Justin Bieber Has At Least These Four (4) Things To Worry About Because He Did Not Get A Prenup
To paraphrase Jessica Simpson in answer to the question what was the worst financial decision she ever made "my first marriage". She did not get a prenuptial agreement. It seems pretty well known that Justin Bieber married Hailey Bladwin but they did not sign a prenuptial agreement before the wedding. Some publications now claim that sources say Mr. Bieber is concerned about this oversight. I can immediately point out four (4) very serious areas of concern for Mr. Bieber but it is too late for him to protect himself. Let's just hope that his concerns are not justified because theirs will be one of the the seemingly very few celebrity marriages based upon undying love that truly lasts for life.
The first concern is income (this is also the basis for the fourth concern). Any and all income that Mr. Bieber earns from the date of the marriage forward is half (50%) Ms Baldwin's. This includes income from his position as a hotel slipper magnate, income from any earnings through his pop star related activities, most passive income on his investments and basically any income from any source whatsoever. What this means in the practical sense is that that Ms. Baldwin is entitled to half (50%) of everything that Mr. Bieber might purchase or earn during the course of the marriage. The exception would be any gifts that he purchases for her, those are hers one hundred (100%) percent.
II. The House of Drew
Second is his clothing line, formally The House of Drew (hereinafter referred to as the slipper business). It appears that Mr. Bieber has been able to parlay his fame into success at developing his own business that creates, promotes and sell clothes, including his famous "hotel slippers". Ms Baldwin will be entitled to fifty (50%) percent of the increase in his slipper business from the date they married until the termination of the marriage (if that unfortunately occurs). If Mr. Bieber wants to maintain in the slipper game, then he would have to buy out her interest in the company, either through financing or giving her a greater share of other assets/cash.
III. Everything He Owns That Might Increase in Value
Third is everything else he owns that may appreciate in value during the marriage. Any accounts, investments, real estate, contracts, art, etc., that increases in value during the marriage will be appraised and Mr Bieber will have to pay Ms Baldwin half (50%) of the increase in value just to keep the stuff he already owned before the marriage. This can create a real problem for celebrities and often results in selling off of homes, cars and memorabilia. He will not have to buy her out of any assets that lose value during the marriage but that loss is not included when calculating the property division. For instance, if his five million ($5,000,000) dollar home in Ontario losses two million ($2,000,000) dollars of value, he does not get a credit of one million ($1,000,000) dollars toward other property/cash to compensate for this loss - he bears one hundred (100%) of the loss. However, if the home in Brentwood, California (allegedly) increases in value by two million ($2,000,000) dollars, he will owe Ms Baldwin, one million ($1,000,000) dollars. Frankly though, either one would be better than the ridiculous amounts he reportedly spends renting homes every month.
Finally there is the dreaded "A" word. The goal of alimony, particularly in California, is to even out disparities in income so that both may continue to enjoy the marital standard of living after the divorce. Income, for purposes of alimony, includes income from any source of any kind. So not only is Ms Baldwin entitled to half (50%) of all of the income he earns and anything he purchases during the marriage as well as any increase in the value of his business, his income from all of the sources listed above will then also be used against him when calculating alimony for Ms. Baldwin.
There are other concerns as well. If you or a family member is considering marriage, it is a good idea to at least consult with a lawyer to discuss the possible financial implications of the impending nuptials. Please contact my assistant Cathy at (248) 608-4123 or contact us through the website to schedule a consultation if you have any questions regarding prenuptial agreements, divorce or separation.
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