I have a friends friend who works in finance that never married his ex, yet they had 2 kids. They split amicably and still spend time together with the kids, but are no longer interested in romantically pursuing their relationship.

I asked my friend how badly he got divorce raped, to which he answered 'they were never married'. He said something along the lines that they structured an agreement and she is given a salary and it turned out to be cheaper with taxes.

I have two questions:

  • Does anyone have any idea exactly what this arrangement is?
  • Along this line of thinking, would a business contract not suffice as a binding contract between two parties to manage the risks of engaging in a child rearing relationship? I understand that this is essentially a pre-nup, but can we extend the concept to the entire institution of marriage?

For example, instead of me being the head of the household married to a stay at home wife that takes care of the kids, could I instead "employ" my partner in a non-profit partnership with the goal of raising the children? We sign an agreement, which includes the terms of engagement and clauses for termination.

In essence, tailor your own marriage without involving the state. In the name of personal liberty and freedom, what would be the challenges or implications of setting up such an arrangement?