This as-told-to essay is based on a conversation with Kristina Royce, 51, a divorce attorney from Los Angeles. It's been edited for length and clarity.
I've been a matrimonial lawyer for 23 years, representing high-net-worth individuals, including celebrities and entrepreneurs, who are navigating marriage or divorce.
A big mistake my clients make when entering marriage is ignoring the business aspects of their relationship because they want to focus on being madly in love. However, marriage is a business transaction with the potential for huge financial consequences, so it needs to be treated as such.
The divorce process can be complicated for high-net-worth individuals because their compensation structure and assets typically require a deep analysis. I help my clients navigate this process as smoothly as possible during the divorce, but their most impactful divorce decisions were made before they even got married.
Before marriage: create financial intimacy
I believe a successful marriage requires three types of intimacy: sexual, emotional, and financial. Financial intimacy, which I view as having uncomfortable conversations about finances and money, is often neglected.
Even though it's difficult, partners must be transparent about how much money they make, what they can afford and are willing to pay for, and how they'll each contribute financially to the marriage.
It's also important to discuss how you expect to handle hypothetical scenarios such as having children, quitting work, relocating, or even divorce.
I've seen it all too often that a spouse gives up their job to be a stay-at-home parent while their partner becomes the breadwinner. When they get divorced years later, the unemployed spouse has to rely on potentially minimal spousal support while being left to mend a gaping career gap that took place during a critical period of professional development.
Discussing how you'll handle hypothetical scenarios can help you know what you're getting into and plan accordingly.
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"Divorce Attorney for Rich and Famous Shares Biggest Mistakes to Avoid," as told by Tess Martinelli was published in Business Insider on November 8, 2024.
