One word that is not used often when describing a Nevada wedding engagement is "cautious." However, financial advisors say that if more couples used caution before getting married, there may be fewer people left with depleted bank accounts after a high asset divorce. Divorce is costly, and the financial ramifications can be avoided with good planning.
Prenuptial agreements are not popular topics of conversations with couples planning their futures. However, the cautionary tales of the many celebrities who lost fortunes in divorce settlements reveal how valuable they can be. Mel Gibson's infamous settlement of $425 million plus residual assets holds the spot for the highest Hollywood payout so far.
People with substantial wealth may have many reasons to request a prenuptial agreement, especially in an equal distribution state like Nevada. They may have acquired property or businesses prior to the relationship, or they may wish to protect themselves from any debt their partners have accumulated. However, in lieu of a premarital agreement, if a person suspects his or her marriage is coming to an end, there are other things to do to prepare financially.
Having cash on hand will be important in case one must stay in a hotel or in the event one's debit or credit cards are canceled. It is always recommended to have an emergency fund that will cover the bills for a couple of months. Gathering and organizing documentation of all assets will be crucial. Wise advisors never recommend hiding money or assets because this could result in serious legal trouble
An attorney can offer solid counsel when it comes to prenuptial agreements or preparation for a high asset divorce. When one's net worth is high, so are the stakes. Following the advice of one's lawyer is always recommended.
Source: nhregister.com, "Irreconcilable financial differences", Joseph Matthews, Nov. 19, 2016