By now, you’ve probably heard Russell Brand and Katy Perry are getting divorced. We’ve all become accustomed to celebrity marriages not lasting. We’ve heard about Ashton Kutcher and Demi Moore splitting and the infamous Kris Humphries and Kim Kardashian 72-day marriage. But what can we learn from these celebrity divorces?
Before tying the knot, talk about the ABC’s – assets, babies and commitment.
1- Assets: Brand and Perry had no prenuptial agreement. What does this mean? Well, Brand and Perry will have to split their earnings 50/50 – meaning Brand may get $20 million from the divorce. Kutcher and Moore, on the other hand, were wise to have a pre-nup.
While some people view prenuptial agreements as “unromantic,” it’s a reality in today’s world. Not having one is a poor financial decision, especially if you have family wealth or own a business. If you’re opposed to a prenuptial agreement or can’t get your future spouse to sign one, then consider a Domestic Asset Protection Trust. If you’re already married, then consider a postnuptial agreement. Click here to read more about these options.
2- Babies: Rumor has it Brand and Perry wanted to build a family but Perry decided to post-pone their decision given her recent career success. Kim and Kris played out this discussion for all to view on the show Kourtney and Kim Take New York, Season 2, Episode 3.
Doesn’t it make sense to discuss this topic BEFORE tying the knot? While it’s impossible to plan life exactly – it is important to start discussing when and if you will build a family. Make it a priority to talk about babies before walking down the aisle. Discuss how many kids you want, where you see your family living, how you will handle careers with a family. Keep in mind, as you move forward in life, you may change your mind about certain decisions. For example, you may decide not to have kids then in your late 30’s change your mind. Life is life, keep your mind and communication open as you grow with your spouse.
3- Commitment: We don’t know what circumstances life will bring but we all place some value on commitment – or why would we even bother to get married? It’s so easy to file for a divorce that sometimes we forget what “commitment” means. According to Merriam-Webster, commitment is an agreement or pledge to do something in the future.
Discuss with your future spouse what you are pledging to each other. Include how you will communicate about finances, in-laws, stepchildren, household chores, religion, holidays and most importantly, disagreements. While it’s difficult to cover every item you and your future spouse will argue about, it’s important to start the conversation and share your feelings about commitment.
Relationships take work – lots of work. By discussing the ABC’s – assets, babies, commitment – before walking down the aisle, starts your relationship off on solid ground. Learn from these celebrity divorces and discuss the ABC’s.
ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA™, CRPC®, is the Founder of Transition Planning & Guidance, LLC. Her firm bridges the gap between financial planning and coaching. As a Transition Consultant, she offers sage advice in all aspects of life – financial, personal and professional. Niv does not manage money and does not sell financial products. Her services include spending plan development, divorce financial review, life strategy and professional progression. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me’.”