In the high-stakes world of professional sports, athletes are accustomed to chasing victories and rapid financial success, characterized by multi-million-dollar contracts, significant benefits, and lucrative endorsement deals. Yet, amidst this economic prosperity, an often-overlooked element of personal and financial planning is the prenuptial agreement. Much like a sports contract safeguards an athlete’s career and earnings, a well-drafted prenuptial agreement serves as a strategic playbook for protecting personal and financial interests within and beyond a marriage. While they might seem like a precautionary measure, prenuptial agreements are more than just a legal formality; they are a strategic tool for safeguarding an athlete’s wealth, future earnings, and lifestyle.
Most states have adopted the Uniform Premarital Agreement Act (“UPAA”). By way of example, in Illinois, where the UPAA has been adopted, a “premarital agreement” is defined as an agreement between prospective spouses made in contemplation of marriage and to be effective upon marriage. 750 ILCS 10/2(1). To be enforceable, a premarital agreement must be in writing and signed by both parties. 750 ILCS 10/3. The agreement must also have a complete listing of both parties’ assets and liabilities.
By establishing a clear framework for asset division in the event of a divorce, a prenuptial agreement prevents contentious disputes and ensures that an athlete’s financial stability remains intact. A properly drafted prenuptial agreement should clearly delineate which assets are considered separate property, often referred to as non-marital property, which assets will become part of the marital estate, e.g. marital property, and how those assets will be divided in the event of divorce. This preemptive clarity helps athletes maintain control over pre-existing assets and avoids potential conflicts as it relates to the allocation of assets acquired during the marriage.
Addressing how income is allocated in the event of divorce is often another goal of a prenuptial agreement. Spousal support is routinely litigated in matters where there is a high-income earner such as a professional athlete. A prenuptial agreement can resolve that issue before it ever comes about by determining what income is available for payment of support. In the case of a professional athlete, often the income available is capped in order to avoid a result that is inconsistent with the lifestyle during the marriage. Equally as often, prenuptial agreements will set forth the specific amount of support to be paid to the recipient spouse based on a formula or step-up schedule depending on the length of the marriage.
Because the career of the professional athlete is relatively short, especially in comparison to the general public, it is that much more important to ensure a stable future even after the final whistle. The foresight that a prenuptial agreement affords the athlete is crucial for effective retirement planning and ongoing financial security. Furthermore, the intense pressure of being a professional athlete, coupled with the unpredictability of their careers and finances can exacerbate personal conflicts and lead to relationship breakdowns.
According to Justia Law, approximately 60-80% of professional athletes’ marriages end in divorce.[1] Under the intense scrutiny of a high-profile career, a divorce can rapidly evolve into a media frenzy. A prenuptial agreement can maintain some semblance of privacy by reducing the likelihood of a prolonged public legal battle. Confidentiality clauses or non-disclosure agreements within the prenuptial agreement can also help keep sensitive information private, allowing personal matters to be handled discreetly.
In light of the clear benefits, and the unfortunate likelihood of divorce among professional athletes (60-80%), every athlete should want to secure their future with a prenuptial agreement. And while the decision to enter into a prenuptial agreement is deeply personal, it is not merely about protecting your assets; it is about safeguarding your financial future and fostering open communication with your partner in case of unforeseen circumstances. Having these discussions prior to marriage can lead to a stronger and healthier marriage[2].
In the unpredictable realm of professional sports, where a single game or unexpected injury can dramatically alter the trajectory of an athlete’s career, a prenuptial agreement is not just beneficial but essential. An athlete’s approach to their future outside of sports should warrant the same energy, dedication, and commitment they bring every day to their sport. In this way, they can work to transform some of life’s uncertainties into a well-orchestrated victory. Ultimately, the prenuptial agreement provides the athlete with peace of mind knowing exactly what his or her obligations will be in the future in the event of divorce.
Thomas T. Field, Equity Partner (JD/MBA/CFL)
For more on Mr. Field, please visit:
www.beermannlaw.com/team/thomas-t-field.
[1] “Divorce and Family Law Issues for Professional Athletes,” Justia Law, July 2024.
[2] “How a Prenup Can Be a Roadmap for Marriage,” Psychology Today, September 6, 2023.