Tag: divorce and prenups

Enforceability of Islamic Prenuptial Agreement

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The Texas Supreme Court recently had to decide whether an Islamic prenuptial agreement is enforceable. Especially interesting is whether the agreement’s, Arbitration by Fiqh Panel Clause, can be enforced in a family law case involving children.

Texas Islamic Agreement

‘All My Exes Live In Texas’

The Wife, Ayad, and her Husband, Latif married in 2008. In connection with their marriage, they signed an “Islamic Pre-Nuptial Agreement”.

In the Islamic Pre-Nuptial Agreement, they said: “Belief that Islam . . . is binding on them in all spheres of life, and that any conflict which may arise between the husband and the wife will be resolved according to the Qur’an, Sunnah, and Islamic Law in a Muslim court, or in its absence by a Fiqh Panel.”

The three-person Figh Panel will be selected and provides that the panel “will not represent the parties in conflict, but rather, serve as impartial arbitrators and judges, guided by Islamic Law and its principles.” The majority decision of the Fiqh Panel will be binding and final.

Although the Wife’s signature appears on the Islamic Pre-Nuptial Agreement, she alleges that she did not become aware of its contents—or even see it—until she and her husband began experiencing marital difficulties in 2020.

The Wife argues she was “defrauded” into signing a prenup that violated her fundamental rights. In January 2021, she filed for divorce and sought to be appointed joint managing conservator of the couple’s six-year-old son.

Wife argued the term “Islamic Law” was too indefinite; the Agreement was void because it violated public policy; Husband’s previous breaches of the Agreement had excused Ayad from performing; and the Agreement was unconscionable.

The trial court held a hearing on Husband’s motion to enforce, and concluded it would order the parties to arbitrate under the Agreement. The court held a second hearing in which it gave each party twenty minutes to address solely whether the Agreement was entered into voluntarily.

The trial court ruled it had no discretion under the Texas General Arbitration Act but to enforce the Agreement and refer the parties to arbitration per the terms of their Agreement, but would review the award to determine if it violated constitutional rights or public policy, and would hold a hearing to determine whether the award was in the best interest of the child.

The Wife sought review in the Supreme Court of Texas.

Florida and Islamic Prenuptial Agreements

I’ve written about religious prenuptial agreements, such as the Mahr (Islamic Prenuptial Agreement) before. Prenuptial agreements are not just for celebrities. Anyone who brings personal or business assets into their marriage can benefit from a prenuptial agreement.

Prenups are also important to have in place before a couple starts investing in businesses, buying properties, and accumulating mountains of debt. Many religions, especially Islam, have terms couples want to be governed by in the event of divorce.

But just having a prenup is not enough. Prenups are frequently challenged in court. Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

Florida also adopted the Uniform Premarital Agreement Act. The UPAA requires that all premarital agreements be in writing and signed by both parties. It is enforceable without consideration other than the marriage itself.

Because prenuptial agreements may be challenged in court, Florida courts must consider things such as fraud, duress, coercion, in addition to the constitutionality of prenups, whether they violate Florida law or Florida public policy.

‘Deep in the Heart of Texas’

The Supreme Court of Texas agreed with the Wife that the family court was required to hear and determine her challenges to the Agreement’s validity and enforceability before referring the parties to arbitration.

The Family Code, which provides that a trial court “may” refer suits for dissolution of marriage to either binding or nonbinding arbitration based on the parties’ written agreement is subject to certain limits.

Before arbitration, if a party to a divorce asserts that the agreement to arbitrate is not valid or enforceable,” then the court may order arbitration only if it determines that the agreement is valid and enforceable.

Here, the court incorrectly concluded it “must refer parties to arbitration when it is contracted by the parties,” and that it had “no discretion but to enforce the Agreement.” Since the trial court did not resolve the Wife’s challenges in its order compelling arbitration, and incorrectly concluded it could not, the trial court erred.

The Texas Supreme Court opinion is here.

Google Divorce and Prenups

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If you google divorce and prenups, you will find different results based on which state you are in. One thing is for sure, Elon Musk’s brief affair with the wife of Google co-founder Sergey Brin, will get you much different search results, and may even call into question an expensive prenup.

Divorce Prenups

I’m Feeling Lucky

Elon Musk is the richest person in the world, with an estimated fortune of $240 billion. While Sergey Brin is no slouch himself, he is clearly struggling to catch up in the rankings with a meager $95 billion.

Despite their competitiveness, Brin provided Musk with about $500,000 for Tesla during the 2008 financial crisis, when Tesla was struggling to increase production. In 2015, Musk gave Brin one of Tesla’s first all-electric sport-utility vehicles.

But in recent months, there has been growing tension between the two. Reportedly, Brin ordered his financial advisers to sell his personal investments in Musk’s companies

Brin filed for divorce from Nicole Shanahan in January of this year, citing “irreconcilable differences,” according to records filed in Santa Clara County Superior Court. The divorce filing was made several weeks after Brin learned of the brief affair, people have said.

At the time of the alleged liaison in early December, Brin and his wife were separated but still living together, according to a person close to Shanahan. In the divorce filing, Brin cited Dec. 15, 2021, as the date of the couple’s separation.

But Shanahan’s side is arguing that the prenuptial agreement they entered was signed under duress, while pregnant.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are not just for computer programmers and awesome car makers, and they are about much more than just resolving expensive millions of Tesla stock acquired during a marriage.

Any couple who brings any personal or business assets into their marriage can benefit from a prenuptial agreement. Prenups are important to have in place before a couple starts investing in start-up, electric car companies, DNA ancestry search companies, and other investments.

But prenups are frequently challenged in court.

Florida has both case law and a statute to help lawyers, judges, and the parties determine if a prenuptial agreement is enforceable. For example, Florida adopted the Uniform Premarital Agreement Act. The Act requires that all premarital agreements be in writing and signed by both parties. It is enforceable without consideration other than the marriage itself.

Couples wanting to sign one can enter into a premarital agreement with respect to their rights and obligations in any of their property, whenever and wherever acquired or located; their right to buy, sell, use, transfer, or otherwise manage and control their property and the disposition of their property if they separate, divorce, die, or any other event.

Prenuptial agreements may be challenged in court, as Shanahan may be attempting using the duress defense. When ruling on the validity of a prenup, Florida courts must consider things such as fraud, coercion, in addition to the unfairness of the agreement, whether there was any financial disclosure, and of course, duress.

Ludicrous Mode

About 11 hours after the Wall Street Journal article about the affair was published online, Musk tweeted:

This is total bs. Sergey and I are friends and were at a party together last night!”

Over the past two months, Musk’s personal life has drawn considerable attention. He has been accused of exposing himself to a flight attendant at SpaceX, which he denied. He also reportedly had two children late last year with a female executive at another company he co-founded, Neuralink. One of his 10 children has publicly disavowed him.

Then there’s Twitter. Earlier this month, Musk sought to back out of an agreement to buy Twitter, saying the company hasn’t provided the necessary information to assess the prevalence of fake or spam accounts. Twitter has sued Musk to force him to honor the deal, and a Delaware court has agreed to an expedited trial in October.

Brin and Shanahan already were facing problems in their marriage in the fall of 2021, primarily because of Covid pandemic shutdowns and the care of their 3-year-old daughter.

The liaison with Musk took place in early December 2021, at the Art Basel event in Miami. The alleged affair happened after Musk had broken up with his on-again, off-again girlfriend, the singer Grimes, in September.

Brin and Shanahan are now involved in divorce mediation, with Shanahan seeking more than $1 billion. The two sides have yet to come to an agreement, with Brin’s side claiming that Shanahan is asking for much more than her prenuptial agreement entitles her to.

The Wall Street Journal article is here.

Enforcing an Islamic Mahr Prenuptial Agreement

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The extent of a court enforcing a religious prenuptial agreement, like the Islamic Mahr agreement, is big news. A family judge in Florida recently ruled that an Islamic Mahr agreement was not only enforceable, but waived equitable distribution and temporary support. How did an appellate court view the ruling?

Mahr Prenuptial Agreement

The Mahr from Thar

For many religious couples, in lieu of a secular prenuptial agreement, they sign a religious contract. Catholics have prenuptial agreements and Jews have a ketubah. In this recent Florida divorce, the parties signed an Islamic premarital agreement called a “Mahr” or “Mehr” agreement.

Although the agreement was entered in Bangladesh, neither party claimed it should be interpreted under Bangladeshi or Sharia law.

A Mahr is a contract to pay money – frequently expressed in gold coins – promised by a groom to his bride in the event of death or divorce. The amount is agreed to before the marriage and negotiated between the parents of the couple.

This Mahr agreement was two pages long, and had the explicit promise by Former Husband to pay Former Wife a total of 15 Bangladeshi lac Taka upon marriage. Five lac Taka were to be paid up front on marriage, and ten more in the event of a divorce.

At the time of the trial, 10 lac Taka was worth about $12,000. The Bangladeshi Taka has not been appreciating against the dollar lately.

At trial, the Former Wife argued that the ten lac Taka Mahr agreement was only the minimum amount she could ask the Former Husband for. In the Former Wife’s view, the Mehr did not waive her right to equitable distribution and temporary alimony.

The Former Husband, on the other hand, argued that the ten lac Taka under the Mahr agreement was the maximum she could get. The purpose of the Mahr was to guarantee an agreed sum to her. By agreeing to a guaranteed payment in advance, she waived her rights to ask for anything else.

The family law judge found that the Former Wife had built up some equity in the jointly titled, marital home, but then awarded it to the Former Husband. Then the court ordered Former Wife to vacate the house.

Relying on the Mahr agreement, the judge also denied Former Wife temporary alimony, limiting her to the ten lac Taka lump sum.

The Former Wife appealed.

Florida Prenuptial Agreements

I’ve written about religious prenuptial agreements, such as the Mahr, before. Prenuptial agreements are not just for celebrities. Anyone who brings personal or business assets into their marriage can benefit from a prenuptial agreement.

Prenups are also important to have in place before a couple starts investing in businesses, buying properties, and accumulating mountains of debt.

But just having a prenup is not enough. Prenups are frequently challenged in court. Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

Florida also adopted the Uniform Premarital Agreement Act. The UPAA requires that all premarital agreements be in writing and signed by both parties. It is enforceable without consideration other than the marriage itself.

Because prenuptial agreements may be challenged in court, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

Florida the Sunshine Religious State?

Many people don’t realize that religious agreements can be enforceable in Florida. However, there is a limitation, only a religious agreement’s secular terms are enforceable as a contractual obligation. That is true even if the secular terms were agreed to in a religious ceremony.

Here, the parties disputed how the terms of the Mahr agreement should be interpreted. Former Husband argued the Mahr agreement was meant to protect a spouse in the event of a divorce, so the Mahr should be read as the entirety of Former Wife’s recovery.

Former Wife argued the lack of waiver language in the Mahr agreement –stating that the couple intended to waive equitable distribution and alimony – meant she was entitled to ask a Florida court for relief in addition to the Mahr.

The appellate court reversed, holding that parties to a prenuptial agreement — religious or secular — are allowed to contract away their traditional marital rights, but they must do so in a way that comports with Florida law.

To contract away marital rights, a prenuptial agreement’s plain language must unambiguously express a desire to waive equitable distribution. Additionally, any agreement that waives or limits the right to temporary support and attorney’s fees violates Florida public policy.

Because the Mahr did not expressly bar Former Wife from seeking a property division and alimony, it couldn’t overcome Florida’s strong public policy in favor of equitable distribution and temporary alimony.

The opinion is here.

 

Cheap Online Prenups

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A segment aired on the ABC television show Shark Tank about a company selling cheap online prenups. There is no question a contract can be done cheaply online – especially when no lawyers are involved.  But lawyers  hired to create, or challenge, or defend real world prenuptial agreements can tell you if the cheap, online prenups are worth it.

Cheap Prenup

“He who represents himself, has a fool for a client”

No one likes to read the fine print on websites they visit. But, maybe you’re the kind of person who is comfortable getting a medical diagnosis from WebMD! Even if you are, you may want to avoid unpleasant surprises and look through the website’s “Terms of Use” (the agreement every user must agree to and abide by in order to use a website or service).

Websites may advertise that their online legal services and prenuptial agreements are prepared by “family lawyers.” However, if you look at the website’s Terms of Use, they may likely reveal that the prenups they are selling you – which will govern years of alimony payments, the division of all your property, tax consequences, and your life after marriage – were created without any “legal advice.” Or my personal favorite: no law was considered about your situation when drafting your prenuptial agreement.

Prenuptial agreements are important documents. So, if you don’t care that your cheap, online prenup did not take into consideration any law, let alone any changes in the law, or that any of the information is current, a cheap online prenup may fit nicely next to your online medical diagnosis.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are not just for tech billionaires, celebrity actors and rock stars. Prenups are about much more than just resolving who gets that expensive Montana ranch acquired during a marriage.

Any couple who brings any personal or business assets (or debts) into their marriage can benefit from a prenuptial agreement. They are important to have in place before a couple starts investing in businesses, buying properties, and accumulating mountains of debt.

But just having a prenup is not sufficient. That’s because prenups are frequently challenged in court. Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

Florida adopted the Uniform Premarital Agreement Act. The UPAA requires that all premarital agreements be in writing and signed by both parties. It is enforceable without consideration other than the marriage itself.

Couples wanting to sign one can enter into a premarital agreement with respect to their rights and obligations in any of their property, whenever and wherever acquired or located; their right to buy, sell, use, transfer, or otherwise manage and control their property and the disposition of their property if they separate, divorce, die, or any other event.

Because prenuptial agreements may be challenged in court, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

Good, Cheap, or Fast? Choose Two

Prenuptial agreements are very technical and one size does not fit all. They are particularly important to protect your future income, children from another marriage, potential inheritances, businesses and your business partners, other assets, and your sources of income.

The last thing that you want to do is wonder if you are protected by a cheap, online prenup; one which may not be enforceable on its face. As mentioned above, Florida adopted the Uniform Premarital Agreement Act. The UPAA is Florida’s recognition that there is not always uniformity in how prenups are enforced, challenged and defended.

There are many nuances in the law of prenups which can differ from state to state. For instance, some provisions in a prenup which are available in one state – such as the ability to waive temporary alimony – may not be available in another state. There may also be differences between states about the sufficiency of the financial disclosures required.

There are also questions about privilege and confidentiality. In Florida, communications with your attorney are generally privileged. This means that communications between a client and their lawyer can be confidential. This can also mean that, absent some exception or waiver, neither an attorney or a client can be compelled to divulge confidential communications made during the rendition of legal services.

What do online, cheap prenup websites offer? As the websites plainly tell you, they are not your law firm. So, communications between you and the website are probably not privileged communications under the attorney-client privilege or work product doctrine.

This could result in your communications not being protected. And if your prenup gets challenged in court, you may be in the uncomfortable position of watching someone you thought was your lawyer testify against you.

One cheap, online prenup website said it best:

“Any Legal Information provided is not a substitute for legal advice from a qualified attorney licensed to practice in an appropriate jurisdiction.”

The JDSupra article is here.

 

Validity of Prenuptial Agreements

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Courts which uphold the validity of prenuptial agreements have singer, Kelly Clarkson, singing a happy tune. A family court judge recently declared her prenup was valid. The ruling means Clarkson holds the reins to a $10.4 million Montana ranch where her former husband, Brandon Blackstock, has been living and refusing to leave.

Prenuptial Agreement

Stronger in the Treasure State

Singer, songwriter, and The Voice coach, Kelly Clarkson, gave her fans a sneak peek of her ranch in rural Montana, where she was sheltering-in-place with her family amid the COVID-19 pandemic. Earlier this year, before ruling on ownership of the ranch, the judge ruled that her music manager and ex-husband, Brandon Blackstock, would have to pay $81,000 per month for the upkeep for the Montana ranch where he was then residing.

Although court papers show that he is only making about $10,000 per month – a far cry from his ex’s $1.5 million monthly income – Clarkson was then paying him $150,000 in spousal support and another $45,000 in child support each month.

Recently the family court rejected Blackstock’s argument that the Montana ranch is marital property and should be shared equally by both exes, according to the Sept. 30 order obtained by E! News. Instead, the judge upheld their premarital agreement, and found that the Montana ranch was Clarkson’s non-marital property identified in the prenup.

The family judge’s ruling means Clarkson takes control of the ranch:

“The Court further finds that the Montana Ranch and the other two Montana properties are not titled in both of the Parties’ names either as joint tenants with right of survivorship or as tenants by the entireties, as required under the PMA to create marital property,” reads the decision. “The Court therefore rejects Respondent’s position that the Montana Ranch and other Montana properties are marital property owned 50/50 by the Parties.”

The situation appears to be complicated for the pair: While Clarkson owns the property, her ex-husband is the one living there.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are not just for celebrity singers and songwriters, and they are about much more than just resolving expensive Montana ranches acquired during a marriage.

Any couple who brings any personal or business assets to their marriage can benefit from a prenuptial agreement. They are important to have in place before a couple starts investing in businesses, properties, and other investments.

But prenups are frequently challenged in court.

Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable. For example, Florida adopted the Uniform Premarital Agreement Act. The Act requires that all premarital agreements be in writing and signed by both parties. It is enforceable without consideration other than the marriage itself.

Couples wanting to sign one can enter into a premarital agreement with respect to their rights and obligations in any of their property, whenever and wherever acquired or located; their right to buy, sell, use, transfer, or otherwise manage and control their property and the disposition of their property if they separate, divorce, die, or any other event.

Prenuptial agreements may be challenged in court, as Kelly Clarkson’s former husband tried. When ruling on the validity of a prenup, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

Mr. Know It All

In order to beef up his claim to marital property, after their separation, Blackstock made a “deliberate choice” to “change his life” and become a full-time rancher, according to an August filing obtained by E! News. At the time, he was “exclusively using” the Montana ranch as his “residence and business.”

Clarkson previously requested permission to sell the ranch because of the “financial burden” of maintaining a property that was only being used by her ex-husband. The costs of maintaining the ranch are $81,000 per month, the court determined.

However, the judge initially rejected her request to sell the Montana site. Blackstock was ordered to pay the hefty property fees beginning in April 2021. For her part, Clarkson was required to pay nearly $200,000 per month to Blackstock, a former music manager, in spousal and child support. He is responsible for “100% of the cost” of transporting their two children (River, 7, and Remington, 5) to and from Montana. He has a 25 percent custodial timeshare.

After the ruling on the prenuptial agreement, Clarkson now has the right to sell the Montana ranch as she is the one who purchased it, according to the report. The ex couple’s divorce has been ‘bifurcated’ meaning the end of the marriage has officially been declared and some financial issues were reserved on.

The NBC Chicago news article is here.

 

Prenuptial Agreements and Waiving Alimony

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Actor Robert De Niro is wondering why he signed a prenuptial agreement since it doesn’t seem to be waiving alimony very well. De Niro’s lawyer is claiming the actor is being worked to death to keep up with his estranged wife’s extravagant lifestyle — including her “thirst for Stella McCartney” and $1 million-plus diamond rings.

Prenup Alimony

Aging Bull

According to De Niro’s lawyer during a virtual court divorce hearing:

“Mr. De Niro is 77 years old, and while he loves his craft, he should not be forced to work at this prodigious pace because he has to/ When does he get the opportunity to not take every project that comes along and not work six-day weeks, 12-hour days so he can keep pace with Ms. Hightower’s thirst for Stella McCartney?”

He could get sick tomorrow, and the party’s over,” she said of the famed “Raging Bull” and “The Irishman” star. De Niro phoned into the proceeding, while Hightower appeared by video link.

She also claims De Niro is already a tax delinquent again — with the paychecks from his next two movies to offset his latest multimillion-dollar bill to Uncle Sam, his divorce lawyer claimed.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements and the De Niro divorce before. Prenuptial agreements are not just for celebrity sports figures, and they are about much more than just resolving uncertainty in a marriage.

Any couple who brings any personal or business assets to the union can benefit from one. They are also important to have in place before a couple starts investing in businesses, properties and other investments. But prenups are frequently challenged in court.

Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable. For example, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

And as Robert De Niro is figuring out, even though a prenuptial agreement can waive alimony, temporary support during the divorce proceedings, and child support, may not be waivable in a prenuptial agreement. Florida courts have, recognized that, notwithstanding language in the prenuptial agreement to the contrary, spouses are still entitled to temporary support. In Florida, it is against the public policy to enforce any provisions waiving temporary support.

The War With Grandpa

The recent New York hearing came as the couple squabbles over how much temporary support De Niro should have to pay to Hightower until the divorce is finalized.

Hightower’s lawyer, Kevin McDonough, argued that since filing for divorce in 2018, De Niro has unfairly continued to cut the amount of money he has been sending his estranged spouse, including involving her credit-card expenses, going from $375,000 a month to just $100,000 monthly as recently as January.

But Krauss claimed that in the years leading up to their separation, Hightower was spending more and more. In just 2019, she had spent $1.67 million — including buying a diamond worth $1.2 million from jeweler Kwiat, the lawyer said.

Krauss said De Niro is behind millions of dollars on his taxes and that the money from his next two movie projects will go toward paying off those liabilities. De Niro — who was clobbered with a $6.4 million tax lien in 2015 — has previously said the pandemic decimated his finances.

“If he wants to direct or compel his family to leave their longtime home while he’s spending millions and millions and millions on himself, on his own homes, on renovating what his lawyers tongue-in-cheek call his cottage in Montauk, which he has poured millions and millions into over the past couple of years, he can take that position,” McDonough claimed of the actor.

“There have been no cutbacks and no slowdowns in Mr. De Niro’s lifestyle whatsoever,” McDonough said. Until the prenuptial agreement goes into effect, De Niro is supposed to pay her so she can “maintain the status quo” lifestyle she had when they were married — while also crying foul on Krauss’ claims that De Niro is struggling financially.

The Fox news article is here.

Prenups for Millennials

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Millennials are often known to buck convention, and that may be true with prenups. While prenups have been most common among celebrities, the rich, and couples entering second and third marriages, more young people are requesting them.

Millennial Prenups

Closing Time

The term Millennials generally refers to the generation of people born between the early 1980s and 1990s, and as the Wall Street Journal reports, younger adults of all income levels are drafting prenups.

Millennials are not only trying to protect assets accumulated before and during marriage but to address societal realities that weren’t necessarily present or common years ago, such as a desire to keep finances separate, student debt, social-media use, embryo ownership and even pet care.

Experts point to the fact that many millennials are children of divorced parents and have had an intimate look at what can happen financially when a marriage dissolves. At the same time, the stigma or taboo that used to be associated with discussing money before marriage is slowly disappearing.

Some millennial couples who want to maintain a clear separation of their finances during marriage are using prenups as a workaround for state laws that would otherwise treat certain assets as marital property.

This mind-set change is even true for clients who don’t have significant assets to protect going into the marriage, lawyers say. Some millennials want to keep their finances—current and future—separate and businesslike, which would allow them to leave a marriage, if necessary, without many strings attached.

Florida Prenups

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just exploring the strange new world of marriage. A prenuptial agreement (or “prenup” for short) is a contract between people intending to marry. A prenup determines spousal rights when the marriage ends by death or divorce.

If you divorce without a prenup, your property rights are determined under state law, and a spouse may have a claim to alimony while the suit for divorce is pending and after entry of a judgment.

That’s where prenups come in. Prospective spouses may limit or expand state laws by an agreement. Prenups are also used to protect the interests of children from a prior marriage, and to avoid a contested divorce.

All the Small Things

As the Wall Street Journal article further explains, for young couples who haven’t been married before and don’t have children, prenups need to anticipate all sorts of questions related to potential alimony payments, such as: Will one of you stay home with children or do you both plan to continue working? What might each of your potential incomes be? Will you need job training?

Many younger professionals might think to waive alimony completely, especially if they both have their own careers and lead separate financial lives. However, if there is a chance that one spouse could be out of the workforce for a considerable time, beyond a standard maternity or paternity leave, to raise children, it could impact future employability and earning capacity.

Many millennials are also going into a marriage with significant student and credit-card debt, which also is a change from the past. A recent Fidelity Investments report, for example, found that millennials in 2020 had an average loan balance of $52,000.

As a result, handling debt issues are making their way into prenuptial agreements. One couple, where a wife-to-be had $75,000 in student-loan and credit-card debt, the couple added a provision to their prenup that said any marital assets used to pay off her debt had to be reimbursed in the event of the divorce.

Another couple used a prenup to address how any future student debt taken on during the marriage would be handled. They agreed that this type of debt would be considered the borrowing party’s personal debt, not a marital debt.

As more couples decide to delay having children until later in life, more prenuptial agreements are including directions for dealing with genetic material in the event of divorce. In a prenuptial agreement, a couple can agree that in the event of a divorce, their embryos would be donated to stem-cell research through a local stem-cell bank. Neither party could use the embryos without the consent of the other party.

Pet provisions also are becoming more commonplace in today’s prenups by people who view their pets as their de facto families. A prenup can be crafted with a visitation schedule, a plan to split vet bills and pet insurance costs and address what would happen if one of the partners moved far away from the other.

Some millennials want to address social media in prenups to ensure that one spouse can’t write nasty things about the other in the event they break up. However, it is easy to run into First Amendment issues.

The Wall Street Journal article is here.

 

Straight Outta Court

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Dr Dre is wondering if his prenup will get him straight outta court. He announced that he and his wife Nicole Young are getting divorced after 24-years of marriage. Young filed for divorce from Dre, whose real name is Andre Romelle Young, citing irreconcilable differences. One of the interesting issues is whether Young signed a prenuptial agreement.

Compton

Straight Outta Compton

The couple, who married in May 1996, share two children together, son Truice, 23, and daughter Truly, 19. Dre also has four children from previous relationships, daughters Tyra Young and La Tanya Danielle Young, and sons Marcel and Curtis.

The music mogul, 55, and Young, 50, announced their split after 24 years of marriage in June, and Dre revealed that the couple, who wed in 1996, does have a prenuptial agreement, despite initial reports that indicated the two do not. Young is asking for spousal support and a division of property.

In 2019, Forbes estimated that Dre’s net worth was $800m, making him the second-wealthiest hip hop artist in the world that year. The rapper’s fortune is in part due to the success of his headphone line, Beats by Dre, which was acquired by Apple in 2014 for $3bn.

According to TMZ, Dre, who listed the date of their separation as March 27, 2020, and cited irreconcilable differences as the reason for their split, agreed to pay spousal support but says any distribution of property should be controlled by their prenuptial agreement. Young’s petition did not mention a prenup and the outlet reported that she has claimed she never signed one.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just protecting yourself after your marriage. A prenuptial agreement (or “prenup” for short) is a contract between people intending to marry.

A prenup determines spousal rights when the marriage ends by death or divorce. This can be especially important for those who boldly go into fourth marriages.

If you divorce without a prenup, your property rights are determined under state law, and a spouse may have a claim to alimony while the suit for divorce is pending and after entry of a judgment. Many couples divorcing would prefer not to spend too much time litigating in family court.

That’s where prenups come in. Prospective spouses may limit or expand state laws by an agreement. Prenups are also used to protect the interests of children from a prior marriage, and to avoid a contested divorce.

There are many problems with prenuptial agreements too. If a prenuptial agreement includes any provisions that violate the law or public policy, it may automatically be deemed invalid.

Additionally, a prenuptial agreement cannot waive child support, and can’t set an amount for child support. Courts have plenary power over support issues, so child support amounts are determined by courts based on our child support guidelines.

Also, a premarital agreement may not be enforceable in a family court case, for instance, if it was not signed voluntarily; or if it was the product of fraud, duress, coercion, or overreaching.

Deez Prenups

The 55-year-old, who started his career as a member of the rap group NWA, also founded the record label Aftermath Entertainment, which previously signed Eminem and 50 Cent.

In 2015, Dre apologized to “the women I’ve hurt” following allegations of physical abuse against women, telling The New York Times:

Twenty-five years ago I was a young man drinking too much and in over my head with no real structure in my life. However, none of this is an excuse for what I did. I’ve been married for 19 years and every day I’m working to be a better man for my family, seeking guidance along the way. I’m doing everything I can so I never resemble that man again.

This divorce, given the stakes and the profiles of the parties, is expected to be completed relatively quickly and privately. Generally, anything he acquired before marriage would be his separate property, with or without a prenuptial agreement. Dre sold Beats during the marriage so there may not be a separate, or non-marital, component to it – meaning there is a very large sum of money that is at stake as marital property.

Young is going to get half of what he’s worth very likely, but while Dr. Dre has claimed he is willing to pay spousal support, Young probably won’t need spousal support after the marital estate is divided. She asked for temporary support and she may be able to get hundreds of thousands of dollars a month before the case is resolved. The couple was last seen together in public in February at the Tom Ford fashion show.

The Independent article is here.

 

Da Vinci Code meets the Family Code: Setting Aside a Settlement Agreement

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The Da Vinci Code meets the Family Code as popular author Dan Brown’s ex-wife has filed a claim to set aside their settlement agreement – after their divorce ended – and sued him for money damages. The inferno in New Hampshire will deal with fraudulent financial affidavits and other claims to set aside a marital settlement agreement.

Setting Aside Agreements

Deception Point

In a lawsuit filed this week, Blythe Brown is suing Dan Brown for misrepresenting the couple’s wealth in a sworn financial affidavit he signed as part of their divorce agreement, and for intentional and negligent infliction of emotional distress.

Author Dan Brown, is a New Hampshire native. He is best known for his thriller novels, including the Robert Langdon novels Angels & Demons, The Da Vinci Code, The Lost Symbol, Inferno, and Origin. His novels are treasure hunts that usually take place over a period of 24 hours. They feature recurring themes of cryptography, art, and conspiracy theories.

Dan Brown’s books have been translated into 57 languages and, as of 2012, have sold over 200 million copies. Three of them, Angels & Demons, The Da Vinci Code, and Inferno, have been made into films.

He is being sued by his ex-wife, who now claims he engaged in “unlawful and egregious conduct” that amounted to a “proverbial life of lies” during the last several years of their marriage.

In the lawsuit filed in New Hampshire, Blythe Brown alleges that the 56-year-old author, to whom she was married from 1997 until last December, “secretly siphoned” off vast sums of money “to conduct sordid, extra-marital affairs” with women, including a Dutch horse trainer on whom he lavished extravagant gifts.

According to the former wife the lawsuit is about standing up for myself and asserting my self-worth. I have continually tried to absorb the shocking truth withheld during our divorce that Dan had been leading a double life for years during our marriage, all while coming home to me.

Florida Marital Settlement Agreements

I have written on the topic of agreements before. In Florida, different types of agreements are treated differently. A prenuptial agreement, for example would be covered under the Premarital Agreement Act.

An agreement reached, not before a marriage like a prenup, but after divorce case has already been filed, is treated with a different standard.

That’s because after a couple become involved in full-fledged litigation over divorce property and alimony rights, they are necessarily dealing at arm’s length and without any kind of special fiduciary relationship of un-estranged marital parties or single people.

In cases like the Brown case, which involved a stipulated settlement agreement made in the course of what was likely fierce divorce litigation, a former spouse challenging a litigated settlement agreement is limited to showing fraud, misrepresentation or coercion. Any kind of inquiry into the “unreasonableness” or “unfairness” of the settlement agreement to either party is usually not permitted.

Angels and Demons

Blythe also claimed credit for inspiring much of his work and coming up with the premise for “The Da Vinci Code.” She also alleged that Brown hid scores of future projects worth “millions” from her, including a television series as well as a children’s book due out in September.

The most explosive allegations, however, are the extramarital affairs. Describing Brown’s behavior as “unlawful and egregious,” Brown said she only learned about it after the pair divorced in 2019 after 21 years of marriage.

She accuses the best-selling author of secretly diverting funds to pay for gifts to an unnamed horse trainer, including several Friesian horses and financing for his lover’s horse training business. She alleges the “illegal behavior” took place in New Hampshire, Europe and the Caribbean.

“Dan has lived a proverbial life of lies for at least the past six years, seeming to be the epitome of a world-famous novelist leading a simple life in his home state of New Hampshire, while in reality he was something quite different,” the lawsuit claims.

For years, she alleges, that Dan has secretly removed substantial funds from his and Blythe’s hard-earned marital assets to conduct sordid, extra-marital affairs with women — one half his age — and to pursue a clandestine life.

Dan Brown, in a statement, said he was “stunned” by the allegations and called the complaint “written without regard for the truth.” He said he never misled his ex-wife on their finances during their divorce and that she ended up with half their holdings after they divorced.

“For reasons known only to her and possibly her lawyer, Blythe Brown has created through this suit a fictional and vindictive account of aspects of our marriage designed to hurt and embarrass me.”

Blythe Brown, a horse enthusiast who is involved in horse and carriage driving competitions, insisted she was only filing the lawsuit to stand up for herself and assert her “self-worth.”

In her lawsuit, Blythe Brown portrayed herself as inspiring Brown to give up songwriting after the pair met in 1990 and recognizing his “unlimited potential as a writer of fiction.” She also alleges she helped craft key themes and ideas for many of his books, “served as lead researcher, first-line editor, and critic, and was Dan’s literary partner in the fullest sense.”

“Indeed, Blythe and Dan formed a partnership in the literary world that was to last for nearly thirty years, taking them places that they could never have imagined,” according to the lawsuit, in which she seeks unspecified damages.

During a 2006 trial against the publisher of the “The Da Vinci Code,” the court heard how Blythe Brown was an essential contributor to his million-selling historical thriller.

Two authors unsuccessfully sued, claiming that Brown “appropriated the architecture” of their book in a high-profile London court case.

According to witness statements and court testimony, Blythe Brown led the massive research effort, supplied countless notes and suggestions and offered an invaluable “female perspective” for a book immersed in “the sacred feminine.”

In a statement, Dan Brown told the Globe he’s “stunned” that his ex-wife is “making false claims” and says he was fair and truthful in their divorce settlement. On the day that Blythe and I married, I never remotely thought that we eventually would grow so far apart.

The Boston Globe article is here.

 

Israeli Prenuptial Agreements are Kosher

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Whether Israeli prenuptial agreements are kosher is a big question in the holy land as Israel’s version of Real Housewives, Nicol Raidman, has filed for divorce from her former oligarch and billionaire industrialist husband Michael Cherney.

Israeli Prenuptial Agreement

Land of Milk and Honey

Nicol Raidman is a businesswoman, socialite and former reality TV celebrity in Israel, who recently announced she is divorcing her billionaire husband in what is shaping up to be the most expensive divorce lawsuit in Israeli history, Channel 12 news reported Monday.

After 11 years of marriage, Raidman and industrialist Michael Cherney are dissolving their union. But Raidman is alleging that Cherney has failed to honor his prenup with her, which promised her $25 million (NIS 86 million) in any settlement.

She is now planning to take Cherney to court and demanding hundreds of millions of shekels under their prenuptial agreement.

Prenuptial agreements are generally enforceable in Israel, if authorized before a notary, a marriage registrar, or by the family court or the religious court. In fact, former Justice Minister, Ayelet Shaked, called on couples getting married to sign prenuptial agreements to ensure that husbands will not withhold a get, or Jewish writ of divorce, from their wives.

In Israel, where all divorces are subject to religious law, the norm has left thousands of women in legal limbo due to husbands who refuse to grant divorces. The phenomenon has received a lot of attention in recent years as rabbis try to battle husbands who are “get-refusers.”

Some Jewish groups mandate its members require couples to sign a prenuptial agreement to avoid such scenarios. The agreement, commonly referred to as a “halachic prenup,” generally penalizes the husband financially for refusing to give the get.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are not just for celebrity sports figures, and they are about much more than just resolving uncertainty in a marriage.

Any couple who brings any personal or business assets to the union can benefit from one. They are also important to have in place before a couple starts investing in businesses, properties and other investments. But prenups are frequently challenged in court.

Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

For example, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

Real Housewives of the Holy Land

Cherney’s lawyer told the network that any and all claims would be made to the court rather than the media. Raidman is known to be a close friend of Prime Minister Benjamin Netanyahu’s wife Sara.

In 2011-2013 Raidman took part in the Channel 10 reality television show “Me’usharot” based on the US show “The Real Housewives.” She has launched her own luxury clothing and perfume brands.

Cherney, an oligarch who made his fortune in the former Soviet Union, is a close confidant of Yisrael Beyteinu party leader Avigdor Liberman. The couple have two children.

The Times of Israel article is here.