As is usually the case when a beloved celebrity marriage breaks down, the tabloids are abuzz with headlines about what the divorce means, why the marriage broke down and salacious details of unusual pre-nuptial agreements.
The rumour mill has not spared Nicole Kidman and Keith Urban from running wild with rumours about why the marriage broke down and details of their financial situation.
Although Kidman is an Australian national and the divorce application itself was filed in the Nashville court (a world away from the jurisdiction in England and Wales) the recent news of their divorce raises very relevant questions about long marriages, pre-nuptial agreements and how couples may choose to deal with their private affairs away from the spotlight.
Long marriages
A powerhouse couple, with reports of their relationship first appearing in 2005, Urban and Kidman represented one of Hollywood’s longest marriages, often candidly sharing the trials and tribulations of their marriage and his substance abuse issues with the public.
They both brought their own status and assets into what was a 20-year relationship in total.
So, what do long marriages mean, especially if you are entering into the relationship when you may be established in your own right and how exactly, can you divorce someone after such a long time amicably, without blame?
As always, when a celebrity divorce hits the headlines “irreconcilable differences” are usually sighted as the reason for the divorce. The exact reasons of course, remain unknown to the wider public despite broad speculation. Irreconcilable differences is an American legal term which circumvents the need to apportion blame. Correspondingly in England and Wales, the only ground for divorce is that the marriage has broken down irretrievably. This can protect couples from having to play the blame game once the decision has been made to formally separate.
Last week, Urban was spotted with a new girlfriend. Whilst a new partner’s finances may be considered if you are cohabiting, a new partner who you do not reside with is unlikely to have a significant impact on any financial settlement.
The duration of a marriage often plays a part in how assets may be divided. Although a short marriage is no less of a partnership of equals. Generally, it is accepted by the court that couples ending a marriage lasting over 10 years, including any pre-marital cohabitation, will have more call upon each other than those in a shorter marriage.
Irrespective of any relationship duration, the overriding principle is fairness. The starting point for a marriage of nearly two decades will undoubtedly be an equal division of the marital assets.
Although there may be an agreement that assets should be divided equally, the real issue often lies with who will receive what and a significant amount of protracted legal arguments can take place over the exact division.
Pre-nuptial agreements and separate property
For those more attuned to the legal landscape, there has been recent case law about what exactly constitutes separate property, especially for wealthy individuals and how that can be protected.
It is clear from the reporting on Kidman’s divorce, that as they both entered the relationship with separate wealth and with each spouse earning over $100,000 at the time of the divorce, they will largely keep their own assets, and no alimony or spousal support will be paid to the other. But in circumstances where this may not be the case, how can a person protect their wealth and income?
Whilst pre-nuptial agreements, typically in America are legally binding contracts, the court in this country has a wide discretion to vary those arrangements. Especially, if an unfair disadvantage may be caused to a spouse or a child of the marriage by virtue of that agreement.
A pre-nuptial agreement, whilst somewhat unromantic to consider prior to your big day, should be an essential consideration when you are entering the marriage with your own assets whether inherited or otherwise.
As life moves on, consideration should still be given to varying a pre-nuptial agreement to account for certain changes in circumstances. If you are entering into a marriage with modest assets but later generate or inherit wealth, consideration should be given to entering into a post-nuptial agreement to protect those assets.
Any nuptial agreement must be entered into of your own free will and whilst not essential, legal advice should be taken in relation to the validity of such an agreement.
Whilst the Urban-Kidman pre-nup allegedly included a ‘cocaine clause’, a provision that allegedly provided he would receive $600,000 for every year they were married, if he remained sober, a spouse’s sobriety (or lack of) is unlikely to impact a financial settlement, and the term may be void if the matter proceeded to court. Likewise, a nuptial agreement that essentially prohibits a spouse from doing something, with the consequence being a lack of financial support is very unlikely to be upheld by a court.
Kidman’s divorce focuses on detailed concepts of copyright and businesses. For successful individuals entering into a marriage, it is essential you consider your options as to how to protect your wealth in the event the marriage unfortunately breaks down. If it is your intention to ringfence the endeavours of your hard work, it is important to prepare for this at the earliest possible stage.
Privacy starts with preparation
Kidman and Urban it would appear commenced their proceedings largely with matters already agreed. As noted above, nuptial agreements can greatly assist in the unfortunate circumstances of a relationship break down.
This, however, is not always possible and matters can unfortunately become more contentious than either party may wish for it to be. Traditionally, for high conflict marital breakdowns, a court application would be the only way to resolve the dispute.
In recent years, various non-court dispute resolution options are the favoured method of resolving disputes outside of the court room. The transparency pilot also gave the press more access to private family law proceedings that may have otherwise always been held in private.
Arbitration and Private FDRs are beneficial formats of NCDR, in which indications and decisions can be made to ensure a financial settlement is agreed ‘behind closed doors’. This can also save significant time and costs, for couples seeking a swift resolution.
At McAlister Family Law, we have excellent relationships with Arbitrators and counsel who sit as private FDR judges. We can advise on how to sensitively handle matters, without the added pressure of court.
If you’re considering a nuptial agreement, navigating a separation, or simply want to understand your options we’re here to help. Our award-winning team specialises in resolving matters with care, clarity and expertise, both in and out of court. Please contact us at [email protected].
