The other day I was reading an article on www.bleacherreport.com when I came across an article about Michael Jordan's prenuptial agreement with his fiancé. His first marriage ended in divorce and he paid his ex-wife, Jaunita, $160,000,000.00 to settle their post marital affairs. For most people that settlement amount would be considered fair. However, there are some people who believe that she deserved half of Jordan's massive empire. Either way, with his new marriage, Jordan has entered into a prenuptial agreement. The terms of the agreement provides that his fiancé would receive one million dollars per year for every year they are married. Once they have been married ten years, she would receive five million dollars per year for each year thereafter. So, if they are married for 12 years and then are divorced, she would receive 20 million dollars.
What is a prenuptial agreement? It is a legal contract between two parties before being married. These agreements can cover many things including real or personal property and cash investments. Reading about Michael Jordan's agreement made me think about these contractual agreements. Would I sign one? Would I ask someone to sign one? Would I be offended if someone asked me to sign one? Would you sign a prenuptial agreement? The answer to all these questions is the same for most people-it depends.
The main argument in favor of prenuptial agreements is that the agreements guarantee a certain degree of protection for the party with the most assets. When properly drafted, these agreements ensure that the distribution of property will be reasonable. However, Reasonable minds can differ with respect to what is "reasonable." Some compare these agreements to homeowner's insurance policies. For instance, how many people purchase homeowner's insurance policies because they believe their homes will be destroyed? By comparison, how many people enter into a marriage believing that it will not stand the test of time? I think the answer to both questions is "No."
There are a few arguments against prenuptial agreements. I think the biggest argument is that people believe that entering into a prenuptial agreement means that the parties do not believe that their marriages will be successful. The other argument against these agreements is that they only consider tangible things such as personal or real property. These agreements do not consider intangible qualities such as love and marital vowels.
I understand and respect arguments on both sides. Under the right circumstances, I believe prenuptial agreements are reasonable and necessary.
Peace
“Under the right circumstances, I believe prenuptial agreements are reasonable and necessary.”—We share the same sentiments, Nupe! There are lots of wedding failure stories that left an embarrassing mark on both parties. And so to avoid this, signing a prenuptial agreement can be a good help. I believe it is one way of protecting not only your wealth, but your dignity as well.
ReplyDeleteFerdinand Draper
Couples agree to be united as one in marriage, but they can still choose to make decisions based on their free will. Anyway, having a prenup is not a sign of mistrust; it's just a sign that one chooses to be responsible enough to protect his or her family's future from uncertainties. As long as it is properly drafted – reasonable and fair – then there's no reason not to have one.
ReplyDeleteIt’s not for the lack of trust, but to protect yourself; not from the person you’re about to marry, but from unforeseen circumstances. So, while I respect the arguments on both ends, I also believe that prenuptial agreements are reasonable and necessary. Thanks for sharing your input on this!
ReplyDeleteAudrey Butler @ The law office of Amy E. Goodblatt, P.A