Eddie Murphy & Nicole Mitchell: $15 Million, Five Kids, and a Con Man Who Stole It All
She got $15 million in the divorce — then a childhood friend swindled her out of $7 million of it
Key Facts
What Happened
Eddie Murphy and model Nicole Mitchell married on March 18, 1993, in a lavish ceremony at the Plaza Hotel in New York City. During their 13-year marriage, they had five children — Bria, Myles, Shayne, Zola, and Bella. Murphy was one of the highest-paid actors in Hollywood throughout the 1990s and 2000s, with films like The Nutty Professor, Shrek, and Dr. Dolittle generating hundreds of millions in revenue.
Nicole filed for divorce in August 2005, and the split was finalized on April 17, 2006. Murphy's reported net worth at the time was approximately $200 million. Mitchell received a $15 million lump-sum payment and the couple's 11,000-square-foot mansion in a gated community in Granite Bay, California, which had been purchased for $3.8 million. Given Murphy's wealth, many observers considered the settlement relatively modest.
The most dramatic chapter came after the divorce. Mitchell was approached by a childhood friend, Troy Stratos, who claimed to offer exclusive overseas investment opportunities. Mitchell placed $11 million from her divorce settlement into a revocable trust and gave Stratos full access to her finances, including her real estate, luxury cars, and jewelry. The result was devastating: Stratos swindled Mitchell out of approximately $7 million — nearly half of her entire divorce settlement.
The Murphy-Mitchell case became a cautionary tale about post-divorce financial vulnerability. People emerging from divorce — particularly those who were not the primary financial manager during the marriage — are especially susceptible to financial fraud. The emotional upheaval of divorce, combined with sudden access to large sums of money and limited financial literacy, creates a perfect storm for exploitation by predators.
Legal Breakdown: Post-Divorce Financial Vulnerability
Lump Sum vs. Ongoing Payments
Mitchell received a $15 million lump sum rather than ongoing spousal support. Lump-sum settlements provide certainty and independence from the ex-spouse, but they also carry risk — the recipient must manage a large sum of money responsibly, and there are no future payments to fall back on if the lump sum is lost or mismanaged.
Post-Divorce Financial Predators
Newly divorced individuals, particularly those who received large settlements and lack investment experience, are prime targets for financial predators. Mitchell's trust in a childhood friend led to catastrophic losses. Financial advisors recommend that anyone receiving a significant divorce settlement immediately engage a certified financial planner and never give any single person full control over settlement funds.
Revocable Trust Risks
Mitchell placed her settlement funds in a revocable trust with her friend as the trustee. Revocable trusts offer no asset protection from a trustee who has been given full access. An irrevocable trust with independent, professional trustees and oversight mechanisms would have provided far better protection against fraud.
What This Means for Your Divorce
- →If you receive a large lump-sum divorce settlement, immediately engage a reputable certified financial planner — not a friend, not a family member.
- →Never give any single person full access to your settlement funds. Use professional trustees, independent oversight, and multiple signatories.
- →Post-divorce emotional vulnerability makes people susceptible to financial fraud. Be especially cautious about investment opportunities in the first year after divorce.
- →A lump-sum settlement provides independence but carries the risk that the money can be lost. Consider whether ongoing payments might provide better long-term security.
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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.