Katie Holmes Signs $40 Million Pre-nuptial Agreement

Tom Cruise and fiancee Katie Holmes have signed a $40 million pre-nuptial agreement.

TomKat who welcomed their baby daughter, Suri, into the world last month - spent weeks thrashing out the details of the financial agreement, which determines who gets which assets if they ever split.

An $14.7 million trust has been set up for Katie and her baby regardless of whether the couple wed. But if they do marry and later divorce, Katie Holmes will receive an extra $26 million from Cruise.

The pair have reportedly decided to get married this July now their pre-nup has been finalised, according to a report in Britain's Daily Mail newspaper.

A source said: "Katie's family have always been very sceptical bout their romance. They were shocked that Katie got pregnant so quickly and didn't like the way she had turned her back on Catholicism for Scientology.

"But now this deal has been sorted out they are at least relieved that Katie and her baby will be financially secure for life, even if she doesn't marry Tom."
Source: The Arizona Republic