Lessons to Be Learned from Kevin Costner’s Premarital Agreement

LTC Eugene Chu
"Premarital agreements are used for at least three different reasons, only one of which is actually related to divorce. First, a well-drafted premarital agreement can be used prior to marriage to define the character of property or assets (separate or community property states) and the allocation distribution of assets and income in the event of divorce.

Second, they establish the individual or joint responsibility for debts, liabilities, including claims, losses and lawsuits. This type of premarital agreement is intended to provide greater asset protection for one spouse from claims from the other spouse from his or her business, financial or other activities.

Third, a premarital agreement may be used for estate tax planning purposes. Certain tools to minimize estate tax can be utilized only with separate properties from each spouse. An example of that is a spousal lifetime access trust, or SLAT."...