Taylor Swift, Travis Kelce wedding nears, but do they have a prenup?
Preparations are underway as Taylor Swift and Travis Kelce's wedding day nears, and experts say is likely a prenuptial agreement will be included in those final touches.
The couple is expected to celebrate their wedding at New York City's famous Madison Square Garden on July 3, where CNN and ABC reported they plan to host roughly 1,000 guests in an event that could last into the early hours of the next morning.
In recent days, crews have been spotted working around the clock as equipment and supplies are moved into the arena. From increased security in the area to alleged nondisclosure agreements to ensure details of the event are kept underwraps, Swift and Kelce, both 36, seem to be covering all their bases.
With the world's richest female musician, who has been vocal about the consumption and sale of her music, marrying a three-time Super Bowl champion, financial experts tell USA TODAY the establishment of a prenup makes sense for the soon-to-be newlyweds before heading down the aisle.
"If you just even think about Taylor Swift and her relationship with Spotify and releasing her own versions of things, branding is important to her," says Jesica Ray, senior lead advisor at financial consultancy Brighton Jones. "So making sure she retains that identity, that individual recognition, likely will carry into the way she approaches things with her marriage as well."
Here's what to know about the possibility of Swift and Kelce signing a prenup.
What is a prenup and how does it work?
A prenup is a financial agreement a couple can enter before getting married, outlining what will happen to their money and other assets – including homes, inheritances, businesses or debts – if they separate and get divorced.
These agreements can help alleviate some of the animosity in divorces and are a way for couples to have difficult conversations before getting married, San Diego-based lawyer Deveney Wells-Gibson and founder of The Prenup Queen, tells USA TODAY.
Swift and Kelce are both tycoons in their respective fields, but they're not exactly entering the world of marital finances on an equal footing. The Grammy-winning singer and NFL champion reportedly have a combined net worth of $1.67 billion, according to Forbes.
Swift has an estimated net worth of $1.6 billion, which is based on a valuation of earnings from music sales, concert tickets, streaming deals and merchandise, her highly lucrative Eras Tour, numerous homes and private jet. The latest Forbes estimate puts Kelce's net worth at $70 million thanks to his multimillion-dollar football contract and Amazon-backed podcast "New Heights."
This reveals a $1.5 billion income gap between the lovebirds, which Ray said increases the odds of them getting a prenup to help manage the financial impact on their marriage.
A prenup can also create "clarity" for Swift and Kelce regarding the various assets they have created individually and as a couple, which can include "hidden assets" such as brand partnerships and other "unique" business investments that may not "show up very clearly on a tax return."
In recent years, Kelce – who proposed with an engagement ring worth an estimated $650,000, according to Forbes – has leveraged his football success into sponsorship deals with top brands including General Mills, Subway, Campbell's Soup and State Farm. Swift, on the other hand, has created a consumer subculture within her fanbase, galvanizing Swifties with limited-edition deluxe albums and vinyl variants of her chart-topping pop music.
"There are non-specific assets around branding that may exist for both of them and the identities that they want to have," Ray explains. "All of that can be written into a prenup, so that there's complete transparency should anything ever happen in the future."
"It helps reduce conflict at the end of the day," she adds.
Swift's biggest asset by far is her fully acquired music catalog, much of which was not factored into the singer's net worth estimate. The "Karma" songstress purchased the master rights to her first six albums in May.
As an artist, Swift may need to evaluate royalties, intellectual property rights, touring income and control over her music catalog. In the world of sports, Kelce faces economic factors related to his career longevity, endorsement opportunities, injury risk and variable income tied to his NFL performance.
Without the structure of a prenup, Swift and Kelce put themselves at risk of a "very lengthy divorce process," Ray says, on the chance they ever decided to split.
A prenup could 'reduce conflict' between Swift and Kelce in the future
In 2025, approximately 42% of new marriages are likely to end in divorce, sociologist Yifeng Wan wrote for the Institute for Family Studies in July. On the money front, divorce is among the leading causes of bankruptcy, Wells-Gibson previously told USA TODAY.
"If they are together and they're happy, and they’re able to mutually communicate to agree upon terms without a legal document, that's amazing," Ray says. "If they aren't, and there's a separation that were to ensue, the lack of clarity around all of these assets could lead to a very, very costly trial."
Like many wealthy couples, Swift and Kelce may opt to keep their own assets in case of a split.
"It's not like one person's working, and one person is not. Both people are contributing," Ray says of the famous pair. "Both people have brands. Both people have love and respect for one another, and it's sensible to keep the assets that they've built themselves as their own."
A postnuptial agreement is also on the table and is similar to a prenup, but established after a couple is married. Ray says for Swift and Kelce, a prenup may be more ideal and would allow the couple to maintain their privacy with "neutral dispute terms," which lay out how fiscal conflicts should be resolved during a divorce.
"There's significant wealth for both of them," Ray says. "Having all of that really clearly outlined going into a marriage will make them feel like they're going in as an even stronger union than if they were to do it post-marriage."
Aside from dividing personal assets, Ray says a prenup can help Swift and Kelce identify possible joint assets with their post-marriage earnings, as well as set up spousal support for one another if a divorce were to take place.
"Prenuptial agreements don't need to be all the sad financial division conversations. It can be, 'Even if we were to get divorced, I care about you today, and I want to make sure that you are provided for,'" Ray says. "That is important as you build a life together, and it helps remove some of the insecurities that might come up with asset disparity."
Contributing: Saleen Martin and Bryan West, USA TODAY