Exclusive: Inside Charlie Sheen's Cheap Prenup
Charlie Sheen and Brooke Mueller deny they're divorcing, even as they live apart following Sheen's domestic assault arrest, two stints in rehab, and rumors of call girl trysts. We have a copy of the couple's prenup and a possible explanation.
Sheen and Mueller tied the knot in Beverly Hills on May 30, 2008. At a "quirky" wedding ceremony attended by 68 friends and family members, the pair exchanged warm, giggling vows with Sheen promising to "clean my closet at least once per decade" and "mute the ball game when Brooke says." At the garden reception that followed, Sheen told a reporter that he was "devoted" to Brooke and felt "a new sense of commitment" in his life. "I was telling a couple of friends last night that this feels like my first real marriage," Sheen said. "The first one was a show, the second one was a con, and this one is the real deal."
In fact, the "real deal" took place three days before the wedding ceremony when the couple sat down to sign a 60-page prenup outlining the dispassionate side of their marriage, a legal agreement that provided Brooke with an annual allowance ($300,000), a stake in Charlie's lavish Beverly Hills mansion, and described in painstaking detail how the couple's assets would be divided—or not divided—in the event of divorce.
With two marriages, one failed engagement, and one unmarried baby mama under his belt, the Sheen-Mueller prenup is a coolly calculated document tailor-made for Hollywood's most notorious lothario. It outlines Charlie's waning net worth, hints at mistakes from his prenup with Denise Richards, and shows how Sheen's attorneys shield his projected $1.3 million-per-episode Two and a Half Men salary from his wives. Charlie Sheen is a creature of Hollywood. This is his Hollywood marriage.
What Brooke Gets
For marrying Charlie, Mueller received $500,000, to be paid "within 180 days from the date of solemnization of the parties' marriage." Both spouses signed away their claim to the other's earnings, which means, if they divorce, Brooke is not entitled to any portion of Charlie's assets or any spousal support. The prenup explicitly avoids any discussion of child support—Brooke and Charlie had twins in March of 2009—a matter that was to be negotiated separately.
But Mueller is provided an annual allowance as well as an appreciating share in the couple's Beverly Hills home. Each year Brooke receives an "anniversary payment" of $300,000, "payable within 30 days of the anniversary of the marriage" for the first 10 years of their marriage. If Charlie defaults on a payment, Brooke must send him "a written notice of default;" if he fails to pay ten days after that, the anniversary payment will accrue interest at "an annual rate of prime plus two percent." If they divorce mid-year, Brooke receives a pro-rated anniversary payment, calculated to the month.
Charlie is required to "pay all of the parties' living expenses," and Brooke is awarded a stake in Sheen's home located on Aubrey Road in Beverly Hills' Mulholland Estates gated community. Brooke's share of the house increases based on how long the marriage lasts. If they divorce, Charlie can elect to buy her out, or he can opt to sell the home and divide the proceeds.
In the event of divorce, Brooke receives a $100,000 relocation fee and whichever of Charlie's cars is "then driven by Brooke." She then has 90 days after "receipt of payment" to vacate the premises.
With each passing year, Brooke's share of the Aubrey Road home increases by 10 percent. The following chart estimates each partner's equity in the home assuming the property is valued at $8.5 million, and assuming Charlie pays his mortgage on time.
So if Brooke filed for divorce this week, she'd walk away with the following:
- Wedding Payment: $500,000
- 2009 Anniversary Payments: $300,000
- 2010 Anniversary Payment, Pro-Rated: $275,000
- Aubrey Road Real Estate Share, Pro-Rated for Two Years and 11 Months: $2,356,000
- Relocation Fee: $100,000
- Car: For the sake of argument, let's assume it's a four-door 2009 Mercedes such as the one Charlie owned until February when it ended at the bottom of a cliff: $35,000
- Total: $3,566,000
How Much Is Charlie Worth?
At the time of the prenup, Charlie Sheen's net worth was $16.1 million, only $1.4 million of which was liquid—a surprisingly low figure for a man who has been A-list actor for three and a half decades and is capable of earning upwards of $1 million to film a single episode of his CBS sitcom. At the time the prenup was signed, Sheen's Aubrey Road home was estimated to be worth $8.5 million. He also lists a watch collection worth $5.6 million, and art work and home furnishings worth another $3.4 million. His retirement account holds a mere $3,908. A list of Sheen's assets appears in the prenup:
Sheen's real money—his Two and a Half Men money—is sealed away in 9th Step Productions, Inc., a corporation that "loans out the acting services of Mr. Sheen" to Warner Bros. as part of his Two and a Half Men contract. Sheen profits from the TV show in two ways. In addition to a fee Sheen is paid per episode, he is also entitled to 12 percent of the show's "adjusted gross income," which the prenup estimates "could exceed $75 million" over the life of the contract. At the time the prenup was executed, Warner Bros. had already advanced Sheen $12 million. And that figure was calculated before Sheen entered into contract renegotiations, which are currently ongoing.
The prenup effectively walls off the money Sheen makes from Two and a Half Men from Brooke, which may be a lesson he learned the hard way. The document indicates that 9th Street Productions' earnings could be reduced based on "certain provisions of an agreement pending finalization between Mr. Sheen and his ex-wife," a footnote that presumably refers to Sheen's most-recent ex, Denise Richards. This time around, though, the bulk of Sheen's income is untouchable. (If Mueller does divorce Sheen, he could make back the $3.5 million he'd have to pay her in a matter of weeks.) The footnote also references several other companies that Sheen either controls or has a stake in, such as Three Dog Par, LLC and Silver Wear LLC, "clothing design and manufacturing and costume jewelry businesses, respectively." (The prenup says Charlie's investments in these companies "approximates zero.")
The Worth of Brooke Mueller
Mueller didn't bring much to the marriage. Although tabloids have described her in the past as a "real estate investor," Brooke's sole real estate investment at the time was a minority share of her mother's home in Los Angeles. She also had interest in her father's marital trust (which benefits her mother), was the beneficiary of another trust in her mother's name, owned joint bank account with her mother, and a Morgan Stanley account of her own. None of these assets' values are listed in the prenup, presumably because they didn't amount to much.
Why She Might Be Staying Put
In her Christmas Day 911 call, Brooke said Charlie held a knife to her throat and threatened to kill her for asking for a divorce. Since then, they've both been to rehab, Sheen has been reportedly dating a former hooker, and—as of this week—they're living apart.
So why are they still together? The prenup offers one reason: The longer this takes, the more Brooke makes.
Related
See Also
Charlie Sheen in Pictures (below)
[Photos at top via Getty Images]