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When a billionaire reportedly pays the largest divorce settlement in history in the dissolution of his second marriage, his third marriage will include a prenuptial agreement signed by the new spouse. Rupert Murdoch made sure that Wendi Deng Murdoch signed a prenuptial 14 years ago when they married. That’s why this divorce remains ‘amicable’ and with a minimum of adversarial venom. Whether in Michigan or elsewhere, a prenuptial agreement is a pre-marriage contract that states who owns each asset and defines the terms of property division should a breakup occur later.
Recently, Wendi Murdoch hired a new lawyer. His entry into the case is consistent with an orderly, behind-the-scenes resolution in a low-key manner. At this point, with her hands tied to the wording of the prenuptial and post-nuptial agreements she signed, she may be more focused on assurances of security for the two young daughters that she and Murdoch produced in the marriage.
The two children hold about a one-sixth share in the Murdoch family trust that owns and manages the News Corp., Murdoch’s conglomerate operating vessel. Their interest, though consisting of non-voting shares, is nonetheless worth billions of dollars. A dispute arose between Murdoch and Deng when he announced that the girls would have non-voting shares with no say in the business. For that reason, she may want assurances in the divorce settlement that those shares will not be diluted or manipulated into a de-valued position.
In Michigan and all other states, the prenuptial agreement would govern property division and is enforceable as any other legal, binding contract. According to the terms of the prenuptial and other agreements, she figures to walk away with about $20 million despite Murdoch’s net worth in excess of $11 billion. However, despite the agreement the parties also own various real estate properties which may be outside of the prenuptial. One of these is the New York condo, which in itself is worth $90 million, and will be presumably split between them as marital property not covered by agreement. She may end up with considerably more than $20 million when all is said and done.
Source: bloomberg.com, “Wendi Murdoch Said to Hire New Lawyer in Rupert Divorce,” Chris Dolmetsch, July 31, 2013