Learning from the Bezos Divorce – Do’s and Don’ts
Jeff and MacKenzie Bezos’ very public split after 25 years offers us some important lessons about managing the divorce process. Though few can compare with their wealth (Bezos is, after all, the richest man in the world) most couples have something to learn from what they did right—and what they didn’t do right.
Do’s
As a divorce attorney here in Doylestown, I have devoted a significant amount of my practice to mediation and I applaud the Bezoses’ decision of peace and privacy.
DO work things out in private. This protects your family and your reputations. By the time the Bezoses made a public statement that they were divorcing, it seemed they had come to an amicable agreement about their future and worked out any animosity that might have existed. Had the Bezoses ended up in divorce court, the skeletons in their closets would have become a part of public record.
DO get a divorce lawyer, especially if assets are significant or complicated. Even if the divorce is amicable, divorce lawyers know many details about the law that couples do not, and they can help you navigate to the best outcome for you and your family. Hire the lawyer early in the process so everything is handled correctly from the start.
DO know your shareholder agreements if you own a public company or own significant shares in one. Does the shareholder agreement allow transfer of shares? Does it allow repurchase by the company on favorable terms? There’s much speculation about how the settlement of Amazon stock will end up, but you can bet their lawyers know every word of those agreements and will work out a settlement that will benefit both parties and keep the value of Amazon stock stable.
Don’ts
DON’T file in a state with unfavorable divorce laws, if you have an option. Couples who own houses in several states or who live at least part of the time in another state can try filing in the state with the most favorable tax laws for the filer. It might become an issue if the other spouse tries to file in another state, but usually, whichever is filed first prevails unless evidence can support another state as the more appropriate. The Bezoses live in Washington, a community property state, which means assets get split down the middle. That may be considered favorable for MacKenzie, but not for Jeff.
DON’T neglect to get a prenuptial agreement or to create a postnuptial agreement. The Bezoses married several years before Jeff founded Amazon. They weren’t particularly wealthy and lived in a one-room flat while Jeff worked on his project. They never bothered with a pre- or postnup, and now there are many questions about how to split the assets.
A prenuptial agreement sounds unromantic at a time when romantic emotions are running high, but marriage is about living life in the real world, which includes managing money. And since money is one of the most common causes of marital fights, having a clear understanding of how each partner views money and its use is a very important conversation that engaged couples should have. And for high asset couples especially, a prenup can help each partner know what assets he or she is responsible for managing, clearly defining expectations.
Happily married couples should take the time to understand their assets and consider a postnuptial agreement to protect their children and their own futures. Divorcing couples should try to divide assets and work through other issues as amicably as possible in order to protect their children and their own futures. Discussing these matters with an experienced divorce lawyer will help you both make decisions that will safeguard your assets and your family’s best interests.