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Cruise pays no alimony, thanks to prenuptial agreement

Divorces can become long, drawn-out court battles when large amounts of money and property are involved. When one party begins the marriage with significant financial assets or a high earning potential, a prenuptial agreement can provide peace of mind as well as valuable protection should a divorce occur.

The widely publicized celebrity divorce of Tom Cruise and Katie Holmes may be of interest to Coloradans considering a prenuptial agreement. On Aug. 20, a judge approved the divorce settlement of the former couple, who were married for six years and have one child together.

The two reached an agreement in record time, especially considering that both had financial and custody concerns. Reportedly, Cruise will pay $400,000 in child support each year for the care of the couple's 6-year-old daughter, who will live with Holmes. This support will total approximately $4.8 million by the time the child turns 18. However, Holmes will receive no spousal support.

The settlement was reached quickly after the two filed for divorce on June 28, and it was approved by a Manhattan judge last week. Cruise reportedly has a fortune of approximately $250 million dollars. Without a prenup, Holmes could have filed for significant spousal support and assets, even if only the amount Cruise made during the marriage was treated as marital property.

Though Holmes certainly has significant earning potential in her own right, her career has not been as long or as prolific as Cruise's. Nonetheless, resolving a divorce and custody case in only a few months may have been more appealing to the star than seeking further support. This case is a prime example of how a prenuptial agreement can benefit both parties.

Source:, "Katie Holmes got how much from Tom Cruise in Divorce Deal?!" Josh Grossberg, Aug. 24, 2012

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