Today’s blog post leads off with a rendering of one individual’s multi-divorce history. Its nutshell presentation (taken loosely from a recent Kiplinger article) is fictional, but some readers can likely relate from a real-world perspective.
The scenario can be quickly traced.
Its bottom line: The sketched individual (man or woman; take your pick) is a wealthy business person who has been divorced multiple times. Both experiences delivered a stark financial hit. Love has now struck once again, and marriage is imminent.
And with it comes this question: How can substantial and already existing assets be safeguarded in the event that marital bliss once again evaporates and the divorce process takes center stage?
A prenup can be good, but a trust might be even better
Prenuptial agreements have become progressively perceived as positive legal instruments by legions of marrying couples in recent years.
But not by everybody, as noted in the above Kiplinger piece. As that article stresses, a prenup generally requires marrying parties “to disclose the assets they own and are planning to bring to the marriage.”
Some individuals aren’t keen to do that, especially if money-linked issues loomed especially large and reaped discord in one or more prior unions. They would rather avoid casting a broad spotlight on every wealth source and its coupled valuation.
Is there a way to do that?
Indeed, there is, and Kiplinger prominently highlights it. A divorcing person with a personal history like that described above might reasonably want to consult with experienced family law attorneys well versed in estate planning and administration.
Candid conversation with a proven and empathetic legal team might reveal trust creation as an optimal strategy in some instances for a party heading into a marriage who seeks to protect already accumulated wealth. Moreover, a trust can often ideally secure privacy controls much desired by individuals seeking to protect assets.
We will have more to say about that in our next blog post.