As you may have learned, Amazon’s Jeff Bezos and his wife MacKenzie are getting a divorce. It appears they did not have a Prenuptial Agreement. Because they live in Washington, which is a community property state, absent any other agreement, they will split their $140 Billion +/- fortune down the middle. Big money divorce! Big potential haul for the divorce lawyers. It is likely there will be an agreement at a number that is not 50/50.
Startup Marriage vs. Acquisition Marriage
Jeff and MacKenzie met before Jeff started Amazon. They were both in their 20’s when they got married. This is an example of a Startup marriage: Both parties are young with minimal difference in assets between them and no major asset to protect through a prenup. Thus, though it sounds like a gross miscalculation on Jeff’s part not to have had a prenup, it makes sense given where the couple was when they got married. There are no thoughts of a prenup when you are basically in the same place financially and there is nothing to protect.
It is a different story in an “Acquisition” marriage. This is typically where the parties are older and have accumulated significant assets prior to meeting and/or marrying the other party. Often, this could be not the first marriage for one or even both of the parties, and children from the prior marriages are involved. Though it can be a delicate subject to discuss when both parties believe they are on the road to bliss, it can be a smart and very important financial planning move to protect your assets through a prenuptial agreement.
First, Get a Financial Planner
If you are, say, 35 or older and have stars in your eyes for someone else, don’t fly without a net. Protect yourself first by working with a financial planner develop a plan for your assets prior to jumping into the marriage. Developing such a plan would be your brain ruling. Smart, rational thinking. Not the other. Do you have kids from a prior marriage, and you want them to get your assets when you pass and not your new spouse’s prior kids? Work with a financial planner, who will probably bring in an attorney, and get yourself a prenup and a will. While you are at it, make sure you have a Medical Power of Attorney agreement. Do you want your new spouse calling the shots on when to pull the plug, or do you want your prior kids making that horrible call? That all needs to be spelled out before you are unable to do so. Getting a Financial Planner is the important first step that will save a lot of pain later on.
IMO
Everyone thinks they are going to stay married forever, but everyone also is aware of the statistics, and so while a Prenup may be the Head getting in the way of the Heart, it is very important to get all of your ducks in a row before get married and mix too many metaphors. I will be glad to discuss any of this with any of you, so contact me if you see the need.