Wednesday, December 9, 2009

Tiger Woods - Prenuptial Agreement

Everything is negotiable. Even prenuptial agreements.

This week, Investment News reported that Tiger Woods wife, Elin Nordegren, was renegotiating her multi-million dollar prenuptial agreement. According to published reports, the current arrangement requires the couple to be married for at least 10 years before Ms. Nordegren could collect $20 million.

The updated version appears to have a $5 million immediate payment. And, there could be an additional $55 million added to the overall agreement.

Perhaps I'm a little naive. I understand the benefits of prenuptial agreements for estate planning purposes. However, a young, vibrant, couple shouldn't be addressing financial matters as it pertains to their marriage. There are bigger issues to address.

Yes, I understand individuals of this magnitude have to protect their brand name and earnings potential. The brand name has already been tarnished, so perhaps just the future earnings from golf events are at stake.

Renegotiating terms of a marriage is a bad omen. Their two children may be the glue that makes them stay together - if possible. If there weren't children involved, I'd venture a guess this marriage would be over. Tiger would move on and do his thing. And, as reported by the New York Daily News, Elin would probably retreat to her recently purchased estate in Sweden.

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