- a milestone that underscored how divorce settlements can reshape individual wealth and create new power dynamics.
Sheila did not retreat into quiet wealth. She founded Salamander Hotels and Resorts in 2005, building a luxury hospitality empire anchored by the Salamander Resort & Spa in Middleburg, Virginia. She became a part-owner of three professional sports teams: the Washington Mystics (WNBA), the Washington Wizards (NBA), and the Washington Capitals (NHL). She also became a major philanthropist and political fundraiser.
In a twist that captured national attention, Sheila married Arlington County Circuit Court Chief Judge William T. Newman Jr. in 2005 -- the very judge who had presided over her 2002 divorce from Robert. The Johnson divorce demonstrated a truth often lost in media coverage of celebrity splits: the spouse who built the company alongside the founder often has a powerful legal claim to the wealth created during the marriage, regardless of whose name was on the letterhead.
Legal Breakdown: Community Property
Co-Founder Spouse's Claim to Business Assets
Sheila Johnson's case illustrates that a spouse who actively participates in building a business has a powerful claim to its value -- even if they were later pushed out of operations. Courts consider direct contributions (founding the company, early-stage work, managing operations) as well as indirect contributions (supporting the household, enabling the other spouse to focus on the business). Documentation of your role in building shared assets is critical.
Equitable Distribution of Business Sale Proceeds
The $3 billion BET sale to Viacom happened just before the divorce filing, converting an illiquid business asset into cash. This timing made division simpler but also made the stakes crystal clear. When a business is sold during or just before a divorce, the proceeds are marital property subject to division. The Johnson case shows why timing of asset sales relative to divorce filings matters enormously.
Building Wealth After Divorce
Sheila's post-divorce trajectory -- from settlement recipient to sports team owner and hotel mogul -- is a masterclass in using a divorce settlement as a launchpad. Rather than living off the $400 million, she invested it in new ventures that multiplied her wealth. Financial planning for life after divorce should include an investment and wealth-building strategy, not just an exit plan.
What This Means for Your Divorce
- →If you helped build a business during your marriage, document your contributions meticulously -- they are the foundation of your claim to the business's value.
- →A large divorce settlement is not the end; it is a beginning. Work with financial advisors to create a post-divorce investment strategy.
- →When a major business sale occurs near a divorce filing, the proceeds are marital property. Timing matters -- consult a lawyer before any sale closes.
- →Do not let being sidelined from a business you co-founded diminish your legal claim to its value.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.