Pop music fans in Dallas and around the world were shocked to hear about the divorce of Katy Perry and Russell Brand. What shocked many legal professionals are the current reports that the pop singer failed to sign a prenuptial agreement.
A prenuptial agreement, also called a premarital agreement is like a business contract between soon-to-be spouses which outlines each spouse’s responsibilities and obligations in the event of a divorce. Although most of us view marriage as a life-long commitment, there are situations which lead to a divorce and it is important to protect the interests of you and your spouse in the event of a divorce or marriage dissolution. Prenuptial agreements are also important in the context of second marriages when there are children from a prior marriage.
High net worth individuals such as Katy Perry should always execute a prenuptial agreement to be prudent. In community property states such as Texas, prenuptial agreements are commonplace among high net worth individuals in order to maintain civility in the marriage and set clear expectations before the marriage begins.
Forbes estimates that Katy Perry made about $45 million during her 14-month marriage to Russell Brand. As one of the world’s most famous pop stars, Perry’s earnings outpaced Brand’s earnings which were around $6 million during the same period.
The couple got married in India and probably have a California marriage license. This means that Brand may be entitled to half of Perry’s earnings during the brief marriage, which may result in a $22.5 million payout.
Source: MSNBC, “Who walks away richer from Perry-Brand split? ” Leslie Gornstein, Jan. 4, 2011