Your no bullsh$t guide to divorce with experienced attorneys from New Direction Family Law and guests and professionals who have been there. Unfiltered discussions to help you move from victim to victorious and from bitter to better.
Elizabeth A. Stephenson: [00:00:00] Yeah. But I, I mean, I have a, I had a prenup. I have a prenup. Yeah. And my, you know, and I think it's, it's very important when you're older and you have children or you have grandchildren.
Mm-hmm. I think it 'cause it, then it preserves your estate, you know? Right. You can still take care [00:00:15] of your, your new spouse, but it does protect them also. That
Sarah J. Hink: is huge. That is know the second marriage. I have kids already, I wanna make sure they inherit any property. Right. Right. Mm-hmm. And make sure that that is protected.
And that's something I definitely recommend for anyone that's getting married and have children
Elizabeth A. Stephenson: and doing a second [00:00:30] time around. I think that's absolutely, I've
Sarah J. Hink: only had one. Prenup case where it got too heated and the marriage didn't happen.
Elizabeth A. Stephenson: Well, and that was part of it. In hindsight, that's probably good.
Yeah.
Sarah J. Hink: Yeah. So it wasn't my fault. Absolutely not. I'm sure it wasn't your fault.
Elizabeth A. Stephenson: [00:00:45] [00:01:00] Hello
Sarah J. Hink: everyone. It's Elizabeth Stevenson. Thanks for joining us. I'm Sarah Hink here as well.
The lawyers and the partners of New Direction Family Law. We have Cam with us again, marketing business development manager, and Joe in the [00:01:15] corner back there. Sometimes he says something, sometimes he doesn't. Sometimes he doesn't. Sometimes he looks like a nuts. I was trying to see, I was
Joe Woolworth: trying to see if my mic was on.
I might have something to say today.
Sarah J. Hink: Feel free, we shoulda have an episode where Joe, just ask us questions. That's [00:01:30] a great idea and I love that. I love that. Yeah. That's not today though. Questions by Joe. Any questions by Joe for the divorce attorneys? I like that. What's our topic today? Ms. Inc brings romance and real talk is the title.
Okay. Prenups. Okay, [00:01:45] so this is when things are good.
Elizabeth A. Stephenson: Yeah. Happy. Yeah. Right at the beginning when everybody's happy and ready to get married. Yeah. You've got your ring right on your to-do list for the wedding. You've got your venue. Mm-hmm. And then. I [00:02:00] love you honey, but I've been thinking, yep, we need a prenup.
Prenup. We need a prenup and that my parents really want
Sarah J. Hink: us to have a prenup.
Elizabeth A. Stephenson: A lot of times it does come from the parents. It does, it does.
Sarah J. Hink: I agree. Especially if their parents have been divorced once or twice in the past, speaking
Cam: from experience, [00:02:15]
Sarah J. Hink: which is great advice. I think so. You know, that'd be a good wedding present for someone is to like buy someone's.
Prenup pay. Did you remember we
Elizabeth A. Stephenson: wanted to go to these wedding shows and set up a booth and do prenups. I think that'd be a great idea.
Sarah J. Hink: Yeah. And people are like, oh, that's a joy kill. [00:02:30]
Elizabeth A. Stephenson: Why do people need, people hate? I mean, people have this idea about prenups and if I get one, it means they're gonna get divorced and you don't really love me.
Sarah J. Hink: Right. And that's a, you know, you get car insurance 'cause you might get an accident, but you don't think about it. You don't want an accident. [00:02:45] Exactly. No one wants a car accident. Yeah. But, um, the biggest misconception is we don't have anything, or we don't, we aren't rich, so we don't need a prenup.
Cam: Yeah.
That people think it's for like the super wealthy or like celebrities or something. We'll, tell the Bezos that.
Sarah J. Hink: Yeah.
Elizabeth A. Stephenson: You know, right. When they got married, they were in a garage and then, you [00:03:00] know, at the end of the day, things change. Mm-hmm.
Sarah J. Hink: So that's true. Things can change. And also something to think about is some, the worst divorces I deal with is when people are fighting over debt.
True. True. So, um, you can. Put that in the prenup though. [00:03:15] Like their debt's, their debt and your debt's. Yours, so he has his credit card. Well, doesn't work
Elizabeth A. Stephenson: like that anyway. If you have a charge card and you charge something that I don't know about, why am I, why am I responsible for that? Well,
Sarah J. Hink: it's for the marital household.
If you're married, [00:03:30] there's a know about it. Yeah. Go out and buy a Louis Vuitton. That's gonna go. So we're each gonna split that debt if we separate, most likely. If it's something you should have known about, you know, like you're living in the same household, your wife likes to go shopping something [00:03:45] that's the standard you know, that y'all, y'all have together.
How get there? So how does a prenup take care of that? Well, it sets out, a lot of times I advise they do, you know, title control. So if that credit card's just in. Husband's name then, and he goes out and, you know, spins, lavishly at [00:04:00] whatever, watches, whatever he's into. Mm-hmm. Then that debt on that credit card is his, and instead of having to split the debt 50 50, it's his separate debt for, to, into the, you know, prenuptial agreement.
Right, right, right. So that's one thing to, to think about and. Also during this conversation, when you're [00:04:15] speaking to an attorney about how that works, you're like, you know, something should go off in your head is, I don't even know what kind of spender he is. I don't know if he has credit card debt.
Elizabeth A. Stephenson: That's a great, that's true.
That's absolutely true. Yeah. I think you should have, you know, we always have premarital counseling or whatever. Mm-hmm. But people don't like [00:04:30] talking about. Money. No at all. You know, just like it's taboo for us for some reason, but can
Sarah J. Hink: you imagine like getting married and then like six months later finding out that this person has like $50,000 in credit card debt?
I have. And
Elizabeth A. Stephenson: people will come to me and say that and say, and I paid it, you know, and we paid it [00:04:45] off during the marriage. Mm-hmm. So, you know, that's a love. It was beautiful looking back on that. I probably shouldn't have done that, but I mean, you know, you are in love and you go, mm-hmm. Okay, well let's work.
We're a team. We're gonna work together. Married our money. My money is your money. Money. Yeah. Well, you know, they'll [00:05:00] saying, what is it? Your money? Is your money? Our money? And my money's mine Essentially works.
Sarah J. Hink: Yeah. And, you know, work hard, pay off their student debt and then their medical school and Right.
And then like, you know. It
Elizabeth A. Stephenson: doesn't last long, and then they go and have an affair with their nurse and leave you and have another [00:05:15] baby. Mm-hmm. Shit really happens. That's some shit happens.
Cam: Lemme tell you, I mean, you make a good point though, because I think, I don't think it's that uncommon for people to discuss like, okay, financially, once we get married, how's this gonna work?
Are we gonna share a bank [00:05:30] account? Mm-hmm. Are we gonna like Well, no, I agree with that, in that part of the planning. So why wouldn't it be taboo to discuss the debt? Part of it. Yeah. Because you, I
Elizabeth A. Stephenson: mean, I think a lot of times if you have a lot of debt, people may feel a lot of shame around that.
Cam: Mm-hmm.
That's true. Yeah.
Elizabeth A. Stephenson: One the [00:05:45] easiest way is, alright, let's each run our credit report, right? And let's, let's see what's out there and just sit down around the cr table and a glass of wine and let's talk about it. Right?
Sarah J. Hink: So when I do the prenups for people, I have them both list all their, their liabilities and assets.
So that's out in the open. Everyone can disclose [00:06:00] it. So if they haven't discussed it at that point, they're gonna talk about it then. Then, um, so that's one thing to consider is just that. Life does change. Mm-hmm. But also to protect you from being more poor than you were when you got married. You know?
That's true. That's a good point. Yeah. Let's keep it moving in a [00:06:15] positive direction. Correct. And anticipates, there's language in there about anticipating businesses. So maybe you don't own a business during the marriage or before you get married, but then you start one during the marriage. That's pretty huge.
So that's my business. Yeah. Right. As long as you put [00:06:30] your, your title, I mean, if everyone's in the business and you're 50 50 owners, well, you guys made a decision to make 50 50 ownership, so. But even,
Elizabeth A. Stephenson: but if, but if you went, if you had to go to court
Sarah J. Hink: mm-hmm.
Elizabeth A. Stephenson: If, if you own the business a hundred per, well, a hundred [00:06:45] percent.
I'm still entitled to 50% of it
Sarah J. Hink: without a prenup. Yes. Correct. That's what I'm saying. If you have a prenup that addresses that, addresses you know, title, right. And business. And if you own it, then that's your business, then you're gonna be a covered, right? But
Elizabeth A. Stephenson: otherwise, you're gonna lose half your business, right?
You're gonna lose half your retirement, [00:07:00] you're gonna lose half the equity in a house that you maybe put a hundred thousand dollars down on for a down payment, right? Mm-hmm. So those are all things. To consider. No, you're not being mean. You're not, you know? Mm-hmm. It doesn't mean you don't love the other person.
You're just being sort of smart about it. Yeah.
Sarah J. Hink: And it can always
Elizabeth A. Stephenson: change. [00:07:15] Doesn't contract, everything can change. It might not, you
Sarah J. Hink: might not break up. You might stay together forever. Forever. It doesn't matter. Right,
Elizabeth A. Stephenson: right. Yeah. [00:07:30] [00:07:45] [00:08:00] [00:08:15] what can you put in a prenup? We talked about property. What else?
Sarah J. Hink: We can put alimony.
So waiver of alimony or, you know, some people are quick to be like, just waive alimony and then I'll, I'll usually say, well, you can. If you're going down that road, think about if you have really young [00:08:30] children, right? Like sometimes we can put in there that if you have children that are not yet in elementary school mm-hmm.
And you are entitled, entitled to it to it. So you can, you can get really crafty with the elementary section, right? And you put certain things in there about, you know what, if this happens and [00:08:45] then that would happen. You can leave it all together and just say. Let the
Elizabeth A. Stephenson: courts fail. Deal with it. We'll deal with that if that
Sarah J. Hink: comes down the road or you just do the waiver, especially if both people are seemingly e equal footing at that time.
Elizabeth A. Stephenson: Well, what if somebody comes to you and I mean, we're, we're a week out now, now, and I'm really in love with this guy, [00:09:00] you know, and you tell me you're, you do not. You should not sign this. And they say, well, if I don't sign it, he won't marry me, that they sign it. Nothing we can do. I mean, that's it. Yeah.
Their choice. It's not a little red flaggy. Like [00:09:15] not a few. I mean, you think about it, about him when you're in love and you're right in there. I mean, you know, they'll come back to see us in a few years, I'm sure. But yeah,
Sarah J. Hink: like I'm seeing his red flags. Yeah. Yeah. And you know, that's a scenario I haven't been in luckily.
So I don't know. I'd probably be [00:09:30] very adamant that this person slowed down and Right. You know, read it and ask me questions and. You know, why am I telling them not to sign it? It must be something that's really against them and not reciprocal. I don't know.
Elizabeth A. Stephenson: Right. But at the end of the day, [00:09:45] you know, we're not the boss.
Mm-hmm. The, the client's, the boss, and they get to make that decision. Our job is just to tell 'em best, worst. Yeah. Here's what, here's my, what my advice is. Yeah.
Sarah J. Hink: I think, and you know, it's not the absolute end of the day. So if you've been married for two years and you [00:10:00] signed a pre-up and things are gonna change, like you.
Have decided that you are gonna, you know, stop pursuing your career and you are gonna stay home with the children, but oh shit, I've made that waiver in the prenup. Right. Come back to an attorneys attorney. You can have that amended. You can have that a change as long as everyone [00:10:15] signed. Yeah. You can always thought it was final.
Yeah. No
Elizabeth A. Stephenson: contract and like even separation agreement, both parties agree to modify it and reduce it back to writing. Mm-hmm. You can always modify stuff. And that which is different than a court order. You don't have any control over that. But that's what's so good about Yeah. Agreements is you [00:10:30] control what goes in there.
Sarah J. Hink: Yeah. Well, so when things start to change and you remember that prenup says something that maybe is not gonna be as beneficial to you anymore. Right. Talk to an attorney, get that changed. Right.
Elizabeth A. Stephenson: And see what you could do about that. Can you put stuff about kids in there? Children? No. I mean
Sarah J. Hink: you could, but it's not gonna hold up [00:10:45] called court.
It doesn't mean anything. Child support. No. So think about it like. When the court gives an order for custody, it's based on the best interest of the child at that time. So it doesn't matter what you guys talked about in your prenup, you know, 10 years ago, this is the best interest of [00:11:00] the kid today. So the court gonna not gonna care what you guys put in that prenup about custody.
Right? And pretty much the same for child support, right? You know, it's always not viable and changed. You need to financially support your children, so, right?
Elizabeth A. Stephenson: Mm-hmm. And a lot, you know, there's sometimes I've seen 'em put in here and you probably [00:11:15] have too, that this, this thing's gonna be null and void If you guys screw around on me.
You owe me or if I find out that you do, you owe me a lot of money for that. Sure.
Sarah J. Hink: Yeah. So you, you know, you can put things in there. It can't be against public policy. Nope. What does that mean
Cam: against public policy? [00:11:30] No,
Sarah J. Hink: they have to like keep their weight below a certain amount. Like things are just like extreme, extreme kind of thing.
Or like, you need to make sure you keep your, my like heroin supply coming to me. Like that would be great. Are do crazy
Elizabeth A. Stephenson: things. I've seen, I haven't done this, but we have to have [00:11:45] sex three times a week or something like Oh wow. Like that. Mm-hmm. You know, so I mean, you can sign it, but then if you challenge it, you can do that.
Okay. Right, right. But it's always modifiable. Mm-hmm. And. So think about that. And so if you [00:12:00] sign this and I'm, we separate, am I screwed? I, I'm stuck with that, right? I can't go to the court and ask them to divide the property 50 50
Sarah J. Hink: if it's a valid prenuptial agreement. I mean, you can go file in [00:12:15] court. The other side's gonna waive that prenup in the errand, say Judge
Elizabeth A. Stephenson: Uhuh.
So what can I do? Are there defenses to it?
Sarah J. Hink: The defenses would be, you know, something against public policy in IT policy, um, that there was some sort of involuntary signing, so maybe they [00:12:30] were coerced into signing it. Um, does that the example that you gave count, like, marry me or kind of It depends on, well,
Elizabeth A. Stephenson: I think we gotta think about free will about that.
I think it's more of you got to the venue, your dress, and somebody walks in there and says this. Mm-hmm.
Cam: [00:12:45] Yeah.
Elizabeth A. Stephenson: I mean that, that free in moment kind of duress like Right. It is. You feel like, I, I have to sign this. Yeah. And that's, and it's a high, that's a pretty high bar. It too. I think it's, mm-hmm. And
Sarah J. Hink: so it is considered as the timing of everyone being presented with a prenuptial agreement [00:13:00] and Right.
I think that that was mentioned in that case law we read earlier, even though it didn't go much into the facts, but that does matter. And for some reason people do really like to wait to close to the, the wedding date to reach out to an attorney. It just seems to happen. A lot of times
Elizabeth A. Stephenson: [00:13:15] they're, because, because the other side, the one that wants it, is they're getting married, they're in love, they don't wanna screw it.
They're afraid of, they're scared, gonna talk about it. They, they're afraid that they're, that the other person's gonna call it off or, or something. Yeah. But I, I mean, I have a, I had a prenup. I have a prenup. Yeah. And [00:13:30] my, you know, and I think it's, it's very important when you're older and you have children or you have grandchildren.
Mm-hmm. I think it 'cause it, then it preserves your estate, you know? Right. You can still take care of your, your new spouse, but it does protect them also. That
Sarah J. Hink: is huge. That is know the second [00:13:45] marriage. I have kids already, I wanna make sure they inherit any property. Right. Right. Mm-hmm. And make sure that that is protected.
And that's something I definitely recommend for anyone that's getting married and have children
Elizabeth A. Stephenson: and doing a second time around. I think that's absolutely, I've
Sarah J. Hink: only had one. Prenup case where it got too heated and the [00:14:00] marriage didn't happen.
Elizabeth A. Stephenson: Well, and that was part of it. In hindsight, that's probably good.
Yeah.
Sarah J. Hink: Yeah. So it wasn't my fault. Absolutely not. I'm sure it wasn't your fault.
Joe Woolworth: What's the strangest thing you've ever been asked to put into a prenup?
Elizabeth A. Stephenson: I, I mean, I [00:14:15] haven't had anything in weird stuff, strange or weird that, I mean, I've read, I'm like having sex a, a certain amount, keeping your weight down.
You have to fix me dinner three times a week. I mean, if you don't. That is not a red flag to somebody to go, I know how controlling are you? You know that I was, I was
Joe Woolworth: just reading in the New York Post, I think the, [00:14:30] maybe there's, this is the famous example that you guys are talking about, but basically keeping the weight down.
It was in the prenup. Every 10 pounds the wife gained, she lost 10 grand a month, so she started at 70 and if she every 10 pounds. And this was in the prenup. She started at
Cam: [00:14:45] 70 pounds or 70 grand. Grand. I said she started
Joe Woolworth: at 70 grand a month. Okay. And they prefer every 10 pounds in this prenup from this lawyer in New York who put his name on it.
He was like, yeah, James Sexton. Yeah. We did this one. This was us. And he said, I did it. Cried. And it was gross. That's [00:15:00] what he said It did. It was. And it was gross.
Elizabeth A. Stephenson: Well, it ought to be reciprocal is all I gotta say.
Cam: Right, exactly. Why do men age so gracefully? I don't know. I haven't
Sarah J. Hink: had anything crazy like that.
Elizabeth A. Stephenson: No. I mean, I was a pretty, I just, I just got finished doing a postnup, which is [00:15:15] sort of the same thing. Mm-hmm. You can do the same sort of contract after you're married. Mm-hmm. So you've acquired all this marital property, bought a house together, kids retirement and all of that. And then you want to, and you're not contemplating separating you just for some, I don't [00:15:30] know why, but a lot of people do it and then separate for businesses.
Yeah. Separate that. Oh, yeah.
Cam: That makes sense. And um, one of, you might've mentioned this earlier, but um, like inherited. Right. Family property you all of a sudden have that you weren't expecting or [00:15:45] something like that. Yeah.
Sarah J. Hink: I mean, inheritance is gonna be your separate property until you start to like commingle or it's given, but people still fight
Elizabeth A. Stephenson: over
Sarah J. Hink: it too.
People do.
Elizabeth A. Stephenson: You know, and then that just quits the commiss commission. It's like, Nope, it's
Sarah J. Hink: mine. Yeah, let's just sign off on it. You're taking one thing off the table to fight about. Right. But a lot of times with businesses that are [00:16:00] growing during the marriage, or if you're. Partial owner of a business.
Mm-hmm. And there might be requirements to have a postnup that postnup. Right. 'cause what the business doesn't wanna happen, say you have a business with, you know, five people in it, they don't want their business to go [00:16:15] down because, you know, one fifth of it is being, you know, argued about in court and like they put a freeze on like certain parts of the business and like all these things are happening, that can happen.
That's such a good
Cam: point. Mm-hmm. I didn't think about like. It being a requirement in order to enter [00:16:30] into a partnership or, you know, part of business or whatever that, or like, they
Sarah J. Hink: just lose their, you know, equity in it. Just immediately they're like, okay, bye bye. We're selling your part and Yeah, you're out of
Elizabeth A. Stephenson: here.
Yeah. Because it can really frustrate a business. Yeah. Because you think about how many people are in business, I mean, [00:16:45] there's a lot of entrepreneur content creators, all, I mean, there's a lot of people who work for themselves or who start a side hustle or do something like that, and that's, even though it's yours, it's all marital property, unless you put some, um, provisions around it.
Sarah J. Hink: Yeah. So any business owners listening [00:17:00] there. Yeah, come see
Elizabeth A. Stephenson: us. We can help. Yeah,
Sarah J. Hink: we can
Elizabeth A. Stephenson: help you. We can definitely help you. What else? Anything else we haven't talked about that people need to know about? How would you. How do you generally do prenups? You know, I'll usually say if there's not an attorney on the other side, I sort of say, you know, [00:17:15] tell me about your, what's gonna be the best way for this person to receive it?
Sarah J. Hink: Yeah.
Elizabeth A. Stephenson: Do you wanna go and give it to 'em? Or I can send it to 'em with a very nice email or something like
Sarah J. Hink: that. I usually tell, you know, leave that up to my client. Yeah, exactly. That conversation this morning with fine. I was like, well, you want me to like do it or you can just do it. She was like, I'll just [00:17:30] do it.
I'm like, okay. Okay. That's fine. Yeah.
Elizabeth A. Stephenson: So can, okay, so I've done it. Five days out and now it's like, oh fuck, I shouldn't have done that. Am I screwed? Well, we haven't got married yet. Well, let's say we did. You know, it's coming. I'm [00:17:45] thinking about it. I really don't want to, can I undo it if everyone agrees to, but if they don't, but if I don't get married and I've signed it.
If you don't
Sarah J. Hink: get married and it doesn't mean anything. Right. Right. Because it's based on the fact that you [00:18:00] get married. It's like conditional, right? Like once you get married, this is the agreement. Agreement, yes. Right. Well, what makes me think is like, why wouldn't they be happy with it? What did it say?
Elizabeth A. Stephenson: Because he gets every, because he is a multimillionaire and he met you and you have nothing and you loved [00:18:15] him so much that you said, okay, you keep yours and I'll keep mine. Mm-hmm. But I don't have anything. Well. Do you still
Sarah J. Hink: love? Do you still love him? I dunno. Well, I don't know, like that's really complicated, right?
I know, right? So I dunno. That's gonna be a [00:18:30] personal decision. Yes it is. And but you know, thinking down the line, if she like waved alimony, but they had five kids and didn't work. There's a chance that the court might say, well, this is, you know, extreme. Yes. If he really is a [00:18:45] billionaire, this is an extreme situation.
Mm-hmm. And there are times where the court will be like, okay, well this is violating public policy in the, in the, the respect that this person has zero money. Right. Um, and I think also. I think if they go on, um, if they go on government, go government assistance, [00:19:00] then you have a, yeah, you can go and, and seek something if they qualify for government assistance.
'cause the government's in at that way. We're not gonna fund this like, no, no to, to hell with your prenup. You pay for this. We're not doing that. Do with that.
Joe Woolworth: Yeah. But you guys this point, that's why you should have that [00:19:15] conversation when you still like each other, right? Like if you have it before you get married and you're the billionaire, then you can make a decision based on your good feelings about that person.
Like, yeah, I think you should be entitled to some of the money. Mm-hmm. Yeah. And it's not gonna be so dang contentious, but Yeah. And you
Elizabeth A. Stephenson: sort of wonder why are you asking me [00:19:30] to waive it? Yeah. You know, if you want me to, you had a conversation, I want you to stay home. We're gonna have kids right away. I don't want you to work.
You don't have to. You know, like that would make me sort of wonder.
Sarah J. Hink: Yeah. But, but you know, we've experienced a lot [00:19:45] professionally and I, I think about these people, they were a little jaded sometimes. They weren't thinking about that down the road. And it's hard to, you know, think about what that looks like, hard it, and that this person would ever hurt you and, and wanna keep you at home, the kids, just because that makes life easier for them.
I agree. Um,
Elizabeth A. Stephenson: but if you live in [00:20:00] Texas now, they're, you're not gonna get alimony anyway. Yeah.
Sarah J. Hink: Hmm.
Elizabeth A. Stephenson: Good luck down there, y'all.
Sarah J. Hink: Oof. Yeah, so I mean, prenups, it's, it's, it's a personal decision for sure. It's a good opportunity to at least [00:20:15] have a conversation about finances. I know like when my best friends, you know, what's presented with a prenup and she had me review it and I said, looks pretty.
You know, it was New York. I can't really give, you know, legal advice in New York, but it looks like it. Just like Regurgitates New York law, which is what, you know, [00:20:30] North Carolina, a lot of my prenups just regurgitate North Carolina law and they don't wanna keep it separate. They want it to be marital.
Right. They just want it to be simplified. So there's less to fight about in the future, which is perfectly fine too. But you still set to date. I don't wanna do, I'm not not gonna sign that really [00:20:45]
Elizabeth A. Stephenson: well, you know, so.
Sarah J. Hink: Ain't that some shit? It's per, ain't that some shit y'all?