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Gates.



We can’t tell you how often we’ve been at a party or event and someone is talking about a pending legal matter. At some point during the conversation, someone will often say that the person should work with us; more often than not, we are either already their attorney or we have connected them with their attorney. We cannot confirm or deny whether we work with someone unless they volunteer the information. That said, we will disclose with some reasonable comfort that we are not working with Bill & Melinda Gates on their divorce but we do potentially know something about their situation.

Rumor has it that the Gates’ do not have a Prenuptial Agreement. Knowing nothing about the validity of that statement or the law in the State of Washington, we wonder if they didn’t sign a Prenuptial figuring that it would be deemed unreasonable at the time of divorce anyways. In Massachusetts, Prenuptial Agreements are scrutinized in two steps:

1. Was the Agreement reasonable at the time that it was signed by the parties?
The court will determine if the terms were reasonable at the time that the Agreement was made. If the terms of the Agreement are objectively unfair and without reason, any specific term could be overturned.

2. Are the terms of the Agreement still reasonable and fair at the time of the divorce?
Even if the terms of the Agreement were fair at the time of signing, they may still be objectively unfair at the time of divorce. For instance, if one party had agreed to provide health insurance to the family but the other has been providing it for most of the marriage OR alimony was agreed to by the parties but is no longer needed, it may not be reasonable or fair to uphold a term of the Agreement . To the contrary, one party may have become ill during the marriage and has a greater financial need than expected, making alimony necessary where it was waived prior.

If the State of Washington applies same two step analysis, the Gates’ may have figured that any terms that they signed 20+ years ago may not be reasonable now given the expectation that Microsoft would continue to skyrocket in value.* At the time of the marriage, Bill Gates had approximately ten billion dollars. Imagine that the parties had agreed that Belinda Gates would get four billion dollars at the time of a potential divorce. Was that fair then? Sure. Would that be fair now? Probably not (keeping in mind that four billion dollars is still a LOT of money) because his current estimated net worth is 130 billion dollars. While these numbers are insane to think about for the average person, it is their reality and the same rule would apply to the more typical family also.

As always, please let us know if we can help you in any way.

Warm regards,
John & Faye

* They could have also agreed to terms that accounted for massive growth, whether in dollar value or percentage.

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Planning for Your Marriage.

 

 

What a long century 2020 and early 2021 have been. Since Covid entered our lives approximately a year ago, we have all changed some aspect of our thinking and our behaviors. Some people have become genuinely more compassionate while others struggle with unbearable of levels of anxiety and depression. Many have focused on ordering (and tipping) on take out from local resturants or supporting small, local businesses.  Most of us have missed life events, like graduations, bar mitzvahs and weddings which have been replaced by smaller, more intimate ceremonies which might only allow for remote attendance.

One of the most interesting aspects of smaller weddings is the focus on the marriage, rather than the event; we have often said that doing this would actually decrease the divorce rate, because marriage is about so much more than a gorgeous dress.  We have noticed that more engaged couples seem to be spending their time having real, meaningful conversations about what being married means and establishing a plan for their life together.

Many couples don’t really discuss the real details life and future together before they got married; did you?

A lot of people will answer no to that question. I asked someone yesterday and he responded that they discussed that they both thought important that she stay home and raise their children but that seemed to be the extent of where the conversation ended.

As we have said often and consistently, prenuptial agreements are one of our favorite types of matters to handle. It is fascinating to observe as they navigate cooperation and negotiation, both of which are essential for a successful marriage. Among the topics that we typically challenge them to ponder and discuss:

  • Existing debt, including school loans or mortgages;
  • Credit scores;
  • Trust fund from which they draw income and  what they do with those funds;
  • Allocation of  household expenses;
  • If there will be children, expectation about private verus public schools and if someone will stay home to raise them or use day care;
  • Purchase or leasing of autombiles (ie cash, financing, type, frequency);
  • Future hope of travel (ie the cost of an annual trip weeklong trip to Maine is very different than a month in Europe);
  • Annual income;
  • Annual expenses;
  • Current savings, checking and investments;
  • Theory on investing (ie. Is one a risk taker and the other more conservative?);
  • Theory on saving (ie Does one like to spend and the other likes to save?); and
  • Comparison of health insurance plans regarding the cost availability for the spouse and children.

There are other things to consider as well, including some found in this article:
25 Questions to Ask Before You Get Married (msn.com)

As always, please feel free to contact us if we can assist you in any way.

Warm regards,
John & Faye

 

 

 

 

 

 
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