How Do Prenuptial and Postnuptial Agreements Differ for High-Net-Worth Couples?
A prenuptial agreement is entered into before marriage, while a postnuptial agreement is entered into after marriage. While any couple can enter into these agreements, high-net-worth couples have more at stake and more to lose. Some of the unique challenges high-net-worth couples may encounter include:
High Earning Potentials
High-net-worth people often have higher incomes. In addition to thinking about current property, they must also consider their future incomes. In California, all income earned during marriage is generally considered community property and is subject to a 50/50 split. If they want a different arrangement, they can create a pre- or postnuptial agreement that provides for it.
Large Inheritances
Wealthy individuals may receive an inheritance during the marriage. While inheritances are generally considered separate property under California law, it’s possible that they can become community property if they are mixed together with other community assets. A thorough prenuptial or postnuptial agreement can clearly state how future inheritances are to be handled.
Complex Compensation Packages
Doctors, lawyers, bankers, business owners, CEOs, and other professionals may have complex compensation packages that can amount to hundreds of thousands or millions of dollars.
Prenuptial agreements can indicate how to handle various aspects of compensation packages, such as:
- Stock options
- Restricted shares
- Performance bonuses
- Commissions
- Retirement benefits
- Pensions
- Employment perks
- Fringe benefits
- Deferred bonuses
Marital agreements can clarify whether these forms of compensation are shared or not.
Real Estate Holdings
Real estate is a valuable asset in many wealthy individuals’ portfolios, whether a shared residence, a vacation home, a rental property, or commercial real estate.
Prenuptial and postnuptial agreements can state how these properties are to be managed, who will be responsible for paying for related expenses, and how the proceeds will be split if they are sold.
Business Interests
High net worth couples may have various business interests, including startups, partial ownership in businesses, professional practices, franchises, or family businesses.
Prenuptial agreements can clarify how these interests will be affected by the marriage. Many people may include safeguards in their marital agreements to protect their business interests in the event of divorce.
International Assets
High-net-worth individuals may have offshore bank accounts, real estate in other countries, or other international assets. Understanding these foreign legal frameworks and how marriage can affect property rights in other countries is complicated, so you may want to speak to an experienced prenuptial agreement to help protect your assets.
Digital Assets
In today’s modern age, couples may have more digital assets than ever.
These assets can include:
- Intellectual property and digital businesses, such as podcasts, websites, or vlogs
- Online accounts
- Reward accounts
- Cryptocurrency
- Manuscripts
- Lucrative social media accounts
Your agreement can explain how these assets are to be handled in the event of death or divorce.
Complex Valuations
With more complicated asset holdings, it becomes more difficult to accurately value the property. You may need experts to determine the value of deferred stock options, real estate, or business interests. If you have international assets, a careful analysis of currency and exchange rates will be necessary.
Contact the Los Angeles Divorce Lawyers at Berenji & Associates Divorce Lawyers for Help Today
A well-structured prenuptial or postnuptial agreement can help mitigate risk, plan for the unexpected, and provide asset protection. By defining property ownership and liability matters before there is any trouble in the marriage, you can provide clarity on how your assets and income should be treated during the marriage. Shielding your assets from claims in a divorce can help protect what you’ve worked so hard to build.
Berenji & Associates Divorce Lawyers is familiar with the unique challenges that high-net-worth couples face. We understand you want to protect future earnings, safeguard generational wealth, and guard your business interests. We can discuss your legal options during a confidential case review.
Contact us today to get started with one of our Los Angeles divorce attorneys.
For more information, contact our experienced Los Angeles divorce lawyers at Berenji & Associates Divorce Lawyers by calling (310) 271-6290 to schedule a consultation.
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