Tag: get out of prenups

Can a Prenup Protect De Niro’s Dinero

Robert De Niro’s estranged wife, Grace Hightower, is demanding half of the actor’s half-billion dollar fortune, despite signing a prenuptial agreement in 2004. Feeling the ‘Heat’, De Niro is wondering whether his prenup is valid and will survive court scrutiny.

Void Prenup

Analyze This

According to the New York Daily News, details about the Hollywood star’s finances emerged during a hearing in Manhattan Supreme Court that revealed the two are battling over how to interpret a 2004 pre-nuptial agreement signed after a previous divorce.

De Niro attorney Krauss-Browne said that under the terms of the pre-nup Hightower was entitled to a $6 million apartment, $500,000 cash, $1 million each year and half the value of their marital residence.

“Nope, I’m entitled to 50%.”

Hightower, 64, is arguing she is entitled to much more — and that De Niro, 75, has kept her in the dark about their money since 2008. She believes she is entitled to a cut of 38 movies and 35 new business ventures since 2004 that involved the Oscar-winning actor.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just resolving the ‘Casino’ like uncertainty in a 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 in second 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.

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. Prenups can be a reliable guide down rough rivers if they’re done right.

Great Expectations

Hightower attorney Allan Mantel put the couple’s revenue since their prenup at $300 million — $250 million of which came from movies. He estimated that De Niro’s net worth was $500 million.

In addition to De Niro’s work in Hollywood, much of their earnings came from his ownership of the Nobu chain of restaurants and Greenwich Hotel.

Hightower’s frustration that she was not considered an equal led to their previous divorce in 1999, Mantel said.

“That’s what caused the first divorce — we want a partnership. She enhances his goodwill. She enhances his career. I agree you’re going to be my 50% partner’ — it’s in the agreement.”

Hightower says that part of the deal is void due to De Niro’s alleged shady accounting practices. The judge then joked:

His income will fall now that Special Counsel Robert Mueller is out of the picture — less ‘Saturday Night Live,’” the judge remarked, referencing De Niro’s appearances on the sketch show.”

De Niro sat stone-faced.

The judge made a more serious observation as the hearing concluded.

After the hearing, De Niro, as is his custom, held a newspaper over, his face and became aggravated while struggling to find his driver waiting for him outside the courthouse.

Meet the Parents

De Niro filed for divorce from Hightower in December. They are also battling over custody of their 7-year-old daughter, who they had through a surrogate. They also have a 21-year-old son.

The New York Daily News article is here.

*Photo courtesy Georges Baird

 

This is your Religious Prenup

A Detroit-area man must pay his former wife $50,000 under the terms of their Islamic prenup. Not only are prenuptial agreements on the rise among all engaged couples, they are also becoming very popular for religious couples. But is a religious prenup enforceable in the U.S.?

muslim prenup

Mehr Agreements

A Michigan man argued that a family court judge exceeded her authority by trying to resolve a religious issue in a divorce. In 2012, the husband approached Mohammed Ali and asked permission to marry Mr. Ali’s daughter.

They negotiated the terms of the arranged marriage. Mr. Ali proposed that defendant could marry his daughter if defendant paid her $51,000, a payment the parties referred to as Mehr, a traditional component of Islamic marriages.

He agreed to the payment proposed by Mr. Ali. The Wife considered the offer of marriage, on the financial terms negotiated by her father, for approximately one year and ultimately decided to accept the marriage proposal and the parties married in 2013.

Florida Prenups

I’ve written about prenuptial agreements and even about a religious prenup. Prenuptial agreements are about 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.

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 in second 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.

Without a prenup, if your spouse dies, you will have statutory rights under state law to a share of your deceased spouse’s estate and may also have a right to lump sum death benefits, or a survivor annuity under a retirement plan.

That’s where prenups come in. Prospective spouses may limit or expand these rights by an agreement. Prenups are also used to protect the interests of children from a prior marriage, and to avoid a contested divorce. Prenups can be very worthwhile provided they’re done right.”

The most basic of prenups should list an inventory of premarital assets that would stay with the original owner in case of a divorce. Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

Religious Prenup

Back in the Michigan case, it was uncontested that the Husband and Wife had only a verbal agreement for payment of $51,000, in consideration of marriage, until the day of their marriage ceremony.

During that ceremony, the parties signed a document that placed the contract to marry in writing. The one-page document signed by the parties was titled “Marriage Certificate” which is the basis for the religious prenup dispute.

The document stated that the Groom solemnly proposes to marry the bride and take her as my wife and agree to pay Mehr of $51,000 Later. Furthermore, the document stated that the Bride solemnly accepted the proposal.

During the course of the marriage, the Husband made several payments, totaling $3,900, toward the $51,000 mehr. In 2016, the Wife filed an action for separate maintenance and the Husband filed a counterclaim for divorce.

During the divorce trial, plaintiff asked the trial court to enforce the contract to marry and award her $47,100, the unpaid amount of the mehr.

The trial court concluded that the parties executed a valid, simple contract and entered a judgment in plaintiff’s favor in the amount of $47,100. In addition, the trial court granted the parties a judgment of divorce, denied the request for spousal support, and divided the parties’ marital assets.

Does Shariah Law Apply?

The Husband actually argued that the contract states on its face that it was made under Shariah law and that it was not made under any state law. But did the Mehr merely provide for a religious obligation or was it an enforceable contractual obligation under Michigan law?

The trial court clearly stated that it was not applying Shariah law, but was applying Michigan law to the parties’ contract:

“We are not interpreting or applying the contract between the parties under Shariah law, but are applying Michigan law to the review of the parties’ contract and the judgment of divorce entered by the trial court.”

In this case, neither the trial court nor this Court is required to resolve ecclesiastical questions. The trial court did not claim any power to grant the parties a divorce under Islamic law, but only the power to grant the parties a civil divorce under Michigan law.

The trial court did not decide the parties’ respective religious obligations under the tenets of their faith tradition, but only decided the parties’ respective obligations under long-established principles of Michigan contract law. Because this case does not require the resolution of any ecclesiastical questions, we conclude that defendant’s argument is without merit.

U.S. courts don’t enforce religious laws, be they Christian, Jewish or Muslim. U.S. courts enforce American law. As long as a religious agreement can be enforced without resolving theological questions it may be enforceable.

The U.S. News article is here.

 

Five Simple Reasons for a Prenup

If you’re planning on getting married this year, you may be thinking about getting a prenuptial agreement. If so, you would not be alone. More and more people have requested prenups in the past few years. Here are five simple reasons why you should consider a prenuptial agreement before you get married.

Prenuptial Agreement

Prepare for the Worst

While I have written on the topic of prenuptial agreements before, U.S. News and World Report offers an article with some pros and cons about prenups you may want to consider. For example, entering a prenup can help you prepare for the worst.

If you watched your parents’ divorce – or have close friends who have divorced – you understand that divorce can happen to anyone.

What you may want to consider is that divorce can be planned for, so that its consequences are less severe on you. For example, a prenup can eliminate stressful issues relating to alimony, property division and your inheritance.

Protection from Debt

A prenup can also protect you from your spouse’s debt. Debt is probably one of the most common reason for a prenup with people going through first-time marriages. Sadly, part of divorce means taking care of debt that was incurred during the divorce.

In a perfect world, both people walk away responsible for the debts they created. Unfortunately, that is not the law.

The problem with debt is especially important today considering how much student debt people are carrying. No one wants to get divorced and add their ex’s graduate school debt to their own. A prenup can help you in dividing debts before they become a problem.

Transparency

A prenup forces you to commit to full transparency when it comes to talking about your finances.

If you openly talk about a prenup, chances are you’ll become better as a couple at discussing details about your finances and other concerns about marriage.

During your conversations with your future spouse, you may also learn some important things about your partner. You may, for example, find out before the wedding that the person you’re going to marry has numerous lawsuits and years of unpaid taxes, what your role as a parent will be, and other issues.

Protect Valuables

A prenuptial agreement can protect valuable assets you want to stay in your family. For example, your grandmother’s diamond ring, that has been in a family for generations, and has acquired a personal significance and sentiment far beyond its market value, could be an heirloom you want to add to an agreement.

A prenup is meant to govern how assets such as investments, grandmother’s diamond ring, and property will be handled if after the marriage you decide to divorce.

Because of the importance of a prenup, if your future spouse comes to you with a prenup, and you haven’t been involved in writing it, you’ll want to bring in your own attorney.

Focus on Your Future

A prenup forces you to focus on the future. This may be a prenup’s biggest advantage and disadvantage. You are able to decide now how to handle and prepare for a future event.

The problem of course, is that no one knows what the future will bring. One person can leave a marriage much wealthier than the other. Or it could go the other way, and you could be contracted to pay your partner far more than you’re able.

That uncertainty about the future doesn’t mean you shouldn’t get a prenup. Generally, if you or your partner has a lot to lose in a possible divorce, you should consider getting a prenup. If you own a business, have a large retirement account or assets you want to pass onto your children, a prenup is essential.

The US News and World Report article is here.

 

Prenups and Immigrants

You met on a warm sunny beach in an exotic country and now want your soulmate to join you in the United States . . . but obviously you want a prenup to protect yourself. Will your prenup protect you from having to support your immigrant spouse if something goes wrong?

prenups and immigrants

Immigration Basics

Many are not aware that since 1996, the U.S. requires all immigration petitioners to promise they will pay financial support to certain classes of foreign nationals. The way the government required support is guaranteed is the famous, Form I-864, Affidavit of Support.

Most family-based immigrants and some employment-based immigrants use Form I-864 to show they have adequate means of financial support and are not likely to rely on the U.S. government for financial support.

The form requires you to promise to maintain the intending immigrant – your new wife or husband – at 125% of the Federal Poverty Guidelines (“Poverty Guidelines”) and to reimburse government agencies for any means-tested benefits paid to the noncitizen beneficiary.

But what if you and your future spouse waive this support in a prenuptial agreement and want to waive the support requirements?

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements, or prenups, are agreements you sign with your fiancé before marriage that outline how you two would end up in case of divorce or death.

A prenup can resolve things like alimony, ownership of businesses, title of properties, and for purposes of this post, spousal support and alimony. There are many other concerns that can be addressed in the prenup:

  • Caring for a parent
  • Going back to school
  • Shopping habits
  • Credit card debt;
  • Tax liabilities;
  • Alimony and child support from previous relationships; and
  • Death or disability

A few of the points of a prenup, is that you get to decide on the amount of alimony, the terms of support, or whether you will pay any alimony at all. Or can it? Because prenuptial agreements can limit how much alimony you pay, you might think that you are safe if you sign Form I-864. You might be wrong.

Building a Prenuptial Wall

The I-864 form is required in all cases where a U.S. citizen or permanent resident has filed an immigration petition for a foreign family member including for a spouse. The form is a serious concern for anyone signing a prenup.

Why? Because whether you can even may enter into a prenuptial agreement that waives a sponsor’s duties to a non-citizen-beneficiary under the I-864 is an open question in courts.

Some courts have held that prenuptial agreements which waive I-864 rights are unenforceable, while other courts have enforced the waiver in prenuptial agreements over the I-864 form. There is a split among courts.

The split decisions between different courts about the right to waive I-864 support rights creates a lot of uncertainty into whether a sponsor and beneficiary spouse can waive enforcement of the I-864.

Are a beneficiary’s I-864 rights in the nature of private rights under a contract, or would allowing waiver of I-864 enforcement allow an end-run around an important public policy?

The law is not as well settled as we lawyers like. If you are thinking about marrying a foreign national and residing in the United States, you are not alone. About 7% of U.S. marriages involve one or more foreign-born spouse.

Information about form I-864 is available here.

 

Prenuptial Agreements in Jeopardy

Many people are starting to notice that the new tax law could wreak havoc on their prenuptial agreement. If you are planning on getting married this summer, here’s a few things to consider before signing that prenup.

Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements, or prenups, are agreements you sign with your fiancé before marriage that outline how you two would end up in case of divorce or death.

A prenup can resolve things like alimony, ownership of businesses, title of properties, and even each spouse’s financial responsibilities during the marriage.

There are many other concerns that can be addressed in the prenup:

  • Caring for a parent
  • Going back to school
  • Shopping habits
  • Credit card debt;
  • Tax liabilities;
  • Alimony and child support from previous relationships; and
  • Death or disability.

A few of the points of a prenup, is that you get to decide on the amount of alimony, the terms of alimony or whether you will pay any alimony at all, and how to divide movie royalties and other assets.

And because prenuptial agreements can impact how much alimony you agreed to pay or received, the new tax overhaul comes into play heavily in your agreement.

Tax Law Overhaul and Alimony

The new tax law offers an avenue for challenge because courts will likely have to consider how the law has changed since the contracts were created.

For example, beginning in 2019, people paying alimony will be no longer be able to deduct their alimony payments. That little change in the law could mean they effectively pay double in post-tax costs compared to what they had previously agreed to in their prenups.

President Trump, who pushed the new tax law, told New York Magazine in 2006 that his prenup with Melania Trump made his marriage stronger despite being a “hard, painful, ugly tool,” he didn’t disclose any details of the agreement.

More than 60% of divorce attorneys said they had seen a rise in the number of clients seeking prenups in the previous three years, while just 1% reported a drop.

There aren’t hard numbers, but it’s fair to say that prenups have become more popular in recent years as younger Americans delay marriage, and the divorce rate has skyrocketed for people over 50 who often use prenups if they remarry.

Prenups and New Tax Changes

If prenuptial agreements aren’t amended to factor in the tax changes, it will be up to divorce attorneys to settle — or judges to decide — whether the amounts or formulas still stand for couples who divorce starting in 2019.

Even if both parties agree to an adjustment in alimony, they’ll need to agree on exactly how much to cut the payers’ obligations. Divorcing couples could end up hiring rival accountants as expert witnesses to sway judges.

For those in the top income-tax bracket — the likeliest to have a prenup — being able to deduct the payout from taxable income had been a big saving because every dollar in alimony reduces the payer’s taxable income by the same amount.

Top earners in high-tax areas like California and New York City can face marginal tax rates close to 50 percent. Without the deduction, a spouse who agreed to write a $10,000 check each month could be on the hook for what is effectively almost $20,000 in pre-tax income.

Lawmakers said they eliminated the alimony deduction to end what they called a “divorce subsidy” under the old law.

The change, which raises an estimated $6.9 billion over the next decade, doesn’t affect divorces and separation agreements finalized before the end of 2018.

However, next year the newly divorced won’t be able to deduct alimony payments, but recipients will get the money tax-free (previously, the payments had to be reported as part of their taxable income).

Ultimately, the change could hurt alimony recipients. Payers could plead with judges to revise their obligations given the new law — a valid legal argument given that many prenups specifically mention that the payments are intended be deductible.

Those potentially reduced payments are likely to overpower the benefit recipients get from being able to receive the payments tax-free because they tend to be in lower tax brackets than the payers.

The Bloomberg article is here.

 

Prenuptial Agreements: Can you bust a prenup?

Prenuptial and postnuptial agreements protect your wealth by setting out what property stays yours, what property does not, and ensuring that your assets stay in your family line. Prenups can even be used to limit your exposure to paying alimony. But can you get out of a prenuptial agreement?

What are Prenups?

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.

Without a prenup, if your spouse dies, you will have statutory rights under state law to a share of your deceased spouse’s estate, and may also have a right to lump sum death benefits, or a survivor annuity under a retirement plan.

That’s where prenups come in. Prospective spouses may limit or expand these rights by an agreement. Prenups are also used to protect the interests of children from a prior marriage, and to avoid a contested divorce. Prenups can be very worthwhile provided they’re done right.”

When Prenups are done wrong

It is important to realize that the courts will not likely enforce prenuptial agreements (prenups) in certain cases. Forbes magazine recently ran an interesting article listing some of the common problems with do-it-yourself, cheap, or downloaded prenups:

  • It is not a formal legal document. Only well-drafted agreements can override states that have community property laws or equitable distribution requirements.
  • It is a “shotgun” agreement. If there is any form of coercing a person to sign the agreement, it can turn out to be unenforceable.
  • One person failed to read the agreement. When there is proof that one or both of the spouses did not read the prenup, it might not be enforceable.
  • One party is hiding or just not sharing knowledge of all assets and liabilities. Full transparency between the prospective partners is mandatory.
  • It includes invalid provisions. These are terms that are illegal or against public policy. For example, the courts will not enforce prenups if they stray into areas such as waiving child support.
  • Each partner does not have separate legal counsel.Both parties should – and in some states, it is a requirement – have their own legal counsel so that their separate interests are promoted.
  • The agreement is unconscionable. If the prenup is so completely unfair that it puts one partner in a horrible financial situation and sets up things so the other partner is solidly financially positioned, the courts will very likely not enforce it. Unconscionable agreements are “extreme.”

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about 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.

The most basic of prenups should list an inventory of premarital assets that would stay with the original owner in case of a divorce. 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.

According to the Forbes article:

It’s not all that uncommon for mistakes to be made when putting a prenup in place. . . high-quality legal work is based in expertise and precision, which is why we diligently do everything possible to make sure our clients’ prenups do not get ‘busted.’

The Forbes article is here.

 

Celebrity Prenuptial Agreements

Prince Harry said he knew Meghan Markle was the one the first time they met. Now he’s showing his confidence in their union by rejecting a prenuptial agreement, reports the Daily Mail. What are prenuptial agreements and why does Meghan Markle want one?

The Royal Prenup

According to the article:

“There was never any question in Harry’s mind that he would sign a prenup,” one of his friends said. “He’s determined that his marriage will be a lasting one, so there’s no need for him to sign anything.”

Okay, but real talk: For one, prenups aren’t legally enforceable in the UK, although they are taken under consideration in divorce cases.

And, Harry isn’t the only royal who has shunned prenuptial agreements. Prince William and Kate Middleton reportedly didn’t sign one before their wedding, and neither did their mother, Princess Diana.

Florida Prenups

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just uncertainty in a marriage. Any couple who brings any personal or business assets to the union can benefit from one.

The most basic of these prenups lists an inventory of premarital assets that would stay with the original owner in case of a divorce.

The agreement can also include monetary support during and after a marriage, child support, and how future income or additional assets like inheritance will be shared (or not shared) if the couple splits.

Many think prenuptial agreements are for the wealthy or famous, like Prince Harry. But, you don’t always enter a marriage with riches, or guarantees that the bliss will last. It might not be a bad idea to have a plan in place – in case of intrigue at the palace.

Prenuptial agreements, typically resolve things like alimony, ownership of businesses, title of properties, in addition to the lifestyle clauses of celebrities.

There are many other, more mundane, concerns that can be addressed in the prenup:

  • Caring for a parent
  • Going back to school;
  • Shopping habits
  • Credit card debt;
  • Tax liabilities;
  • Alimony and child support from previous relationships; and
  • Death or disability.

Celebrity Prenups

Many celebrities have prenuptial agreements which can have unique clauses too. For example:

Jay-Z and Beyoncé

If this couple ever find themselves not-so “crazy in love,” the couple reportedly signed a prenuptial agreement that gives Beyoncé $5 million for each child they have together, and that Beyoncé would earn $10 million if the marriage ended before two years, and $1 million each year that they remained married, up to 15 years.

Michael Douglas and Catherine Zeta-Jones

The couple has been married since 2000, but if they divorce, Catherine would reportedly receive $2.8 million for each year of marriage, according to New York Daily News. (So, if they split today, that would add up to over $50 million.) And if Michael cheated, she would also get a $5 million bonus.

Mark Zuckerberg and Priscilla Chan

There’s no word on if the couple signed an official prenuptial agreement, but the book Once You’re Lucky, Twice You’re Good reportedly revealed that Priscilla had Mark sign a relationship agreement when she moved in with him after graduating from Harvard.

Their purported agreement required the couple to have a date night once a week and spend 100 minutes of alone time together weekly outside of the office or their home.

The Women’s Health Magazine article is here.

 

Daredevil without a Prenup

Ben Affleck and Jennifer Garner have not resolved their jointly filed divorce one year after filing. Reports suggest they never had a prenuptial agreement, which may be the reason the divorce is taking so long after they filed.

Gone Girl

The actors filed to end their 10-year marriage on April 13, 2016, nearly two years after they originally announced their split, but there are no reports of a prenuptial agreement filed.

The divorce isn’t finalized and the two have been in mediation to settle privately. The actors are seeking joint physical and legal custody of their three children.

Affleck and Garner, costarred in 2003’s “Daredevil” and wed in 2005. They announced their intention to divorce in June 2015, after 10 years of marriage, but did not file documents until now.

“After much thought and careful consideration, we have made the difficult decision to divorce,” the couple said in a joint statement in 2015.

According to TMZ, Affleck and Garner do not have a prenuptial agreement, meaning everything is on the table for negotiation and possibly trial.

Prenuptial Agreements

I’ve written about prenuptial agreements before.

Many people think prenuptial agreements are for actors such as Affleck and Gardner. That is just fiction out of Hollywoodland. Even if you don’t enter a marriage with Affleck’s wealth, it might not be a bad idea to have a prenup.

The lack of a prenuptial agreement for Affleck has probably means that a lot of issues they could have resolved at the beginning of the marriage, may have to be fought over the past year since they’ve filed..

Prenuptial agreements, or “prenups,” are contracts entered into before marriage that outline the division of assets in case of divorce or death.

A prenup can resolve things like alimony, ownership of businesses, title of properties, and even each spouse’s financial responsibilities during the marriage.

There are many other concerns that can be addressed in the prenup:

  • Caring for a parent
  • Going back to school
  • Shopping habits
  • Credit card debt;
  • Tax liabilities;
  • Alimony and child support from previous relationships; and
  • Death or disability.

A few of the points of a prenup, is that you get to decide on the amount of alimony, the terms of alimony or whether you will pay any alimony at all, and how to divide movie royalties and other assets.

Chasing Amy

Putting aside the lack of a prenuptial agreement, Affleck and Gardner seem to be doing well by their children. The whole Affleck Gardner family recently made a group trip to Sea Life Park in Oahu. “During the trip, Garner stayed at a resort while Affleck stayed at a nearby house. Additionally, there are reports that Affleck is looking to buy a home near Garner in Los Angeles.

“Ben is looking to buy a family friendly house,” a source previously told PEOPLE in October 2017. “Lindsay shared her opinions, but it was clear that they are not buying a house together.”

Affleck had been living in a rental since he moved out of the family estate he used to share with Garner. Prior to their divorce filing last April, he was living in the family’s guesthouse.

The Los Angeles Times article is here.

 

A Royal Prenup

When Prince Harry asked Meghan Markle to marry, many dreamed of her fairytale wedding. Grizzled divorce attorneys thought of something else: what kind of royal prenup would his Highness make her sign. Surprisingly, some think none.

That’s right. Some people in Great Britain are speculating that Ms. Markle and Prince Harry may not sign a pre-nuptial agreement before their royal wedding next Spring. Why not?

According to the Britain’s Daily Express, for instance, the 33-year-old prince would not take the steps to protect his £30 million fortune after his engagement to the US actress was announced by making her sign a royal prenup.

History of Royal Prenups

Many would have said anyone in their position should be advised to have royal prenup. And the reason being is so they can resolve financial matters between themselves without it being in the spotlight.

There is precedent among the Royals too. For instance, when Crown Princess Victoria of Sweden married her former fitness instructor, agreements were drawn up to define how the wealth would be divided should they separate.

Lawyers acting for the princess ensured that all property, inheritance and gifts belonging to the royal household remained in her name alone. A royal prenup may be required to do that.

After Prince William’s engagement to Kate Middleton was announced, many urged the couple to sign a prenuptial agreement, saying it was important to be practical and ensure that every future eventuality was considered.

Florida Prenuptial Agreements

I’ve written on the topic of prenuptial agreements before. A prenuptial agreement is called many things: sometimes “antenuptial agreement”, other times “premarital agreement”, or most often “prenups”.

A prenup is a legal contract, much like any other legal contract, and it is entered into before a marriage by the couple intending to marry. So, why have one?

The contents of prenuptial agreements can vary widely. However, prenups commonly include clauses that spell out how to divide property accumulated before and after the marriage, and support or alimony in the event of divorce or death.

There are times when a prenup is a “must-have”. For example, when one person enters the marriage with significantly more money or assets than the other, or you want to keep parts of your finances separate.

Arguments about money are a known predictor of divorce. In order to avoid that, it is better to discuss with each other the terms of a prenuptial agreement when times are good.

Prenups can also have extreme clauses. For example, prenups can include provisions to cover you in the event your spouse engages in excessive drug use, has extra-marital affairs, becomes an excessive spender, or begins a gambling habit.

Future Royal Prenup?

With the British Supreme Court having recognized the validity of prenups, a debate has begun in British legal circles as to whether it would have been prudent for the royal couple to have taken advantage by having a royal prenup, just in case.

Prenuptial agreements have been popular across the pond in the U.S. for many years, but were never part of British law. That is changing in the U.K. due to a relatively new case.

After a 2010 ground-breaking case in Britain, prenuptial agreements are now afforded heavy weight within the UK Family Court, unless considered to be unfair.

The British prenup case involved a German heiress and French investment banker. To help protect her £106 million fortune, the couple signed a prenup, which stated neither party would benefit financially if the marriage ended.

When the Judges found in favor of the Wife’s prenup, the case marked the first time that prenuptial agreements were recognized as enforceable under British divorce law.

Prenuptial agreements are not simply about money either. Kings, Queens, Princes and Princesses can also use prenups to ensure confidentiality is maintained after any unseemly split.

The U.K. Express article is here.

 

Prenups are Nothing New

A 2,480-year-old Egyptian scroll was recently found. But the scroll is not some royal decree from the ruling Pharaoh, or an ancient poem written on the shores of the Nile. Egyptologists report that the scroll is a prenuptial agreement.

Ancient Prenups

Written in demotic script — demotic being derived from the hieratic writing system, a kind of shorthand for hieroglyphs — the prenup was made to ensure that if the union between the signers didn’t work out, the wife would be adequately provided for.

Her compensation would include “1.2 pieces of silver and 36 bags of grain every year for the rest of her life.”

Most people have no idea that women in ancient Egypt had the same legal rights as men. Egyptian women, no matter their marital status, could enter into contracts, sue and be sued, and serve on juries and as witnesses.

In ancient Egypt, women used to be able to acquire and own property, and fairly often, they did: a fragment of papyrus from 1147 B.C., denoting thousands of land holdings names women as the owners of about 10 percent of the properties listed.

Back then, married women could file for divorce, and they were even ensured alimony — provided they had a document like a prenup, which they could write up any time before or during the relationship — at which point it would be more accurately described as a postnup.

Florida Prenups

Prenuptial agreements aren’t just for ancient pyramid dwellers, they are important for any couple planning to marry. I have written extensively on prenuptial agreements.

A prenup can help keep your non-marital property yours. The property you brought into the marriage is yours – mostly.

But over time it is common for people to start mixing things up. Inheritance funds get deposited into joint accounts; properties get transferred into joint names…and all for good reason.

Unfortunately, tracing commingled property is expensive, and hard to prove. But, if you put it in writing at the beginning, you might be able to avoid this task, and save some money down the road.

Prenuptial agreements also help you to change the law. For example, right now in Florida, there has been an ongoing debate about alimony. When you go to court, a judge has to follow state law regarding alimony.

However, through prenuptial agreements you can modify Florida’s legal standards for awarding alimony, in addition to modifying what the current law says about the amount of support and the duration of the alimony period.

Nile Negotiations

This ancient Egyptian prenup was signed in 365 BCE. Such contracts were extremely advantageous to the wife. The prenups were purely economic, promising not eternal faithfulness or mutual responsibility – but cold, hard cash.

The ancient Egyptian prenup ensured the wife could survive with or without her husband, although she had to pay for the privilege, giving him 30 pieces of silver upfront in exchange.

The prenup process was simple in ancient Egypt. The marrying couple would get together, and bring along a scribe and some witnesses. The person proposing the agreement would speak it aloud, and the scribe would write the terms down, translating them into legal language along the way.

Then the second person would either accept or refuse to sign the prenup. If he or she accepted, the contract was considered binding. If one of the signatories broke the terms, he or she would appear before a court.

The Atlas Obscura article is available here.