Tag: prenups and postnups

Mistakes In Your Agreement

What happens when you discover mistakes in your marital settlement agreement? Family and divorce lawyers are always interested in protecting their clients, and themselves, against mistakes. When agreements are entered into fast and furiously, mistakes can happen. One married couple in Florida found out just how courts look at mistakes in a marital settlement agreement.

Mistake Divorce Agreements

Fast and Furious Divorce

In 2019, the wife filed for divorce. In their in pretrial stipulation, the parties agreed they would each keep their own cars and pay their respective car loans. However, their agreement was not specific as to what type of car each party owned and which care they would keep.

At their final hearing, the trial court entered a final judgment and incorporated their agreement. The husband kept the 2010 Mercedes and the wife kept the 2005 Mercedes.

About a month after their divorce the wife asked the family judge to correct their final judgment, arguing, in part, that the 2010 Mercedes actually belonged to her, that they no longer owned the 2005 Mercedes, and that they actually owned a 2015 Mercedes. The Husband argued in response that the 2010 Mercedes was really his car, and that there was no error in the final judgment.

During the hearing on her motion, the wife told the judge the 2010 Mercedes is titled in her name, it was her Mother’s Day gift for herself, and they intended for her to keep the care when they signed the agreement.

The husband argued that they purchased the 2010 Mercedes after being in a car accident with their previous vehicle. The couple alternated which vehicle they drove based on their needs. Before their divorce, the husband testified that it was always his understanding that he would keep the 2010 Mercedes when entering into the agreement.

Following this hearing, the court found a mutual mistake in the agreement and final judgment should be set aside. The trial court entered a Consent Order Equitably Distributing Vehicles giving the wife a one-half interest in the 2010 Mercedes and sole possession of the 2015 Mercedes. The husband appealed.

Florida Setting Aside Final Judgments

After a final judgment is entered in a divorce, courts are limited in granting relief, but not entirely. For example, a court can relieve a person from a final judgment because of things like, mistake, inadvertence, surprise, or excusable neglect, newly discovered evidence, fraud and the like.

Motions seeking relief from a judgment usually must be filed within a reasonable time, and usually not more than 1 year after the judgment. However, there is no time limit in Florida if the motion for relief is based on a fraudulent financial affidavit in marital or paternity case.

Fate of the Furious

On appeal, the husband argued that, at most, there was a unilateral mistake on behalf of the wife, which is insufficient grounds to set aside the final judgment.

The appellate court agreed. A marital settlement agreement may be set aside when it is entered into as a result of mutual mistake. However, a mutual mistake occurs when the parties agree to one thing and then, due to either a scrivener’s error or inadvertence, express something different in the written instrument.

But if the mistake is due to your own negligence and lack of foresight and there is absence of fraud or imposition, equity will not relieve you.

In this case, the parties’ agreement provided that “each party shall keep their own vehicle. However, there was no evidence regarding the vehicles at the final hearing, and the motion for relief filed afterwards only showed that the parties’ testimonies contradicted each other. The order was reversed and the original agreement and its disposition of the cars was reinstated.

The appellate decision is here.

Celebrities and Prenuptial Agreements

The news from Nashville is that academy award winning actress, Reese Witherspoon, has initiated divorce proceedings against her husband Jim Toth. The divorce announcement is a reminder that prenuptial agreements are not only for protecting celebrities.

Prenuptial agreements

Not So Clueless

Reese Witherspoon is a very successful actress, and winner of an Academy Award, a British Academy Film Award, a Primetime Emmy Award, and two Golden Globe Awards. She ranks among the world’s highest-paid actresses. Witherspoon also owns Hello Sunshine, a media company she started during the marriage with Strand Equity Founder and Managing Partner Seth Rodsky.

Witherspoon has confirmed the couple’s 11-year marriage is ending in divorce. According to court documents, she has cited irreconcilable differences as the reason behind the divorce. The divorce was filed in a circuit court in Nashville, where the couple live with their 10-year-old son.

Reports indicate that court documents she filed reveal that the couple signed a prenuptial agreement in March 2011. In the court documents, Witherspoon alleges that the prenuptial agreement is valid, and that their prenup will provide “adequate and sufficient provisions” for the distribution of their assets and debts.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are not just for celebrity, academy award winning actresses. They are also about more than just resolving what to do with a successful media company created 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 a prenuptial agreement can enter into a premarital agreement with respect to their rights and obligations in any of their property. Whenever and wherever property was acquired or where it is located; couples can control their right to buy, sell, use, transfer, or otherwise manage and control their property if they separate, divorce, or die.

While prenuptial agreements may be challenged in court, we will have to wait and see if Witherspoon’s husband will try to avoid their prenuptial agreement. 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.

Divorce in Pleasantville

In court documents, in addition to alleging the couple has a prenuptial agreement in place, Witherspoon also asks the court to designate her and Toth as joint custodians of their 10-year-old son. Witherspoon and her CAA talent agent husband announced their divorce in a joint statement, just days before their 12th anniversary.

They announced personal news to share. They also stated it was with a great deal of care and consideration that they have made the difficult decision to divorce. They mentioned they have enjoyed so many wonderful years together and are moving forward with deep love, kindness and mutual respect for everything they have created together.

“Our biggest priority is our son and our entire family as we navigate this next chapter. These matters are never easy and are extremely personal. We truly appreciate everyone’s respect for our family’s privacy at this time.”

The People article is here.

Google Divorce and Prenups

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.

Israeli Prenuptial Agreements are Kosher

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.

 

Prenuptial Agreements Take Center Field

Prenuptial agreements take center field, former Cardinal center fielder, Jim Edmonds, is finding out. That’s because his estranged wife, Meghan King, is trying to strike out their prenuptial agreement after the divorce was filed. Can prenuptial agreements be challenged?

Prenuptial Agreement Center Field

Play Ball!

Baseball is back in the news this summer, and retired slugger Jim Edmonds, is not having a great season. The four-time All-Star, who played 17 seasons most of which with the St. Louis Cardinals and California/Anaheim Angels, was hospitalized for pneumonia earlier in the year, and now admits he tested positive for the coronavirus.

But striking out a prenuptial agreement is the play of the day. Prenuptial agreements set out what property stays yours, what property does not, and ensure that your assets stay in your family line for the benefit of your children from another relationship and other reasons. Prenups can even be used to limit your exposure to paying alimony.

But can Meghan get out of her prenuptial agreement? Jimmy Baseball’s divorce is at a standstill until a judge decides if his prenuptial agreement is valid.

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.

Batter Up!

According to reports, Meghan herself has publicly explained the agreement was done at her urging because she didn’t want Jim’s family to think she was trying to take his money.

The mom-of-three openly discussed the matter throughout her time starring on the Bravo reality TV series and explained why she was so adamant about moving forward with a prenup.

“Way before we ever got engaged, I suggested him getting a prenup to protect his feelings about our marriage, about where my heart is coming from. And honestly, a big part of the reason, totally aside from the whole marriage thing, why I wanted it is to protect the children because I never wanted the children’s mothers or the children to think that me as their step mom or as this new person in their life was going to take things from them.

Jim, 49, has four kids of his own from previous relationships. He and Meghan welcomed three kids, daughter Aspen and twin boys Hart and Hayes, during their marriage. They split custody 50-50.

Additionally, reports say Jim is paying Meghan “more than three times” the amount of child support that’s been suggested by the court and continues to foot the bill for many of her living expenses. He is letting her live in one of his homes in St. Louis and is paying the mortgage and all the bills for that house. He gives her money for her full-time nanny and housekeeper.

He pays for practically every single expense related to the children. And, if that wasn’t enough, he pays half the rent on her Los Angeles beach house. Jim has been beyond generous to Meghan and provides full financial support for his children,” the rep asserts.

Meghan has told E! News:

“I’m looking forward to putting this behind me amicably and I don’t wish to discuss the private details of my divorce at this time.”

In an Instagram comment shared by Meghan and captured by tabloids last month, she shot down one follower’s claim that she’s received “serious child support” from her estranged husband.

“Girl I have a career thank you very much!” she wrote back. “That child support is not buying me gold and baubles. It barely pays for groceries for my tribe!”

The E!-online article is here.

 

Millennials: The New Prenup Crowd

As the New York Times reports, these days, millennials are being credited with the recent spike in prenuptial agreements and postnuptial agreements. With the wedding season in full swing, the rise of a new prenup crowd could mean the downfall of the stigma typically associated with them.

New Prenup Crowd

AAML Statistics

According to a study by the American Academy of Matrimonial Lawyers, 62% of attorneys surveyed saw an uptick in requests for prenuptial agreements, with 51% citing an increase in millennials asking for the protection.

One likely reason: The Generation Y crowd is marrying later than previous generations, with years to build up assets and debt on their own. The term Millennials refers to the generation of people born between the early 1980s and 1990s. The Millennial Generation is also known as Generation Y, because it comes after Generation X — those people between the early 1960s and the 1980s.

That new approach of Millennials accounts for the changing role of women in the work force, too. In 1980, just 13 percent of women who lived with a male partner earned at least half the couple’s income — today, that number has nearly tripled.

So, while prenups traditionally protected the party with money — which often was the man, and which often led to resentment — millennials usually tackle the agreements as a team.

Florida Prenups

I’ve written about prenuptial agreements before. 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.

Millennial Prenups

Another factor in the rise of the new prenup crowd could be practicality, as more than one-third of millennials grew up with single or divorced parents. Though it’s easy to think of a prenuptial agreement as a “divorce contract,” many legal and financial experts view it as a smart business move.

“It’s such a good idea to go into the marriage understanding that — while it’s first

Several reasons you may want a prenup include:

  • Own property or a business
  • Have children from a previous relationship, or have been married before
  • Plan to take time off to raise children
  • Hold significant debt
  • Have robust retirement accounts
  • Will receive stock options during your marriage
  • Feel that a prenup might be a good fit for you? Here’s how to get started.
  • Talk to your partner, sooner rather than later. By starting early, you’ll allow time for multiple discussions — and prevent your fiancé from feeling forced or rushed into something he or she doesn’t understand or agree with.

When you hire a lawyer to complete your prenup, he or she will request all your financials — bank and investment accounts, tax returns, insurance policies, debts — so it’s wise to start compiling that information now.

And, though it might seem like a headache, getting a clear picture of your finances is always a good idea — especially before you merge your life with someone else’s. One thing you must omit: issues of custody or support for future children, as those decisions are made in the best interest of the child at the time.

Ready to make it official? You and your betrothed will each need to hire a lawyer. Depending on the level of complexity and negotiation, legal representation for a prenuptial agreement can cost $2,500 and up.

As long as you work with your fiancé in a team, a prenup can bring you closer together — rather than further apart.

The New York Times article is here.

 

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

 

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.

 

A Prenup Guide Down the Amazon

Twenty-five years after marrying, Jeff Bezos announced he is filing for divorce from MacKenzie. Unless there is a prenuptial agreement to guide them, investors holding high-priced shares of Amazon will be wondering if they should proceed to checkout.

Prenup

Prime Divorce

According to CNN, the Bezos are the world’s richest couple, and they recently announced they are getting a divorce “after a long period of loving exploration and trial separation.”

The divorce could drastically reduce Bezos’ stake in Amazon and open the door for his wife to become one of its largest shareholders, with new leverage at the company.

Given that Amazon launched after the pair were married, virtually all of Jeff Bezos’ current $137 billion net worth could be considered community property and have to be equally divided.

But is there a prenup or post-nup agreement to guide them?

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just resolving uncertainty in a marriage.

When a spouse is also the CEO of Amazon, they can be a guide past dangerous price swings. For example, when the CEO of Continental Resources was getting divorced, shares of his company dropped 2.9%. Conversely, when Rupert Murdoch announced his divorce, shares of News Corp gained 1.4%.

Why? Because in Rupert Murdoch’s case, the divorce announcement stressed the parties’ prenuptial agreement, that there would be no spin-offs, and a divorce would have “zero impact” on the company

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.

Proceed to Checkout?

It is not known whether the Bezos have a prenuptial agreement. It’s also unclear where they might file for divorce. Assuming there is no agreement, the Amazon CEO may need to either sell off or transfer half of his stake in the company to fulfill an equal split for the divorce.

Unlike other tech CEOs, Jeff Bezos’ control over Amazon doesn’t come from having a majority of voting power at the company, but rather from a strong leadership track record over two decades.

Divorce without a prenup can hit publicly traded companies hard. CEOs might be forced to sell or transfer shares as part of a property division. Selling shares can reduce a CEO’s influence and impact decisions regarding corporate strategy, asset ownership, and board composition. Divorce also impacts productivity, concentration, and energy levels because divorce is stress, and divorce can change appetite for risk.

The CNN article is here.