ATHLETES AND PRENUPS: PLAN NOW OR PAY LATER

An online item appearing on PressBoxOnline.com and written by Joseph Geier discussed the incredibly high divorce rate for wealthy professional athletes (60-80%), as well as some of the ways athletes can help themselves deal with this problem both personally and financially.

Personally, organizations such as Professional Athletes Outreach (PAO) started by Norm Evans and his wife, Bobbe, in 1971, help athletes by teaching players and coaches how to manage their marriages, money, and fame using religious principles.  Evans was an offensive tackle for 14 years, mostly for the Miami Dolphins.

Financially, prenups are a very good way for athletes to protect their finances and their families in the event of divorce. The piece quoted Raoul Felder as saying that “The percentage of pre-nups amongst athletes is appreciably lower compared with non-athletes at the same economic level.”

Now, I have no idea what actually facts, if any, Mr. Felder has in his possession to justify this claim, but the fact remains that every professional athlete earning a substantial income should have a well designed asset protection plan. Such a plan should probably include appropriate estate planning tools such as trusts, business plans (including corporations), and prenuptial agreements for married players and coaches.