Famous music manager Scooter Braun has finalized his divorce from philanthropist and businesswoman Yael Cohen. According to their divorce settlement, the couple’s finances have been divided according to their original prenuptial agreement. This contract allowed the couple to divide their nine-figure combined net worth with minimal stress, potentially saving them years of legal battles in the process.
According to the divorce decree, Braun will pay Cohen $20 million as part of their split. Despite how large that number may seem, it’s just one element of a much larger settlement. Here’s what you can learn from how Braun and Cohen managed their finances and divorce with their prenuptial agreement and how you can ensure your own contract can stand up to legal scrutiny.
The Impact of Their Prenuptial Agreement
Braun and Cohen have been married since 2014 and share three children. Before they wed, they drafted a prenuptial agreement to keep their already significant financial assets organized in case of a future split. When the couple chose to end things in 2021, this agreement allowed them to take care of the demands of divorce while keeping things amicable for their children.
According to the couple’s divorce decree, assets are being split according to their prenup, with almost no deviations. Among other things, Braun will be receiving a $65 million home in Brentwood, the couple’s $40 million private jet, more than 100 pieces of art by artists like Andy Warhol, a Porsche, a Tesla, and an undisclosed sum in investments and financial accounts.
In exchange, Cohen will be keeping a separate $30 million Brentwood home, additional artwork, a Land Rover, and her own collection of bank accounts. She will also receive a $20 million equalization payment from Braun to offset the property he is keeping. The couple does not have a spousal support order in place.
The couple is sharing joint custody of their children. Child support, which cannot be determined by a prenup, has been awarded to Cohen. Braun will be paying her $60,000 per month to support their kids.
Signing the prenup is one of the best things Braun and Cohen could have done for their finances. Other famous couples without prenups often face years-long divorces as they struggle to divide their community property. For example, Arnold Schwarzenegger and Maria Shriver’s divorce lasted for over a decade due to ongoing disputes about asset division.
However, with the prenup in place, Braun and Cohen’s divorce was finalized just over 14 months after they first filed. There were apparently few disputes regarding their assets because they were already addressed in their premarital contract. The matter may have been resolved even sooner, but Braun’s career as a music manager required an unusual discovery confidentiality stipulation and order to protect “trade secrets, competitively sensitive technical, marketing, financial, sales, or other confidential business information” regarding his clients.
How to Ensure Your Prenuptial Agreement Holds Up
If you want to ensure your assets are as well protected as Scooter Braun’s, you need to confirm your prenuptial agreement is legally binding. Like all contracts, prenups need to meet specific criteria to hold up in court. Here’s what you can do to develop a prenup that will stand up to legal scrutiny.
Get Independent Legal Counsel
Both spouses must understand what they’re signing and agree to the terms for a prenup to be considered valid. One of the best ways to ensure you meet this standard is to hire independent prenuptial agreement attorneys for both you and your partner before developing your contract.
If you and your spouse have independent legal counsel, there is no risk of a conflict of interest. Your attorney will explain your rights under the law and how the contract alters them. Both of you will have an advocate who is entirely on your side, so there’s no doubt that you understand what you’re signing.
Provide Complete and Accurate Financial Disclosures
Another requirement for valid prenuptial agreements is honesty. If your spouse hides assets or debts from you when developing a prenup, you do not understand what you’re actually agreeing to. You may refuse or consent to take on these hidden finances without knowing they exist.
Comprehensive financial disclosures prevent this. Before you begin writing your contract, you will exchange a thorough list of your financial assets and obligations with your partner. Your attorney will help you collect all the relevant information to ensure that you provide an accurate account of your finances.
Keep Your Agreement Equitable
Prenups cannot be “unconscionable,” or excessively lopsided or unfair. Suppose your prenup would leave you or your partner without the means to support themselves or involve giving up a significant share of your actual assets. In that case, it may be considered unconscionable and invalid if it’s presented in court.
Keep fairness in mind when you develop your agreement. You wouldn’t be marrying your partner if you didn’t care for them. Protecting your assets shouldn’t come at their expense. If you make fairness a priority, you’re more likely to develop a satisfying and enforceable contract.
Receive Help With Your High-Asset Prenup
Scooter Braun’s divorce settlement is an excellent example of the importance of prenuptial agreements. The couple’s contract held up in court, keeping their divorce significantly more straightforward than other celebrity splits. It also protected their assets while together, helping the couple manage their significant joint net worth without complications.
You can see similar benefits from your own prenuptial agreement. If you’re engaged, you and your fiancé can collaborate with independent legal counsel to develop a premarital contract that satisfies both of you. The expert prenuptial agreement attorneys at Kaspar & Lugay, LLP, can help. Call or send a message online to schedule your consultation today.