As anyone who reads the news tabloids knows: Tiger Woods recently was caught cheating on his wife Elin Woods and she is filing for divorce. The media has really ran with this one…
Tiger Woods had entered into a prenuptial agreement with Elin in which the couple allegedly originally agreed that in the event of divorce Tiger would pay Elin $20 million dollars after 10 years of marriage.
Obviously, Tiger would have lost far more green if he had never entered into a prenup. Elin is allegedly renegotiating the prenuptial agreement so that she will receive $5 million up front and as much as $55 million to stay with him for two more years. Ouch.
Aside from the media spin, which always seems intrusive (and quite frankly, obnoxious), there are a few kernels of wisdom that can be extracted from this painful situation:
- A prenup is a way to control the distribution of your assets in the likely chance of divorce (U.S. divorce rate still over 50%).
- If you don’t want a court dividing your assets according to NY law, a prenup is a very wise idea.
- Prenuptial agreements are not only for multi-millionaires and celebrities. Anyone can enter into one and benefit from its legal protections.