Royal Wedding: Should Prince Harry and Meghan Markle Get a Prenup?

By Christine Powers Leatherberry Britain’s Prince Harry and actress-philanthropist Meghan Markle are scheduled to wed May 19, 2018. Prince Harry’s net worth is estimated at $40 million, while Markle’s net worth is speculated to be around $5 million. MarketWatch also reports that she will not return to her role in the popular TV series “Suits,” and she shut down her lifestyle website “The Tig” last spring. By all accounts, Markle is all in when it comes to joining the Royal Family. She even deleted all of her social media accounts recently. However, the question remains, will the couple sign a premarital agreement before they walk down the aisle? Neither his father, Prince Charles, nor his brother, Prince William, signed prenups prior to getting married. Quitting your job for marriage or have considerable wealth in your family? Consider a prenup Premarital agreements can provide a number of benefits for both monied and non-monied parties. They can allow wealthy individuals to protect their assets, provide peace of mind for the lesser-monied party and potentially help couples avoid a litigious divorce. Since Markle has given up her career and income received through acting and endorsements, a prenup could provide financial resources to ease her back into life as a commoner should the couple split. For Prince Harry, a premarital agreement could protect his assets and those he is likely to inherit from his family – grandparents, Queen Elizabeth II and Prince Philip, and father, Prince Charles. Five things Prince Harry and Meghan Markle should consider including in their premarital agreement While laws pertaining to marriage, divorce and premarital agreements differ in the United Kingdom, many of the laws overseas are similar to those in the United States. Following are five things typically recommended for wealthy couples wanting a premarital agreement based on laws in Texas: No. 1: Keep individual property separate. Frequently referred to as a “roommate” prenup, this type of premarital agreement follows a “what’s mine is mine, and what’s yours is yours” philosophy. Many wealthy individuals want to ensure NO community property is created during the marriage. Instead, Prince Harry could agree to cover monthly living expenses and give Markle an allowance and other concessions, while requiring that she give up any community property rights. No. 2: Include a signing bonus. Some people view premarital agreements as a sign of distrust and may be reluctant to sign. To encourage the lesser-monied party to agree to a prenup, the wealthy party may offer a set dollar amount – or “signing bonus” – to be paid to the other party upon the signing of the agreement. No. 3: Address other financial considerations. Spelling out how much money the non-monied spouse will have at his or her disposal following the wedding is a good way to set expectations. Agreeing on specific budgets and clarifying potential payouts to be offered in the event of a divorce may also help couples avoid friction over money later on. Typical line items include: During the marriage: Monthly spending budget for miscellaneous expenses Shopping/clothing allowance Car/travel/entertainment allowance Upon divorce or death: Alimony or “exit bonus” based on duration of marriage should the couple divorce (may include cash, residence, jewels and other assets) Provisions for treatment of any retirement plans or employee benefits (in Prince Harry’s case, this may include benefits pertaining to his military service) Homestead rights – who will live in the couple’s home (or homes) after death, if the residence was separate property No. 4: Establish guidelines for disbursement of wills and trusts. Since Prince Harry is a member of a long-established family dynasty – the...

read more

Have Questions About Alimony in Texas? 11 Things You Need to Know

How alimony is determined varies from state to state. If you and your spouse are calling it quits in Texas, alimony isn’t a given. You also shouldn’t expect a windfall, even if your spouse is a professional athlete, real estate mogul or oil baron. Dallas Divorce Attorney Abby Gregory answers 11 common questions about spousal support in Texas below. 1. What is the standard alimony allowance in Texas? According to Abby, “The maximum alimony – or spousal maintenance as it is referred to in Texas – the court will order is $5,000 per month or 20 percent of the spouse’s average monthly gross income, whichever is less. So even in divorce cases where one of the spouses earns a sizeable income, that is the most you can expect. In addition, you must be married a minimum of 10 years in order to qualify for spousal maintenance in Texas.” 2. Really? I have friends who receive more alimony than that. “Your friends likely negotiated contractual alimony into their divorce agreements. With a contractual alimony agreement, the sky is the limit and payment amounts can be much higher than the statutory maximum in Texas. Contractual alimony may also be of longer duration and can include a variety of other mechanisms based on the settlement agreed to between the soon to be ex-spouses. “For example, the amount may change after each year or be cut in half after three years. It depends on the terms negotiated. Also, you can’t modify contractual alimony, though you may be able to modify court-ordered spousal maintenance under certain circumstances (see question No. 8),” Abby says. 3. How long can I expect to receive spousal maintenance following a divorce in Texas? According to Abby, this decision is up to the court to decide. As she explains, “The court has complete discretion regarding the duration of spousal maintenance, but there are caps. According to the statute, the court may not order maintenance that remains in effect more than five years if the couple has been married 10 years, seven years if married for 20 years and 10 years if married for 30 years or more.” 4. How easy is it to qualify for spousal maintenance in Texas? It’s probably more difficult to qualify than you think. “Spousal maintenance in Texas was designed to support the woman in her 70s who hasn’t worked her whole life or a stay-at-home mom who aspires to do more and just needs her rent and car payment paid while she executes her plan to transition into the workforce. “If you’re seeking spousal maintenance in a Texas divorce, you have to prove to the court that you are unable to meet your minimum reasonable needs post divorce. The statute does NOT allow an award of maintenance sufficient to meet your current standard of living. Generally, those minimum reasonable needs include a roof over your head, a car, gas in your car and food on your table. It does not mean a private school for the kids, eating out at your favorite restaurants or taking annual summer vacations,” Abby says. It’s important to note that it really is an uphill battle to get spousal maintenance in Texas, and the state expects you to find a job eventually. According to Abby, “Where people often make a mistake is admitting during a deposition ‘I’m not trying to find a job’ or saying ‘I don’t know’ when the judge asks what plans they have following the divorce. Those are not good answers. The court will not take pity on you, because they won’t believe you can’t meet your...

read more