Katie isn't broke. No, she's not as wealthy as she once was, but she's not broke. I believe at one point her brother managed her finances but that relationship broke down, and he stepped away. It's at that point she began to lose control of her finances, probably because she'd never had to take responsibility for it before. All Katie has had to do, for a large portion of her life, is look after herself. She's had others around her to manage her life. I can imagine that Katie would be difficult, chaotic and demanding to work for, with little to no regard for them as people.
Katie doesn't and never has, taken a pinch of responsibility for her own behaviour. Everything that goes wrong in her life, is always someone else's fault, never hers. She's immature and irresponsible. Yes, there's mental health issues, that's painfully obvious, to everyone. She actually needs to step away from public life and seek some damn good therapy but that will never happen.
I don't think anyone can be that surprised by the latest mess she's ended up in, with Lee. It's just another eye roll moment. I feel extremely sorry for her youngest children, because yet again any stability has been taken away. There will be a huge amount of damage caused to these children. At least Princess and Junior had their Dad to fall back on.