View Post

Prenuptial Agreements Protect Both Partners

In Separation & Divorce, Wealth by Elizabeth Stephenson

Whenever celebrities or powerful public figures announce a divorce, people flock to TMZ or other gossip sites to see if there was a prenuptial agreement (or prenup). The general idea behind this fascination is that without a prenuptial agreement, all of the marital property earned and acquired during a marriage is subject to getting spilt in half between the parties. So, when a super-wealthy pop singer marries, then divorces her backup dancer husband without a prenup, the headline becomes: pop singer loses half her fortune in divorce. Unfortunately, these headlines are misleading as they ignore the fundamental idea behind marital property—that both spouses make a balanced contribution to the marriage, household, and children. In addition, they create a one-dimensional picture of what prenuptial agreements are actually used for in practice. …