High-asset divorces are sometimes more difficult than a traditional divorce, in that the division of property and financial elements is more complex. These can range from bank accounts, business holdings, real estate, retirement accounts and more.
Prudent high worth individuals may seek a prenuptial agreement prior to marriage in order to protect certain assets from division during a divorce. In some cases, a prenuptial agreement is able to protect future assets or earnings.
Provisions to include in a prenuptial agreement
No one hopes for a divorce, but America’s richest individuals get divorced at rates that are similar to average, blue-collar citizens. However, these individuals tend to have more at stake in the event of a divorce and often preemptively protect their assets prior to tying the knot. Prenuptial agreements offer some protection during a divorce, including financial situations that have yet to occur or assets that are not yet accrued. The retention of future earnings or assets requires specific inclusion in a prenup if you are to keep it during a divorce.
Claiming rightful marital property
There are many factors that can determine which way the division of marital property occurs. A prenup identifies any initial marital property, indicating which party maintains responsibility for contributing it to the marital arrangement. Typically, the division of property is proportional to the initial contribution. Legal counsel is beneficial for presenting a convincing argument before the court for rightful ownership of property.
Prenuptial agreements are not a requirement for a marriage between high-net-worth individuals, but they can be a benefit to both parties. It can protect both current and future assets.