You might not think that you and the world’s richest man, Jeff Bezos, have much in common. However, there’s a chance that you could end up facing a very similar problem if you don’t protect yourself and your assets before entering into a marriage.
So don’t be blinded by love! Even if you’re the richest man or woman in the world, you need to ensure that your assets and finances are protected for any future position you find yourself in, no matter how big or small your fortune!
Mr Bezos, the founder of global e-commerce giant, Amazon, may be about to lose the title of the world’s richest man. His net worth currently stands at an eye-watering $137 billion USD but he is set to lose half of that fortune of $69 billion USD through the process of divorcing his wife, MacKenzie.
The multi billionaire seemingly didn’t have a prenuptial agreement in place before marrying 25-years-ago. If he had had the foresight, he could have avoided this huge blow to his fortunes.
This scenario could affect any of us, although granted on a much smaller scale. So to avoid this from happening to you, if you and your spouse ever decide to divorce in the future, you need a prenuptial agreement in place before you tie the knot.
What is a prenuptial agreement?
A prenuptial agreement is put into place before you get married and is a contract that defines how any possessions and finances you individually or jointly own would be shared if the relationship was to fail in the future.
The agreements can be as short or as lengthy as required by the couple and their circumstances. The content often varies depending on the couple’s personal preference and what they want to include in the contract. The most basic agreement lists your premarital assets, so in the event of a divorce the assets remain the property of the original owner.
More in depth pre-nups clarify the financial rights and responsibilities of the couple during the marriage and the distribution of property and assets upon divorce. An agreement could also protect you from your partners pre-existing debt and can lay out instructions for any future inheritance or earnings.
When would you need a pre-nup?
Prenuptials could be seen as the beginning of the end before the relationship has even truly begun, however they clearly define where both parties stand in the relationship and who is responsible and entitled to what. The agreement will be created based on full financial disclosure by both parties who should both separately seek individual legal advice.
It is strongly advised to have a pre-nup drawn up before you get married regardless of how little assets you have.
How can I find out more information?
For more information, please contact our specialist legal family team on 0800 614 722 or visit your local office.