While Facebook’s recent IPO looks like a flop, the same can’t be said of company founder Mark Zuckerberg’s decision to marry. Zuckerberg wed his college girlfriend, Priscilla Chan, last Saturday, May 19, a day after the IPO, and California family lawyers believe that this arrangement is more than happenstance.
First, if Zuckerberg and Chan never married and continued to live together as boyfriend and girlfriend, upon a breakup Chan could potentially claim that an agreement existed to pool finances. If a court found that such an agreement existed, Zuckerberg’s $20 billion fortune would be at risk.
Second, when a couple decides to divorce, California courts follow the community property regime. This doctrine holds that any property created during a marriage is community property, and should be split evenly after divorce. Only a small number of states, including California, Nevada, Idaho, and Texas, abide by this regime if there is no prenuptial agreement that waives community property rights. In most states, equitable division rules reign: the property acquired during marriage is not divided fifty-fifty, but distributed to each spouse according to what a judge deems fair.
Considering Zuckerberg’s wealth, he and Chan likely signed a prenuptial agreement before marriage that would set out the division of the couple’s assets in the event of a divorce. If the two waived community property rights, Chan would have no claim to Zuckerberg’s holdings in Facebook stock that vest during marriage, nor would she be able to go after Zuckerberg’s previously-held stock if it increased in value during the union.
Pennsylvania follows equitable division rules, and the relevant statute can be found here. In deciding how a married couple’s assets are to be distributed upon divorce, the court considers a number of factors, including the length of the marriage, prior marriages of either party, the age and health of each party, the opportunity for each party to acquire future capital assets and income, the current sources of both parties’ income, and the standard of living of the parties established during marriage. In consideration of these factors, the court does not take into account any alleged marital misconduct.
Both the community property and equitable division regimes are supported by valid policy reasons. The community property doctrine is more administrable, as its simple fifty-fifty rule decreases the possibility that a judge unfairly prejudices one party. But, while the equitable division doctrine seems more complex in its factor-weighing approach, is it fair for a non-working party to receive half the assets acquired by the breadwinning party during marriage?



