A premarital agreement, perhaps better know as a "prenup," is essentially an "insurance policy" againist an unlikely and unforseen "what if" scenario, providing yourself, as well as your spouse, protection on the legal issus resulting from a divorce. Premarital agreements can be helpful in reducing many conflicts associated with a divorce, and even save you money in legal fees.
Premartial agreements are customized for each individual couple. Depending on the priorities of the couple, premartial agreements can deal with a vast majority of issues, such as property and assets, ownership rights in a business, family heirlooms, spouse support, etc. A premarital agreement essentially ensures that the property or debt of one spouse prior to the marriage remains the property or debt of the spouse subsequent to a divorce.
When entering into a premarital agreement, communication is essential. Both parties must fully inform each other of all assets and property they own, as well as their current financial situation. Failing to fully disclose all property and assets to your spouse before the marriage may result in those items becoming marital property.
If you do decide to enter into a premarital agreement that agreement is not set in stone. The parties may make changes to the agreement following the marriage, as long as both parties consent to the changes made.
Premartial agreements are not only for the abundantly wealthy. Nowadays, even couples of more modest means are entering into premarital agreements due to the frequency of divorce, high legal fees, and animosity associated with divorcing couples.
If any of the following factors apply to you, I encourage you to contact my office today to schedule a free confidential consultation with me:
- You own assets such as a house, stock or retirement fund
- Own all or part of a business
- May be receiving an inheritance
- Have children and/or grandchildren from a previouse relationship/marriage
- One spouse is much wealthier than the other
- One spouse will be supporting the other throughout college/graduate school
- Have loved ones, such as elderly parents, whom you care for
- One spouse has incurred a significant amount of debt
- One spouse is giving up his or her career to be a stay at home parent