The Divorce Firewall: Prenups & Asset Protection
The Divorce Firewall: Prenups & Asset Protection
Love is emotional; marriage is financial. How to insulate pre-marital wealth from the 50% divorce guillotine via a bulletproof Prenup.
Executive Summary
- The Default Contract: If you don’t sign a Prenup, you are automatically signing the state’s default contract (often Community Property or Equitable Distribution), which may split your assets 50/50.
- Separate Property: Assets owned before marriage are generally safe, BUT the appreciation on those assets (e.g., your startup’s growth) can become marital property without a Prenup.
- The “Duress” Defense: To be enforceable, a Prenup must be signed well in advance (ideally 6 months). Signing it on the eve of the wedding is grounds for a judge to void it due to coercion.
The “Commingling” Poison
Never mix marital money with separate property. If you deposit a joint paycheck into your pre-marital investment account, the entire account may be “tainted” and reclassified as marital property. Keep ledgers strictly separate.
Mechanic: The Enforceability Shield
6 Months
Prior to Wedding
Disclosure
Must be 100%
Dual
Legal Counsel
No Kids
Custody Limits
Simulation: Wealth Erosion (Divorce Scenario)
Impact on $20M Pre-Marital Asset Appreciation
| Category | Without Prenup | With Ironclad Prenup |
|---|---|---|
| Pre-Marital Assets | Generally Separate (Risk of mixing) | Permanently Separate |
| Asset Appreciation | Often Marital (Shared) | Remains Separate |
| Alimony (Spousal Support) | Court Decided (Unpredictable) | Pre-Defined / Waived |
“A Prenup is not a plan for divorce. It is an insurance policy for peace of mind, ensuring that marriage remains about love, not leverage.”
Essential Resources
INTERNAL
BMT Playbooks