When Play Resumes, Pay Resumes: Why Athletes Need Prenuptial and Postnuptial Agreements
The sports world, just like every other industry, took a backseat to the global pandemic beginning in the middle of March. We have been without sports since then, as Major League Baseball cancelled the remainder of Spring Training, sending players home from Arizona and Florida. The NBA and NHL paused their seasons, MLB Opening Day was cancelled, NASCAR halted races, the PGA postponed events… the list of sporting events put on hold goes on and on.
It is now official – there will be sports this summer. As we move closer to July, the NBA and MLB have finalized the logistics and there is a plan for sports in July. Opening day for MLB’s abbreviated 60 game schedule will likely take place on July 24, 2020 and the NBA is set to resume on July 31, 2020 at Disney World. With sports preparing to return in less than one month, now is an ideal time to advise your client to get the prenuptial agreement or postnuptial agreement to protect and preserve wealth and assets. Whether you are a sports agent, financial advisor, a business attorney, a trust and estate attorney, an intellectual property attorney, an insurance advisor, or a family law attorney like me, who works with athletes and entertainers, there is a common theme of protection and preservation of a client’s wealth and assets.
Pay resumes when play restarts
Many athletes did not receive paychecks while their leagues were put on pause due to the Coronavirus pandemic. That will change as soon as play restarts. Whether your client is playing on a rookie contract or the final year of a mega-deal, working with a family law attorney on a prenuptial or postnuptial agreement is an important way to protect an athlete’s income and assets, both current and future.
Endorsement deals impact asset division and alimony
If you are working on signing your first endorsement deal, or have been signed to one for years, a prenuptial or postnuptial agreement can protect the income you make from that deal. Having a prenuptial or postnuptial agreement in place that protects an athlete’s assets and outlines how a player’s salary, endorsement deals, and other sources of income will be handled in the event an athlete files for divorce is important.
Craft the perfect prenuptial or postnuptial agreement before sports resume
Working on a prenuptial or postnuptial agreement now while sports have yet to start up again is the perfect time for an athlete to take care of off-the-field matters. This includes financial planning and asset protection.