Amazon founder Jeff Bezos and former journalist Lauren Sánchez are set to tie the knot in an extravagant multiday wedding in Venice this weekend, drawing attention from media, celebrities, and protesters. Months of planning by wedding organizers and legal teams have gone into creating a solid prenuptial agreement for the couple, considering their complex financial situations.
Both Bezos and Sánchez have previous marriages and divorces behind them, with Bezos notably lacking a prenup in his first marriage to MacKenzie Scott, resulting in a substantial transfer of Amazon shares to her in their divorce. Sánchez, who had a prenup with ex-husband Patrick Whitesell, also brings significant wealth into the relationship. It is speculated that Bezos and Sánchez have engaged teams of lawyers, accountants, and advisors to craft a comprehensive prenuptial agreement to safeguard their assets.
The couple’s considerable financial portfolios, including Amazon shares, investments, multiple properties, and various assets, add layers of complexity to the prenup negotiations. As Bezos and Sánchez have children from previous relationships, nonfinancial provisions in the prenup are likely to address privacy, media activity, and confidentiality agreements concerning the couple’s personal and business matters.
Experts emphasize the importance of transparency and clear communication in drafting prenuptial agreements, especially for high-net-worth individuals like Bezos and Sánchez. Ensuring privacy, managing confidentiality, and outlining restrictions on media involvement are crucial aspects to consider in such agreements. Ultimately, the prenup is seen not only as a legal document but also as a strategic “business transaction” for the couple as they enter into marriage.
While some wealthy individuals may attempt to conceal assets using secret trusts or entities, it is essential for parties considering a prenuptial agreement to disclose all relevant financial information openly and honestly. Transparency and meticulous planning are key to creating a prenup that addresses the unique financial circumstances and expectations of both partners.
It is unlikely that someone of Bezos’s wealth level would withhold information when creating a prenuptial agreement. Both Bezos and his partner, Sánchez, would disclose all assets, businesses, properties, and more to ensure the agreement’s validity in case of a divorce. Not disclosing assets could lead to the agreement being contested in court, according to Chinitz. For the ultra-wealthy, creating a prenup involves a team of professionals such as lawyers, accountants, and tax experts to review each party’s assets thoroughly. Transparency and understanding are crucial to ensure the prenup stands in court in case of separation.
Sánchez, with her own money and previous divorce experience, is likely well-versed in this process and has an advantage over someone unfamiliar with financial matters. Prenups of the ultra-wealthy often include provisions to deter challenges in case of divorce, with severe consequences for contesting the agreement. The agreement must be fair and reasonable, ensuring that neither party is left destitute in the event of a divorce.
Typically, a title-based agreement is drafted, where assets in each party’s name remain their own while marital assets are jointly owned. Additionally, property settlement agreements are common, where the less wealthy spouse waives future claims in exchange for a fixed sum. Sunset clauses may also be included, specifying when certain clauses or the entire agreement expires, such as after a certain number of years or events like the birth of a child.
Overall, the prenuptial agreement between Bezos and Sánchez would likely be thorough, fair, and protective of both parties’ interests.
As they are in their fifties and sixties and already have children, it is anticipated that in the event of a divorce, Sánchez will likely receive a significant amount of money, although not as much as his first wife, MacKenzie, did. The reason being that MacKenzie contributed to the creation of those assets, which Sánchez had amassed long before meeting or marrying Lauren Sánchez.
Living in various locations such as South Florida, Beverly Hills, Hawaii, and New York, and frequently traveling on the superyacht Koru, Bezos and Sánchez should ensure that their prenuptial agreement is portable. This means that regardless of where they may reside or potentially divorce, the terms of the agreement will be upheld under the jurisdiction where it was signed. Should they move to another country, a similar agreement would be drafted by local counsel to mirror the original terms.
Beyond financial matters, the prenup may also encompass provisions for gifts, philanthropy, and other legacy-building activities. Bezos should have his legal team review all future monetary transactions to ensure compliance with the prenup terms, as well as with any philanthropic endeavors and long-term family planning.
In the unfortunate event of one spouse passing away while the marriage is still intact, a complex structure of trusts and assets is expected to ensure that Bezos’s and Sánchez’s children are provided for. A significant trust may be set up for the surviving spouse, with provisions for annual financial support and eventual distribution to designated beneficiaries, which could include a foundation or the children.
The surviving spouse would inherit marital assets such as homes and investments, with additional funds possibly provided for liquidity. Stipulations may also be made for the surviving spouse to remain in the home until their passing, after which the property would transfer to the children or another specified beneficiary.
Despite not being legally obligated to do so, Bezos is known for his generosity and is expected to provide for Sánchez’s children as well if the marriage remains happy. With a blended family of seven kids, it is likely that provisions will be made for all children’s futures.
This article was originally published on Fortune.com.
