In an article dated 16 October 2012 Rick Morton discusses the fact that Russell Crowe and Danielle Spencer now recently separated, signed a Pre-nuptial Agreement in 2003. The article was published in the Australian and is called: “Russell Crowe, Danielle Spencer signed a Pre-nuptial Agreement in 2003”.
The article reports that Russell Crowe and Danielle Spencer have now separated and that soon Russell Crowe’s fortune, which is somewhere above $80 million will have to be divided.
The article suggests that the Pre-nuptial Agreement provided for Danielle Spencer receiving at least $15 million if she was to stay in the marriage for three years.
Given that the couple married in 2003 Ms Spencer has satisfied this requirement and should be entitled to the $15 million promised to her under the Agreement, provided that the Agreement was drafted correctly.
The article states that “The couple are said to have parted on good terms, however and are united on at least one front; the desire to keep their children, Charles 8 and Tennyson 6, happy and oblivious to the press”.
In this regard, although they are a “celebrity couple” their desires are similar to any other couple who are separating.
Generally people think of Pre-nuptial Agreements as something for the rich and famous only. However, many people choose to sign a Binding Financial Agreement (or “Pre-nuptial Agreement”) before either living together or getting married.
In reality such Agreements can be signed at any time either pre-living together or getting married or during the marriage or whilst living together.
The reasons for entering into a Binding Financial Agreement may be varied and can include the fact that one or either of the parties has assets that they wish to protect. Also if it is a second marriage and both parties have children from a prior relationship they may wish to enter into a Binding Financial Agreement in order to protect the assets they own so that these may pass to the children of their former relationship.
Whether or not you wish to have a Binding Financial Agreement is a personal choice. Some people would rather not have an Agreement and leave their matter to be decided by the Family Law Act if they do unfortunately separate.
However, having a Binding Financial Agreement allows parties the control to determine what would happen to their assets if they were to separate. In this sense it can actually minimise conflict post separation as both parties are clear on what they are each entitled to and have previously turned their minds to this and formed an agreement in this regard.
If you have any questions about or are interested in having a Binding Financial Agreement drafted, please do not hesitate to contact us at Armstrong Legal on (02) 9261 4555.