High profile, high asset divorces are often complex. The reason that such divorces take so much time and resources is the complex asset division. Dividing assets is never easy. From negotiating who gets what to deciding the best means of disposition, the process can be arduous. One way to avoid this is to enter into a prenuptial agreement. To understand why a prenuptial is a good idea in certain instances consider the recent divorce case of oil baron Harold Hamm.
Minnesota readers may recall reading a previous article on this blog about Harold Hamm and his divorce from his long time wife Sue Ann Hamm. The divorce received significant attention because of the size of Harold Hamm's estate, estimated to be worth at least $11 billion. The other reason the divorce received so much attention were the reports that the couple never signed a prenuptial agreement. The couple was married for 25 years.
In the absence of a prenuptial agreement the divorce between Harold and Sue Ann could take on unusual financial complexity, costing both parties' significant time and even more money. Much of Harold's wealth, for example, is locked up in his oil company, Continental Resources. According to court documents, Harold already turned over 50,000 pages of corporate information for purposes of valuing his business assets.
While the Hamm divorce is one example of why a prenuptial agreement is so important, such agreements are becoming increasingly popular with couples with more modest financial holdings. The reason is that a prenuptial can save everyone time and money, no matter how large or small the estate. If for no other reason, it creates certainty and spells out many of the matters that otherwise get negotiated at the end.
Source: NBC News, "No prenup could cost oil baron billions in divorce," June 14, 2013
