AL BUDA (Ilona Budapesti)

Empowerer of Children. Avid Experimentalist. 2x exits, LP, and GP in VC. Ex-Buddhist monk. National speedskater.

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

https://t.co/F7Xs7UnY9z

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

4. take more cash off the table and ensure you are both FIRE (financially independent)
5. you can always offer to take less than 50% during an amicable divorce, no need to act on it now
6. taking non-voting shares would be better for the company's prospects because it makes investors more comfortable

What are your thoughts? #EntrepreneurLife #exitplanning

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

#vc #founder #spouse Would you sign a postnup with your spouse with a potential net worth of $200M+?#estateplanning #FinancialPlanning #kids #parentsfirst #uhnw
Controversial reddit 7 days ago https://t.co/kjxUy03LPP
My spouse started a company a week before we got married. We have been married for 4 years, and in that time, the company has exploded in value. My spouse's shares on paper are worth 9 figures, and we have sold some shares, bringing our liquid net worth to about $10M after taxes and paper net worth to about $200M. We are in our late 20s/early 30s and plan to have kids in the future

The growth was unexpected and when we just recently started estate planning, the talk of a post-nup came up, particularly as it relates to the shares of the company. We never got a prenup when we got married, there was no need.

Here's the dilemma: according to NY law, I would likely be entitled to 50% of the appreciation of the company stock in the case of divorce. On the other hand, my spouse's efforts are largely what have made the company successful, so according to my own perception of fairness — when I put myself in my spouse's shoes and imagine the roles were reversed — I don't think that it would be fair for me to take half in case of divorce. This is what makes me open to the idea of a postnup. Because if I'm being honest with myself, I too would want a postnup if I was my partner.

The rough postnup idea we had was that any of our liquid net worth/condo/etc would be split 50-50. And any unsold company shares at the time of divorce would be split 80-20, with 80% going to my spouse. (Originally my spouse proposed 90/10). I currently make about $200k/year as a W2 employee, and I think my earning potential tops out at $300k. My spouse's earning potential is upwards of $1M if they were to exit their current company and join a new one as a W2 employee.

Yes, I encouraged my partner to pursue their idea and was ready to live on a reduced income for years knowing this would be a big risk, yes I put my spouse on my medical/dental insurance, yes I was the first customer, yes I continue to provide feedback on their service, yes I manage all the housework/appointments/planning/bill payments/etc so my spouse can focus on growing the company. But. I am not the one working 7 days a week. I did not come up with the idea. I do not pour my heart and soul into this company day after day and deal with the stress day after day.

Do you think an 80/20 company share split is fair? We currently have a great relationship and I think it would make my partner feel reassured that their hard work will be well-rewarded even if a divorce occurred. And the way I see it, I'm set for life no matter what. If the company explodes and I make 20% of $200M+, I'm set for life. If the company fails and I only get 50% of the current $10M liquid, I'm set for life.

Still, I could be leaving 30% of $200M (or more if the company continues to explode) on the table in case of divorce. And if future kids are involved, I'd want them to experience the same lifestyle with both parents. So, like, I should probably think hard about it? But I just can't see too many downsides besides walking away with a shit ton of money vs a huge shit ton of money. I plan to fatFire eventually and will be all set for retirement no matter what. Please open my eyes if I'm missing something.

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

Really good ideas:
1. ensure your spouse will take as good care of your elderly parents as you would
2. ensure if you pass away and spouse remarries to a golddigger your kids aren't left with nothing (e.g. use irrevocable trust now)
3. a $200m value on paper can and often does evaporate

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

Familiarize your chosen people with your assets, plans, and worst-case scenarios. Where are important documents? What actions would they need to take? Be thorough - this knowledge could be crucial someday. #BePrepareda Would you like a quiz/checklist to share with family?

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

#hnw #uhnw Part 3 of 7 I realized we didn't have good trustee or guardians in my family, everyone too old (only child, no cousins, living parent too old to walk stairs/run after toddlers, can't do English, doesn't understand stocks and investments) or navigate an English-speaking world. Time for some creative problem-solving. #EstatePlanning

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

Once you've chosen, invest time in introductions. Your potential guardians/trustees should get to know your kids well. Regular visits, shared experiences, maybe even vacations together. Build those relationships now. #FamilyPlanning Wanna vacation/workation with me and my family?

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

https://t.co/F7Xs7UnY9z

[Orange Book 🍊📖 @orangebook]

If the potential reward is a lifetime of freedom, you should absolutely take the risk.

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

@BPMCPA @BPMCPA @KyleBybee thanks for the informative article. Would you know if tax abatements can be sold or assigned on a secondary market?

[AL BUDA (Ilona Budapesti) @ilonabudapesti]

@SuzeOrmanShow Would anyone be interested in a calculator? Something that visualizes how much you can expect to have in the account assuming different growth rates and lengths of time?

[suzeormanshow @SuzeOrmanShow]

Parents, did you know opening a #RothIRA for your teen can be a game-changer for their #FinancialFuture? Discover the benefits and get started today!#TeenFinance #WealthBuilding #SuzeOrman #SmartInvesting #MoneyMonday https://t.co/kUOWnl5MlZ

[noygear.ai @noygearai]

Why? Because anything that you own will become public information if it goes through probate. #estateplanning #lessonslearned

[noygear.ai @noygearai]

Fortunately everything went well: two planned and super wonderful home births. I have gotten all our paperwork, passwords, accounts etc. in order but I SHOULD HAVE completed our estate plan before the birth.

[noygear.ai @noygearai]

UHNW Parent: Part 2 of 7 of my Estate Planning guide for you. #timemachinewish I'd go back and start estate planning during my first pregnancy. Young parents, this is as important as choosing a car seat. It's about safeguarding your assets for your kids. #NewParentMustDo