The biggest news in the world of prenups is, once again, the lack thereof. Paul McCartney got it handed to him by a judge last week, ordering him to pay $48.7 million to his ex, Heather Mills, plus $70,000 a year in alimony. This gave Paul what was really a win by only awarding 20% of the $250 million Heather was seeking after their four-year marriage. Despite finding Paul to be "honest" and Heather to be an "inconsistent and inaccurate witness," the judge's decision, unfair as it may seem, is not likely to be appealed.
Unlike in the US, prenups in the UK are only influential, not binding on a court. However, the Brits are following our lead, with more and more judges enforcing pre-marital contracts that are fairly entered into beyond what their laws even require. Nonetheless, it doesn't matter which country you're in - if you DON'T have a prenup, you are submitting to the broad discretion of a judge to determine your financial fate. Optimism aside (Paul is quoted as saying he thought it was for life), it just doesn't make any sense not to have a contingency plan to give you some certainty in case things don't work out.
Wednesday, March 19, 2008
Friday, March 7, 2008
Free Publicity is Good Publicity
About a month ago, I was contacted by an editor of the Times Publication, a Phoenix community newspaper that publishes about 125,000 issues monthly throughout the Valley. She was researching an article on prenups, and I was excited to be asked to contribute. The article, which you can read on-line here, unfortunately does more to spread the sensational negative side of prenups, than provide the facts I was hoping for. Still, I guess free publicity is good publicity. At least she accurately addressed the growing trend and some positive reasons for having one.
The truth is that the behavioral clauses she talks about, the ones in which unnamed celebrities purportedly require weight limits and sex minimums, with financial repercussions for non-compliance, are not only uncommon, they are usually unenforceable. The thing to understand is that a prenup really is only limited by your imagination. It is yours to create, otherwise you acquiesce in some stranger deciding the terms of your marriage for you. However, your focus should be on your finances, leaving the "lifestyle" agreements to a private letter between you and your partner.
The truth is that the behavioral clauses she talks about, the ones in which unnamed celebrities purportedly require weight limits and sex minimums, with financial repercussions for non-compliance, are not only uncommon, they are usually unenforceable. The thing to understand is that a prenup really is only limited by your imagination. It is yours to create, otherwise you acquiesce in some stranger deciding the terms of your marriage for you. However, your focus should be on your finances, leaving the "lifestyle" agreements to a private letter between you and your partner.
Sunday, March 2, 2008
Bridal Show Blowout
A week ago, we had the immense pleasure of hosting a booth at the Tucson Bridal Show at the beautiful Hotel El Conquistador in Tucson's northwest foothills. We had an incredible turnout, with hundreds of brides signing up to win our drawing for a free stay at Bahia Brisas, a privately owned luxury penthouse in Historic Mazatlan. (Check out this incredible place for your next getaway). I was not so sure brides would be receptive to hearing about prenups, when they were clearly there to plan their fantasy wedding day. But I took the challenge head-on with my sign which read: Don't just plan a wedding. Prepare for Partnership. I thought it was brilliant.
And to my delight, over half of those we spoke to were open to learning about prenuptial agreements, and many signed up for a free consultation with the firm. Other reactions were interesting, with some couples averting their eyes from me, and each other, or giggling nervously at the mention of the "P" word. It was surprising how many were already subconsciously sticking their heads in the sandy beaches of denial.
Like most people, they had no idea what the laws were that would determine their financial fate once they were married, let alone did they realize they had the option to opt out of those laws by creating their own in a prenuptial agreement. At the very least, I think we opened a few minds and got them thinking practically about the financial partnership they were contracting into by getting married. The best part I think was the parents. One dad came right up and said, of all the money I'm going to shell out today, the money I spend with you will likely make the most difference. Here's to Happily Ever After!
And to my delight, over half of those we spoke to were open to learning about prenuptial agreements, and many signed up for a free consultation with the firm. Other reactions were interesting, with some couples averting their eyes from me, and each other, or giggling nervously at the mention of the "P" word. It was surprising how many were already subconsciously sticking their heads in the sandy beaches of denial.
Like most people, they had no idea what the laws were that would determine their financial fate once they were married, let alone did they realize they had the option to opt out of those laws by creating their own in a prenuptial agreement. At the very least, I think we opened a few minds and got them thinking practically about the financial partnership they were contracting into by getting married. The best part I think was the parents. One dad came right up and said, of all the money I'm going to shell out today, the money I spend with you will likely make the most difference. Here's to Happily Ever After!
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