Prenuptial Agreements
A prenuptial agreement is an important tool to protect your money, property, and other assets prior to marriage. When you and your soon-to-be spouse enter into a prenuptial agreement, one or both parties will relinquish their rights to certain property or assets that they would typically be entitled to by law. This can help you maintain control of these assets in the event of a divorce.
The majority of states adhere to the doctrine of equitable distribution, which divides assets in an equitable, but not necessarily equal manner during a divorce. A smaller number of states adhere to the doctrine of community property, which will divide all assets equally when a couple divorces. Regardless of the approach used by your state, it may not present the fairest or most desirable way to distribute assets if your marriage ends. A prenuptial agreement allows you to specify the ways in which these assets will be divided prior to the marriage, providing you with some protection and peace of mind.
When Should I Consider a Prenuptial Agreement?
You don’t necessarily need a prenuptial agreement in all marriages. You should consider your life stage as well as the financial assets you and your spouse are bringing to the marriage to determine whether you should sign a prenuptial agreement.
In most instances, you will not need a prenuptial agreement if you and your spouse are at similar life stages:
- You’re both entering into a first marriage
- You both have comparable incomes or earning capacities
- There are no children from prior relationships
- Neither of you owns or has an interest in an established business
- Neither of you have amassed substantial property, wealth or other assets before the marriage
However, a prenuptial agreement is often important when you and your spouse are at different life stages or have a significantly different financial status prior to the marriage. Common situations where a prenuptial agreement would be desirable include:
- One or both of you are entering into a second marriage
- One spouse is entering the marriage with significantly greater wealth and assets than the other
- One or both of you have children and would like to ensure they receive any wealth or assets you’ve acquired prior to this marriage
- One or both of you has ownership interest in an established business
You Need an Experienced Attorney
Due to the serious financial consequences associated with a prenuptial agreement, it’s crucial that you work with an experienced family law attorney who can make sure the agreement is fair, enforceable, and protects your rights. Whether you’re trying to protect your assets or you’re relinquishing your rights to your partner’s assets, you should always seek legal representation before entering into a prenuptial agreement.
