A Prenuptial Agreement Protects Your Property Rights and Financial Interests

A prenuptial agreement is a contract between you and your fiancé that specifies the assets and liabilities that you each bring to your marriage and can specify which assets will be considered each of your “separate property” if the marriage is terminated by divorce or your death or the death of your future spouse. In addition to providing vital financial information to each party, a prenuptial agreement often results in the parties having very important financial conversations prior to the marriage which can be very beneficial to secure and good marriage.

Basically, a valid prenuptial agreement specified what is and is not considered marital property, protecting both you and your future spouse’s personal assets. For example, if you have significantly more wealth than your spouse, a prenuptial agreement can protect your existing wealth from becoming marital property if you get a divorce. In addition, the agreement can specify if there is any right to spousal support, what we used to call “alimony” if the marriage terminates by divorce or legal separation. Of note, prenuptial agreements can also be used to protect the spouse with less wealth, as well, by ensuring they are adequately provided for in the event of a divorce.

Other important benefits of a prenuptial agreement are:

• It provides you with vital financial information about your spouse’s assets and debts and with that knowledge you can work together on a financial plan for your marriage. If you own a business and your marriage ends in divorce, a prenuptial agreement can prevent your spouse from gaining a controlling interest in your business. In fact, if you have Shareholders, it is often a requirement to have a prenuptial agreement in place. If you or your spouse are a stay-at-home parent, choosing to focus on keeping the home and raising a family instead of working, a prenup can ensure you are properly compensated for the years spent outside the workforce.
• A prenuptial agreement ensures that your estate plan will be enforced. Your assets will be distributed according to your instructions and not left to the courts or your surviving spouse to decide. Also, inheritance laws usually favor the current spouse, so if you have children from a previous marriage, having a valid prenup can ensure the property rights of those children are protected in the event of your death.

In order for a prenuptial agreement to be a binding legal contract, it needs to be prepared by an experienced attorney who is experienced in matrimonial law, and well versed in the laws governing marriage contracts. When it comes to the future nothing is ever guaranteed, but having a valid prenuptial agreement can give you both the peace of mind you need to embark on your new life together. 

The Levy Craig family law team makes client satisfaction, good communication and strong, effective advocacy a top priority.  We are available to schedule telephone or video conferences and meetings, answer any and all questions, and draft and file documents and pleadings. Please call Janet Woolsey at 816-454-7474.