The Major Money Problems That Changed Everything For Kyra Sedgwick And Kevin Bacon

With nearly four decades together, celebs Kevin Bacon and Kyra Sedgwick have what might seem like a fairytale marriage, especially for Hollywood. Bacon has talked about how marrying Sedgwick changed him for the better, and Sedgwick has admitted that the two have been very lucky in having a relatively easy relationship. However, that doesn't mean that everything has always been smooth sailing for the couple. For instance, Bacon and Sedgwick invested their money with none other than Bernie Madoff.

Madoff, who died in prison in 2021, ran the biggest Ponzi scheme the world had ever seen, taking money from nearly 5,000 people and, instead of investing it, depositing it into his own bank. It all came crashing down in 2008 when it was discovered that Madoff had defrauded people to the tune of $64 billion. Bacon talked about what had turned out to be a disastrous financial decision with Esquire in 2025, with Bacon giving a warning for other investors: "If it seems too good to be true, then it's too good to be true."

Whatever financial hit they took, though, Bacon and Sedgwick seem to have handled the situation together. When describing the Madoff scheme and what they did in the face of it as a couple, Bacon told Esquire, "It sucked, and we were certainly angry and all the things. But then we woke up the next day and said, 'What do we got? We love each other. We love our children. We're healthy. No one took away our ability to make a living.' So we got back to work."

We don't know exactly how much money Kevin Bacon and Kyra Sedgwick lost to Madoff, but it was a significant amount. In a 2022 interview on "SmartLess," a podcast hosted by Jason Bateman, Will Arnett, and Sean Hayes, Bacon revealed, "We had most of our money in Madoff." And given both Bacon and Sedgwick's longevity in Hollywood, that was likely to be quite a chunk of change.

He did acknowledge on the "SmartLess" podcast the fact that he and Sedgwick were in a relatively privileged position when it came to Madoff. They weren't among those "people whose retirement funds were completely decimated." Bacon also confirmed that they did get some of the money they invested back. Bacon and Sedgwick were also able to keep their real estate in the wake of the Madoff loss, even though they knew they could sell if they had to. That real estate portfolio includes the Connecticut farm where Bacon once had to tear down a reportedly haunted house, and from where he now shares videos of himself singing to a menagerie of animals, including goats and pigs.

It's nice to hear that Bacon and Sedgwick got some money back, but even nicer to know that they were able to stick by each other through that time and take the situation in stride. Perhaps it even brought them closer. In a 2015 interview with GQ, Bacon quipped about one of the ways he and Sedgwick could save money: "Let's have sex or something ... it's free."