In his latest column for Financial Advisor Magazine, Cordell & Cordell Principal Partner Joe Cordell explained how crucial prenuptial agreements are for high-net-worth marriages.
The divorce process is the same regardless of how much is in your bank account, but high-net-worth individuals will likely have a more complicated case because they have more to lose in the settlement.
“For this reason, a properly drafted and enforceable prenuptial agreement is crucial for high-net-worth marriages to protect the assets of the party bringing the majority of the wealth into the marriage, as well as ensure all parties are taken care of if the marriage results in divorce,” Mr. Cordell said.
Mr. Cordell compared two different high-profile divorce cases that recently made headlines: that of billionaires Harold Hamm and Ken Griffin.
Hamm failed to secure a prenup prior to marriage and his divorce ended with him signing a check for nearly $1 billion. Griffin, on the other hand, appeared to protect his assets after his prenup was upheld in court.
Although prenups are a great tool to safeguard your finances and other assets, courts do have the ability to toss out the agreement if they feel it was not drafted in good faith or the other party successfully disputes its validity. Therefore, consult with a family law attorney and financial advisor when drafting a prenup.
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