Learn From Her Mistakes: It’s Too Late for J Lo to Create a Prenuptial Agreement, But it May Not be Too Late for You!

Understanding the Importance of Prenuptial Agreements for Financial Security

Jennifer Lopez and Ben Affleck (more affectionately known as “Bennifer”) have made headlines again, this time for filing for divorce after just two years of marriage. Despite their high-profile lives and busy careers, this was a couple that the world wanted to succeed since the early 2000s. However, this split should serve as a reminder of the importance of prenuptial agreements – especially when it comes to marriage and our finances.

The pair reportedly did not have a prenuptial agreement in place, which means that under California law, any assets that they have acquired during their marriage will be split between them, including their $68,000,000 mansion, and any income earned during the past two years. As of this year, Lopez’s net worth was estimated to be $400 million, substantial compared to Affleck’s $150 million. Although J Lo’s divorce petition listed the couple’s assets as “unknown,” it is clear that this will be a huge amount to be addressed by the courts.

However, this uncertainty could have been avoided if the pair had recognized the importance of prenuptial agreements and utilized proactive estate planning, such as executing a prenuptial agreement. A prenup is a legally binding contract that couples sign prior to getting married, outlining how a couple’s assets, debts, and other financial matters will be handled in the event of death or if they divorce. Through this document, Bennifer could have outlined their assets, and agreed upon how they wanted everything to be divided should they divorce.

Why the Importance of Prenuptial Agreements Goes Beyond Wealth

This protection is especially important for people like J Lo, who is responsible for about 70% of the couple’s net worth; not only a successful singer and actress, but also a businesswoman. Going forward, she is expecting to make even more money as she continues to take on roles and grow her assets and investments. A prenup would have provided protection to her future income in a way that the court may not.

lthough J Lo is an excellent example of the importance of prenuptial agreements, it is a common misconception that only the wealthy should create these agreements. In fact, this is a very useful tool for anyone who is getting married regardless of their income or assets. Nobody can predict the future, so why not prepare for a worst-case scenario where you will still be financially protected?

One key reason why everyone, regardless of income, should have a prenup is the clarification of future financial responsibilities. Future financial responsibilities often consist of spousal support, which is especially common in instances where one spouse plans to be a stay-at-home parent. Another crucial reason is asset protection and identifying their separate property. This often consists of things such as income and properties, and is often one of the biggest focuses when creating prenuptial agreements, and outlining the division of these in advance can be very helpful.

Steps to Take When Discussing a Prenup with Your Partner

Similarly, debts can be allocated in a prenup. If you marry someone who subsequently takes on student loans or other personal debt, in many states this will become your debt too upon your split (more on this here). It can be helpful to include this in a prenuptial agreement if you want to avoid potentially having to pay for your partner’s debts after your divorce.

Divorces are stressful and litigation can be expensive, oftentimes resulting in an outcome that is unpredictable and neither party is pleased with. There are a lot of factors that go into a court’s decision when they divide assets, which are elaborated upon in our previous blog post (read it here!). By having a prenuptial agreement, you can eliminate many issues in the divorce proceedings, thereby saving money and simplifying the process, while retaining some control over this otherwise uncertain process. This again highlights the importance of prenuptial agreements.

How a Prenup Can Protect Your Financial Future

Some individuals find it difficult to propose creating a prenuptial agreement, fearing that it will give their partner the impression that they are not serious about them. For advice on how to approach this topic, check out our previous blog post here.

Also, important to mention is that since March of 2023, married individuals in Ohio can execute a postnuptial agreement. This contract is very similar to a prenuptial agreement except it is signed AFTER the parties marry. To read more about postnuptial agreements in Ohio, please click here.

Do You Need to Discuss the Importance of Prenuptial Agreements or Postnuptial Agreements? Schedule An Appointment:

We are experienced in drafting prenuptial agreements and know the correct way to prepare postnuptial agreements under the new Ohio law allowing them. Please see our new Postnuptial Agreements help page by clicking here. To learn more about these contracts, you can find more blogs by searching in the search bar above.

Or, please contact us at Holzfaster, Cecil, McKnight & Mues at 937 293-2141 to schedule an appointment for an initial consultation which can be conducted either by phone, Zoom, or in person.

PUBLISHER’S NOTE:

I want to thank Krista Gliszczynski, a third-year student at the University Of Dayton School Of Law, for writing and contributing this article. Krista is clerking with Holzfaster, Cecil, McKnight & Mues this semester. You will be reading more from her in the weeks to come! Well done Krista!

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