After nearly 20 years of marriage, Hollywood and country music A-listers, Nicole Kidman and Keith Urban have decided to call time on their relationship. It’s not uncommon for the unions of high-profile celebrity couples to reach the end of the road, but the details of the pre-nuptial agreement Kidman and Urban entered into before their marriage in 2006 raised more than a few eyebrows.
It’s not uncommon for the super-rich to take out watertight pre-nuptial agreements. After all, people who enter a marriage with their own wealth and assets want to ensure they’re protected.
But what about if you’re not ‘super-rich’? Do you still need a pre-nup?
Our answer? Yes. Possibly even more so. And here’s why.
Be smart about your resources
Hashing out and negotiating the details of a divorce without a pre-nup costs money, but also your emotional resources.
Going back to Kidman and Urban, their prenup contained a rather interesting ‘cocaine clause’ whereby Urban would earn as much as $600,000 a year for every year he stayed sober during the couple’s marriage. If the numbers add up, he could be walking away with nearly $11.5m from that single clause alone.
For the super-rich, this might not dent their pockets, but not everyone has the resources to include provisions like this. However, this isn’t what you’d call an average prenup, or an average level of wealth.
Addiction can put an awful strain on a marriage, as can lots of other things – including the finances. When a marriage breaks down, for whatever reason, digging into the details can be expensive for anyone. But for the average-income couple, or even those with above-average wealth, it can really take a financial toll.
The lesson? A prenuptial agreement is a smart move for any couple who wants to avoid costly negotiations and proceedings that can be both financially and emotionally draining.
Being money-safe
Even if you don’t have wealth in the present, pre-nuptial agreements can help you protect any potential future wealth – for example, an inheritance.
It can also make things a lot clearer if you have children from a previous relationship, and ensure that any wealth you bring into your new marriage is protected to provide for them if that’s what you want. Of course, it’s also essential to have this stated in your Will, too, and to seek advice about how you own any property with your new spouse.
Financial infidelity or abuse are other things to consider. They’re the cause of a rising number of separations – whether this is secret bank accounts, credit cards or debt. Having a solid prenuptial agreement in place can provide you with a level of protection from liability for debts incurred by the other person should the relationship come to an end.
Protecting a business
If you’re self-employed or running businesses, pre-nuptial agreements are a sensible choice.
They allow you to state clearly that your shares in the business are (if you want them to be) separate from the marital pot. You could also include a clause that prevents your ex-spouse from trying to buy your shares at a later date, and include a confidentiality agreement.
You can read more about protecting business interests here.
Taking out a pre- or post-nuptial agreement doesn’t make you cynical or unromantic. It makes you smart. Such an agreement allows you to have honest and open conversations based on trust, leaving you and your spouse knowing exactly where you stand.
And remember, you can always make changes to your prenup if circumstances change. To protect the things you’ve earned, and to secure a future that’s fair for everyone, talk to us about pre- and post-nuptial agreements today.
Stephanie Douthwaite is a partner and solicitor with a background in corporate, commercial, and family law. Her strong legal acumen makes her well placed to negotiate matters involving business interests, complex financial circumstances, and pre- and post-nuptial agreements. Stephanie also supports clients with her experience of collaborative law and mediation, as well as high-stakes Children Act proceedings. Described as ‘absolutely brilliant’, ‘first class’, and ‘empathetic and understanding’, email enquiries@harrogatefamilylaw.co.uk to enquire about how Stephanie can help you.
