Thursday, May 22, 2014

Does George Clooney Need a Prenup?

When George Clooney – one of Hollywood's most eligible bachelors – announced his recent engagement, I heard many comments about Mr. Clooney’s need for a “prenup” a common nickname for a Premarital Agreement What struck me about the “prenup” comments were that nearly all of the commenters thought that a “prenup” was only necessary for the wealthy.

The reality is that a “prenup” can be used for a variety of reasons. It may be that people with money do not need a “prenup” because they have sophisticated asset/debt planning already in place and a marriage may not affect those plans. The reality is that it may be that people with very little resources are the ones that need a “prenup” based on future employment risks, accumulation of debt, or any other financial matters that the future spouses wish to figure out at the beginning. Another reality is that people entering into a second marriage may have financial issues related to children that need some type of attention.

There are many reasons why getting a “prenup” is a smart decision regardless of whether you are rich or of modest means. People need to get beyond the concept that a “prenup” is only a map to divorce. A “prenup” is a contract that smart adults can agree to that handles the “business” side of marriage – which every marriage has -- and may never be used in the context of a divorce.

Whether you are getting a “prenup” or not is the decision for each couple to make. But, it would be foolish not to have the discussion before getting married so that you explore what benefits a “prenup” may give both future spouses. In other words, pay as much attention to the “business” of your marriage that you would to all other aspects of your relationship.

More about Prenuptrial Agreements