Jeff Bezos’ divorce highlights usefulness of prenuptial agreements

Personal Finance


Even if you don’t fancy yourself the next Jeff Bezos, it can be worth thinking about your current assets and potential for future wealth before you get married.

Amazon’s billionaire CEO and his wife, MacKenzie, announced Wednesday via a tweet that they intend to divorce. TMZ reported Thursday that the couple did not have a prenuptial agreement, and it’s unclear whether they had a postnuptial agreement. Experts say the distinction could be costly for the world’s wealthiest man, whose fortune is estimated at $136 billion.

Prenups and postnups set out rights to property and responsibilities for a couple in the event of a death or divorce, said Michael Stutman, a founding partner of Stutman Stutman & Lichtenstein in New York. Prenups are agreements made before a marriage; postnups, after. Absent either of those legal documents, state laws come into play that can govern distribution.

“There are as many reasons as there are people in Manhattan to want to see your assets handled in a different way,” said Stutman, who is a past president of the New York chapter of the American Academy of Matrimonial Lawyers.

Washington state, where Bezos and his wife reside, is one of a handful of “community property” states where, as legal guide Nolo puts it, “money earned by either spouse during marriage and all property bought with those earnings are considered community property that is owned equally by husband and wife.” Put another way, Bezos — who got married before he founded Amazoncould be half as wealthy after a trip to divorce court.



Source link

Products You May Like

Articles You May Like

Large fund firms’ support for combating climate change is all talk
Conquer your personal finance fears by forming a few easy habits
Why women will fall short in retirement, even if they wait until 67
There was mysterious selling in FedEx on Tuesday before poor earnings took down the stock
5 quirky tax deductions you may not know about

Leave a Reply

Your email address will not be published. Required fields are marked *