Tiger's Tale, Part 2: Tiger's Prenuptial Agreement

Jan 13, 2010 | Filed under: Family Law

             Tiger and Elin executed a pre-nup prior to their marriage.[1] Sources have shared some of the provisions of the pre-nup, [2] but because we don’t have a copy of the agreement, I won’t comment on the specifics.

             North Carolina family law authorizes couples to enter into a pre-nup. Many issues may be addressed in a pre-nup, including equitable distribution of assets and debts and alimony. A pre-nup cannot address child custody and child support.

           If Tiger’s lawyer drafted his pre-nup pursuant to North Carolina law, it would likely set forth a waiver of equitable distribution, define marital property and how it would be distributed upon separation. The pre-nup would likely set forth Tiger’s alimony payment to Elin as well. Given Tiger’s property owned prior to the marriage and his substantial earnings capacity (which seems to be rapidly diminishing, just ask Tag Heuer, [3] Gillette,[4] and Accenture [5]), the pre-nup would likely provide that some or all of Tiger’s income earned during the marriage would remain his separate property, and that any property purchased with this income would remain Tiger’s separate property. I would want to clearly define how separate property becomes marital property. The pre-nup may also include a “vesting schedule” for payment owed to Elin by Tiger. Often couples agree that one spouse will receive a certain sum of money for time married; for example, $100,000 for each year of marriage. Tiger would want to place a limit on how much Elin would receive in the event of a lengthy marriage.

             Under North Carolina law, married couples may amend their pre-nup during the marriage. Reports indicate that Tiger and Elin may have done so after his car crash. [6] Smart move Elin!

            In Part 3 of Tiger’s Tale, some of the issues relative to entry of a judgment of absolute divorce will be discussed.

by Steve Mansbery