Statistically, approximately fifty percent (50%) of all marriages in the United States end in divorce.  Accordingly, planning for divorce, especially for parties with significant assets prior to marriage and/or earning power, has become financially prudent.  Just as you would insure your house from fire, even though fires do not occur in fifty percent (50%) of home purchases, you should insure your finances, both earned and unearned, are protected should you fall into the fifty percent (50%) of American marriages that end in dissolution.  Furthermore, Nevada’s community property and alimony laws make divorce planning through a pre-nuptial agreement even more of a necessity for parties with significant assets and/or earning power.

            Consider the following scenarios:

1. Husband owns a home with a mortgage on the home prior to marriage.  One the day after the date of marriage, the Wife moves in.  The parties do not have a pre-nuptial agreement.  Both Husband and Wife work and earn equal pay.  The Husband’s earnings pay for the mortgage, property taxes, and insurance.  After the date of marriage, the home appreciates $300,000.00.

-           Result of Divorce: The house has both a community property interest and a separate property interest, because Husband’s earnings, which are community property, paid for the mortgage.

1. Wife, who on the date of marriage, has MD from Harvard and is a world famous brain surgeon who works, but does not have any ownership interest, in a very successful medical practice here in Las Vegas.  Wife, after marriage, decides to venture out on her own and starts not just her own medical practice, but also buys a building that she leases via a separate LLC, which she owns 100%, to the medical practice. Both the medical practice and the real estate flourish in value.  Husband and Wife do not have a pre-nuptial agreement.

-           Result of Divorce: Husband has a community property interest both in Wife’s medical practice and in Wife’s building.

1. Husband, after to marriage, charges $50,000.00 on credit cards in his name only for frivolous purchases.  Wife knows about these purchases but assumes that since the credit cards are in Husband’s name, Wife will not be liable for these debts.  Husband and Wife do not have a pre-nuptial agreement.

-           Result of Divorce: Wife is liable for one-half of these credit charges.

1. Prior to marriage, Husband owns his own construction business and makes $200,000.00 month or $2.4 million/year.  During the entire length of the fifteen (15) year marriage, the parties have an extravagant life-style which includes every luxury from first-class travel to 10,000 square foot residences to maids and servants.  Wife does not work one day for an employer during the entire marriage.  Husband and Wife do not have a pre-nuptial agreement.

-           Result of Divorce: Wife will be awarded significant alimony to keep her in the same lifestyle of which she has become accustomed to during the marriage.

As can be seen above, Nevada’s community property and alimony laws make divorce planning essential to all individuals about to marry and especially important for those with significant assets and earning power.  The attorneys at Lin & Associates (702-DIVORCE) are experienced on both sides of these issues: representing individuals in creating an “iron-clad” pre-nuptial agreement and helping parties “break” a pre-nuptial agreement and thus be entitled to more than what was specified in the invalid pre-nuptial agreement.