From: www.mirror.co.uk

Let’s start with the basics, shall we?

Prenuptial Agreement: A contract entered into prior to marriage or a civil union, which includes provisions for division of property or spousal support in the event of divorce.

Although presenting your future spouse with a prenup may make it seem as though you are already predicting a failed marriage, there are legitimate reasons why some people should really consider signing a prenup.  For instance, it’s safe to say that most celebrities (and other wealthy individuals) have prenuptial agreements (except maybe Kobe Bryant).  By doing so, this saves the celebs from potential ”gold diggers” (you know, those who marry for money, not love).  Another reason is if you are born into a wealthy family and your parents demand that you protect the family inheiritance.  Or, in true Britney Spears fashion, you might decide to marry someone on a whim (in Vegas), but regret that decision 24 hours later.

In addition, a prenup can include different clauses – including a sunset clause (which states a date when the agreement expires) and an infidelity clause (which forces the cheating spouse to pay up).  Adding these clauses might seem like an insult to your future spouse, but everyone is entitled to look out for their own best interest.  Whatever your motive might be, prenuptial agreements might not always be looked on as a ‘bad’ thing.

What if a couple’s situation changes over the course of a marriage?  No problem!  A couple has the ability to revise the  agreement and it will still be considered a valid contract.

Renup: A revised prenuptial agreement.  (Maybe this term hasn’t made it into Webster’s yet, but it’s a genius term.)

Who knew this was possible?  In fact, when preparing prenuptial agreements, the agreement itself can be written in manner where it will be very flexible and “can provide for rights and responsibilities to change during the marriage”. Perhaps this refers to the possibility of one person becoming much wealthier during the marriage due to their successful business and/or career.

This information about prenups and renups is always an interesting topic – but more likely so in light of  Tiger Woods’ recent car accident and all the drama that has emerged thusfar.  When Tiger married his wife, Elin, in 2004, she signed a prenuptial agreement worth $20M if the coupled remained married for 10 years.  However, after learning about Tiger’s extramarital escapades, it is reported that Elin has demanded that the prenup be revised for a shorter marriage term (7 years) and bigger payout ($75M).  Not to mention reports that Elin would receive $5M upfront, if she agrees to stay with Tiger.  Pretty major revisions to the original agreement, indeed. Good news for Elin that the prenup will still be considered valid.

In what instances, then, are prenuptial agreements considered invalid?  Let’s discuss a few of the top reasons:

• You were pressured – The agreement will not be valid if a person was pressured by their future spouse and/or lawyer to sign the agreement.
• No time for consideration – The bride and/or groom must be given time to read over the agreement/ask questions before signing it.
• False information – Full disclosure regarding each person’s assets and liabilities must be properly reported.
• Unconscionably - “…if the agreement is so grossly unfair that one party would face severe financial hardship while the other prospered, the court is unlikely to enforce it.”

As none of these reasons appear to apply to Tiger or Elin, the ‘renup’ might prove to be beneficial to both of them.  For Tiger, he will still have his beautiful wife by his side (for a couple more years) and have the ability to mend any strained relationships with his corporate sponsors.  For Elin, however, her gain might strictly be monetary.   Will the prospect of  a bigger payout be enough for Elin to stay by Tiger’s side?  Emotional wounds live on forever, you know.  Guess we’ll just have to wait and see…

Posted by Melanie on December 11, 2009 at 10:00 am.