• 6 things wealthy people do to protect their money when they get married

    From a425couple@21:1/5 to All on Mon Jun 24 19:23:10 2019
    XPost: alt.economics, alt.politics.economics


    6 things wealthy people do to protect their money when they get married
    Sarah Wells Jun. 21, 2019, 9:09 AM
    Elizabeth Holmes
    Theranos founder Elizabeth Holmes married hotel heir Billy Evans,
    according to recent reports. Kimberly White/Getty Images for

    Their wedding fueled speculation about what will happen to the couple's finances.
    We asked experts how wealthy people can protect their finances after
    they get married.
    Visit Business Insider's homepage for more stories.
    Elizabeth Holmes, the disgraced founder of the biotech startup Theranos, married her fiancé Billy Evans in secret, according to a report earlier
    this week.

    Holmes was once worth billions of dollars before reports revealed she
    had defrauded investors and based her company's blood-testing technology
    on faulty science. She now faces federal trial for several counts of
    wire fraud.

    Following the news of her marriage, speculation has emerged over Holmes' motives, from contriving a pregnancy to garner sympathy in court to
    possibly using her husband's hotel fortune to pay off legal debts.

    Of course, Holmes and Evans are far from the first couple whose
    financial arrangements are called into question following their marriage.

    We asked experts the different ways wealthy people can protect their
    finances and assets after they get married.

    Here's what they had to say.

    Separate your forms of income
    Separate your forms of income
    Flickr / David Goehring
    For high-net-worth couples, an important first step to take when
    protecting individual assets in a marriage is to separate the different
    streams of cash flow they might have, New York divorce lawyer Jacqueline
    Newman said.

    "It's a question of defining what income is," Newman told Business
    Insider. "Especially when you have someone who owns their own business,
    that really can get very, very tricky. A lot of times when you have
    family money … you may be in a situation where you really want to
    protect the money that comes in from the family. Trust income, any kind
    of inheritance, gifts … you just want to make sure that money that is
    from someone's family is able to come out."

    For Evans, as an heir to the California chain Evans Hotels, separating
    his inheritance from any other forms of income could be a good way to
    insure that his family's money isn't on the line when legal dues come

    Start estate planning
    pitbull2013 via Compfight cc
    Another crucial step to take when coming into a high-net-worth marriage
    is to start estate planning, president and CEO of Francis Financial,
    Stacy Francis, told Business Insider in an email.

    "High-net-worth couples should meet with a financial planner and make an
    estate plan immediately to organize their assets and designate where
    they should go in the case of death" Francis told Business Insider.

    Bringing in an estate manager can also be an effective way to wash your
    hands of financial dealings and protect separate money in the case of a divorce, says Newman. If money is separated and never used during the
    marriage by the moneyed partner, it won't be considered joint income.

    Sign a prenup
    An obvious choice when entering a marriage — whether it be financially high-risk or not — is to sign a prenuptial agreement, or prenup. This is
    a legal agreement where both partners agree ahead of time to what
    division of assets they would accept in the case of a divorce.

    While prenups are typically drawn up to protect the moneyed spouse,
    there are instances where the other spouse benefits as well.

    "When drafting a prenup, each party should hire independent attorneys to
    draft and review the document before it is signed to make each party's
    best interests are represented," Francis told Business Insider. "Though
    prenups are typically designed to protect the moneyed spouse,
    stay-at-home parents can also greatly benefit from prenuptial agreements."

    Prepare for spousal support in the case of divorce
    Another topic to consider when entering into a high-net-worth marriage,
    Francis and Newman told Business Insider, is the potential for spousal
    support in the case of an eventual divorce. Unless otherwise specified
    within a prenuptial agreement, the moneyed spouse may be required to
    make payments to their ex-spouse after divorce.

    "If one partner is sacrificing their career, peak earning years, and all associated benefits such as healthcare and retirement plans to raise
    children and run the household, they need to ensure that they will
    receive spousal support for an extended period of time in the case of a divorce," Francis told Business Insider.

    In the case of a severe wealth disparity between the two partners, the
    moneyed partner may also be required to provide spousal support to
    maintain a certain standard of living for their ex — for example, if the
    ex had relied solely on the other's income and would have no means to
    provide for themselves directly after divorce.

    "Without a prenuptial agreement, (a partner) may live a certain
    lifestyle, and there may be spousal support that the non-moneyed spouse
    may receive," Newman said. "But that person probably wouldn't receive
    much in the way of assets because the assets would in fact all be
    separate property."

    Decide the fate of your debt
    Flickr / deveion acker
    Another thing for engaged couples to consider is how debt will be dealt
    with during, and potentially at the end of, a marriage.

    "If debt was acquired during the marriage in a joint account, you must acknowledge who pays for the debt within the divorce settlement,"
    Francis said. "However, the lender goes by the contract, and if the
    assigned spouse does not pay and your name is still on the loan, your
    credit could be impacted."

    Ideally, Francis said, the couple would close all joint accounts and
    refinance remaining loans separately.

    And control the narrative in the public eye
    Associated Press
    In the case of high-net-worth marriages — especially when either person
    is in the public eye — outside factors can have an impact on the
    financial dealings of the marriage. In the case of a divorce, moneyed
    partners can face pressure from scandal that affects support for their
    public persona or company.

    "Controlling the story is going to be a very important thing," Newman
    told Business Insider. "Otherwise you could be in a situation that
    affects the stock prices."

    "And unfortunately there's an element of leverage that exists for, let's
    say, the non-celebrity spouse that says, 'Listen, if you don't do this,
    I'm going to leak XYZ.'"

    An example Newman gives of a high-net-worth marriage ending "well" is
    the recent divorce between Amazon CEO Jeff Bezos and MacKenzie Bezos.

    "(Amazon) didn't take a big hit," Newman said. "There was a lot of
    things at risk there and they really, I think, orchestrated the
    announcement to press and their whole divorce in a very positive way."

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