In previous posts on this blog, we have discussed the importance of having a prenuptial agreement in many different situations. For example, if you and your partner have significant or significantly different assets, if you are a high-profile couple and want to protect your privacy, or if you want to establish property division rules, a prenuptial agreement can be essential.
This appears to be the decision that Mariah Carey and Nick Cannon made before they got married in 2008. At the time they were getting married, both of them were in the public eye, successful in the entertainment industry and had significant assets. Additionally, Carey reportedly had much more money than Cannon. Had the couple not have taken the precaution of completing a prenuptial agreement, their recent divorce may have been much worse.
According to sources, the couple’s prenuptial agreement protects their assets and their privacy. There is evidently a clause in the agreement that assigns financial penalties for publicly disclosing information about a breakup, should there be one.
Should either of them violate this part of the agreement, the consequences will be harsh. Cannon would have to pay $250,000 to Carey if he discloses information about their divorce and Carey would have to pay $500,000 to Cannon if she is the one who discusses the divorce.
These types of confidentiality clauses have become more common in prenuptial agreements, especially when one or both spouses have a public image, career and reputation that could be jeopardized by the disclosure of unflattering or damaging information. They can also make it easier for people to file for divorce and navigate the process with the peace of mind of knowing their situation will be kept private. In California the court divorce file is open for public view. By limiting what is put into the court file helps maintain a couple’s privacy.
People who are considering their options for a prenuptial agreement may want to discuss their situation with an attorney who understands how to create an effective and enforceable document that achieves their goals.
Source: Philly.com, “Mariah Carey and Nick Cannon signed a prenup – report,” Jan. 17, 2015