While divorces in general can be traumatic, in cases of high asset divorces the additional financial pressure that comes along with the situation brings its own set of problems. California, with its plethora of celebrities, arguably witnesses more high-profile divorces than anywhere else in the United States.
After over three decades of marriage, rock-and-roll legend Neil Young recently separated from his wife, Pegi, also a noted musician, with three albums to her credit. Pegi has been credited as the muse for many of Young’s songs in the past. The couple met when Pegi was a waitress and later became Young’s backup singer. The couple was also noted for their charity initiations. The couple share massive wealth between the two of them and their young son who has cerebral palsy.
With many costs incurred during the divorce process, many couples have started going for prenuptial agreements. Many find it a difficult discussion to have with their fiancés prior to marriage. However, with the rise in divorce rates in the recent past, it may be a practical solution to safeguard assets, especially in cases where one spouse has amassed a lot of wealth. Furthermore, if one of the spouses is the sole breadwinner, he or she may be obligated to pay the ex-spouse a lot of money as alimony.
In most cases, consulting a professional may be recommended. Due to its vast economic impact on both spouses, high income or high asset divorces can often be rather complex once the divorce is finalized. With that in mind, in many cases prenuptial agreements established at the beginning of a marriage may be beneficial.
Source: LATimes.com, “Neil Young, wife Pegi divorcing; she was inspiration for many songs“, Randy Lewis, Aug. 27, 2014