As a blog that normally focuses on separation and the implications of divorce,
it is nice from time to time to examine happier occasions, such as the
union between two individuals.
This week, George Clooney, actor, human rights activist, and infamous heartbreaker
proposed to his girlfriend, human rights lawyer, Amal Alamuddin, 36.
Clooney, 52, was married once previously to actress Talia Balsam from 1989
until their divorce in 1993. Since that time, however, Clooney has been
in a series of long-term relationships but has never wed.
For a while there, it seemed the female heartthrob would never marry again;
Clooney even went so far as to announce same during an interview in 2007.
Now, however, it seems the actor has changed his mind. And although neither
Alamuddin nor Clooney appear to be too overly consumed with money, it
will be interesting to see how they organize their financial affairs and
whether the duo intends to sign a marriage contract or pre-nuptial agreement.
After all, Clooney’s net worth is estimated to be a hefty $200 million.
Interestingly, there are additional considerations when one marries later
in life. Generally speaking, most people get married sometime in their
20’s or early 30’s. As such, it is unusual for people to have
significant assets as of the date of marriage. Most people make their
fortune during their marriage resulting in an increased net worth on the
date of separation.
However, when people get married later in life, they often will already
have substantial assets as of the date of marriage. Moreover, if they
retire shortly after the wedding, they may even have a lower net worth
on the date of separation. Consequently, someone who gets married in their
late 50s, for example, may end up with negative net family property.
While it is unlikely that Clooney will retire any time soon, or that he
will stop bringing in millions for his films, in less unique circumstances
one might expect someone in Alamuddin’s position to owe an equalization
payment. If, for instance, Clooney had more modest means, and had assets
amounting to $1 million on the date of marriage and then decided to retire
at the age of 60, Alamuddin, who is only 36, would continue to work for
at least 30 years. If the parties separated after 20 years of marriage,
it would not be surprising if Alamuddin’s net family property was
higher because Clooney would be able to deduct his $1 million marriage
date assets. Accordingly, even if Clooney’s net worth was higher than
Alamuddin’s overall, he may still be owed an equalization payment
if Alamuddin made more money during the marriage. Moreover, if Clooney
were not worth as much, Alamuddin could be looking at indefinite
spousal support.
Thus, parties considering marrying later in life should consider entering
into an Agreement that addresses these issues, particularly if there is
a significant age gap between the parties. Often, there are other considerations
for couples entering into their second or third marriages that can also
be addressed by way of contract.