High asset divorce affects many celebrities

13 Aug High asset divorce affects many celebrities

Sadly, divorces are on the rise in the United States. While divorce leading to the end of a marriage can be intrinsically traumatic and potentially acrimonious, divorce may also be hard on the financial front, as well. Financial problems relating to divorces may involve spousal support, child support and property division, among others.

California sees a lot of celebrity divorces. Most celebrities, as a result of their fame and fortune, are especially vulnerable to high-asset divorce lawsuits. Paul McCartney had to shell out a whopping $48.6 million in spousal support when he separated from his wife. Tiger Woods, on the other hand, had to give up $100 million amidst a controversial divorce battle with his now ex-wife. Michael Jordan participated in one of the costliest divorces in history, owing a stunning $150 million in alimony. Harrison Ford’s divorce settlement cost around $85 million.

With the advent of such exorbitant divorce proceedings, many couples resort to prenuptial agreements. While one may hesitate to talk to his or her fiancé about a prenuptial agreement prior to the wedding, practicality may dictate that it is a better idea to prepare for contingencies rather than be blindsided by them later. Prenuptial agreements can be a good idea if there is a substantial disparity in premarital wealth between spouses. Furthermore, if one of the spouses is the sole breadwinner, he or she may have to shell out a lot of money in alimony.

In most cases, the guidance of a professional is recommended. High-asset or high-income divorces can often be rather complex, owing to the vast financial impact on both spouses that can occur after the divorce is finalized. In many cases, prenuptial agreements may be beneficial.

Source: Deseret News, “10 celebrities who lost the budget battle to their spouses,” Herb Scribner, Aug. 1, 2014

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