Dr. Dre, the famous musician and co-founder of the headphone brand Beats by Dre, has recently finalized his divorce from his former wife of 24 years, Nicole Young. According to recent reports, Dre will have to pay Young the eye-watering sum of $100 million as part of the divorce settlement.
Why so much? Because over the past 24 years, Dre’s career took off, leading the couple to build a net worth of more than $1 billion at one point. Compared to his current net worth of $800 million, Young is only receiving a fraction of that value due to a well-written prenuptial agreement.
That prenuptial agreement saved Dre an estimated $300 million due to California’s laws on dividing marital assets equally between partners. Here are a few tips you can take away from this case to protect your own net worth in your marriage.
Always Have a Prenuptial Agreement
The biggest thing that saved Dre’s fortune was the prenuptial agreement he and his wife signed before marriage. The deal, which is not public, was heavily contested by Young last year during the most contentious part of their divorce. However, it held up, and he could use it to retain the majority of the wealth his businesses have led him to accrue.
If you’re already married without a prenup, you can institute a postnuptial agreement instead. These contracts are an increasingly common way for people to safeguard their assets if they’re concerned about a potential future divorce. They act similarly to a prenuptial agreement but can be signed any time during a marriage as long as both people consent.
Know Your Priorities
Whether you’re considering a pre- or postnuptial agreement, you need to know what matters most to you. Dre prioritized his seven real estate properties, certain vehicles, and master recordings and trademarks. He used the prenup contract to ensure that he kept these items during the division of assets.
You can do the same by ensuring that the assets you care about are specifically named in your contracts. This guarantees there’s no doubt who should take ownership of those assets in case of a divorce or separation.
Prepare to Negotiate
Finally, be prepared to negotiate with your partner. Even the most thorough contract may not include everything you’ve gained since you married. Dre couldn’t know he’d found a famous headphones company that Apple would buy when the contract was signed. However, negotiation with Young allowed him to retain his Apple stock despite it not being named in the original agreement. By preparing for talks and knowing your priorities, you can divide your assets in a way that makes everyone happy.
Set Yourself Up for Success with Better Prenuptial Agreements
Dr. Dre couldn’t have known the success he would see when he first got married. Everyone can become more successful than they anticipated, especially over the course of a long marriage. If you want to avoid the kind of massive loss Dr. Dre nearly faced, you should approach your marriage with the future in mind.
The fastest way to do that is to work with a qualified prenuptial agreement lawyer. They can help you write a contract that makes both you and your spouse happy and stands up to future changes. Get in touch today to learn more about how the right lawyer can help you.