The biggest news in Hollywood this weekend is the divorce of power couple Tom Cruise and Katie Holmes. Now people are speculating on the details of their prenuptial agreement. Katie wasn’t poor when she married Tom Cruise five years ago and she will likely be worth more as they finalize their separation.
It has been confirmed that the couple has a prenup. According to sources, the contract gives Katie specific amounts depending on how long their marriage lasted. A certain amount takes in effect after five years of marriage and another after ten years.
The prenuptial agreement contains details on division of property as well as child custody but the exact details are not made public. The couple has been married for over five years. This means that Tom Cruise has to pay Katie Holmes a certain amount.
According to a matrimonial practice lawyer, the practice of having a prenuptial agreement is common among the rich. Most make incremental payments for every year or every five years. To protect oneself against a gold digger, a prenup can stipulate that the spouse doesn’t get anything after justa year of marriage or an allowance for relocation. For longer marriage, the payouts can be $100,000 per year for one to five years and then $150,000 per year for five to ten.
The examples are for a typical rich person but for a multibillionaire like Tom Cruise, the stakes might be higher. He made $75 million in the past year and over the last five years he earned around $200 million. On the other hand, Katie Holmes got less than $5 million in the past year. It is unlikely that Katie will get a mere half a million dollar from the divorce settlement. There are speculations that she will get around $1 million per year of marriage.