Making the Case for Facebook’s Zuckerberg to “Like” a Prenuptial Agreement

If protecting his newly found Facebook wealth was his only concern, Mr. Zuckerberg may have been able to protect a large portion of it without a pre-nup, thanks to the timing of the Facebook IPO.  Still, as CEO of Facebook, Mr. Zuckerberg will have substantial earnings, which will likely include further stock options in the company.  Depending on when those options are granted and later exercised, without a pre-nup identifying any future options as his non-marital property they might be considered marital property, subject to division, just as his post-marriage salary earned during his time at Facebook will be.  A pre-nup also could have protected those assets and more.

A pre-nup can set property rights during the marriage, set support/maintenance rights after a marriage, and provide clarity to both parties as to what to expect in the event of a divorce.  Such clarity can help to avoid an acrimonious and expensive divorce process.  For a man that values being able to lead a relatively low-profile life, certainly there is value in avoiding a potentially high-profile divorce.

Potentially most important, though, is to recognize that pre-nups are not only for the wealthier spouse.  A well negotiated pre-nup might also greatly benefit Dr. Chan as well, insuring a fair settlement to her in the event of divorce, both in terms of property and support.  The clarity that such an agreement would provide, as well as the benefit of avoiding protracted litigation, would clearly be desirable to both parties.  Of course, it is important to remember that pre-nups may address only financial issues between the parties and cannot address child related issues such as custody and child support.

All in all, it is always fun to speculate and wonder about these things (well, at least to some family law attorneys).  And as some commentators have pointed out, it is easier to get by on half of $20 billion (Mr. Zuckerberg’s estimated worth, which changes with each passing day), than it is to get by on half of $20,000.  The value of a pre-nup is in more than just protecting that half.  It is about providing clarity to both parties, and in the unfortunate event of divorce, avoiding protracted litigation.  So whether you are worth $20,000, $20 billion, or somewhere in between, if marriage is in your future, the consideration of a pre-nup should be as well.