Jessica Simpson was recently quoted as saying that her biggest money mistake was her first marriage to Nick Lachey. She was spot on. In addition to her notoriety as an actress,
she has become a fashion Icon.
In contrast, her ex husband, Nick Lachey, never achieved the same level of fame that she did. Accordingly, when they split up, Jessica wound up paying. Nick Lachey walked away with half of the value Jessica Simpson’s estate when their divorce became final, back in 2006. At that time, the parties settled for about $2 million. Fortunately for Jessica, she made most of her fortune in the fashion industry after the parties split.
Before getting married, carefully weigh the economic consequences. Be very clear about what you may be giving up, before saying “I do.” Under California law, one spouse could be giving up a lot for the other.
There are two solutions to avoid this outcome. The first, and most obvious, would be not to get married.
The second would be to get married, but to make sure to have an air tight prenuptual agreement. A well written prenuptual agreement can avoid harsh laws regarding spousal support and the division of community property.
The problem with a prenuptual agreement is that no one can predict the future. No matter how carefully the agreement is drafted, things inevitably change over the course of a few years, including one’s financial situation. Accordingly, at some future point when the parties split, the agreement may no longer be a true representation of the parties current financial situation. Thus, the agreement may be hard to enforce.