The cost of infidelity goes beyond broken marriages, as Kobe Bryant, Tiger Woods, and Arnold Schwarzenegger have recently demonstrated. Kobe and Tiger are both expected to fork over $100 million to their spouses as a result of their decisions to live double lives with their girlfriends. These significant blows to their assets, however, could have been avoided with a few simple precautions. First, wealthy clients should be advised to protect their assets while they are still single. A trust well can shield assets that the client has gained prior to marriage. Second, clauses affecting the settlements of assets in the event of infidelity can and should be removed from prenuptial agreements. Finally, outlining the consequences that might result from a client’s infidelity can help him/her resist temptation.
See Scott Martin, Mistresses and Broken Marriages Cost Arnold, Tiger and Kobe Millions: Wealth-Wise tips for Spouses Thinking About Straying From the Nest, The Trust Advisor, Jan. 15, 2012.
