With wedding season right around the corner, it is important to consider one aspect of wedding planning that many couples overlook or find distasteful: a prenuptial agreement. As couples are marrying later in life or embarking upon a second marriage, it is reasonable to expect that assets and debts have come into being. A prenuptial agreement can address how those premarital assets and liabilities will be addressed if the marriage breaks down.
Understanding Prenuptial Agreements
A prenuptial agreement, commonly referred to as a “prenup,” is a legal contract entered into by a couple before they marry. This document outlines how assets and debts will be handled in the event of a divorce, separation, or death. While discussing a prenup may not be the most romantic aspect of wedding planning, it’s a practical step that can provide clarity and protection for both parties.
What is a Prenup?
At its core, a prenup establishes the property and financial rights of each spouse in the unfortunate event that the marriage ends. Preparing a prenuptial agreement is analogous to preparing a will and related estate planning documents.
Who Needs a Prenup?
Contrary to popular belief, prenups aren’t just for the wealthy. Prenups can be helpful for small/family business owners and anyone looking to add a degree of clarity and certainty in the unfortunate event of a divorce. This includes individuals with significant debts, those who own a business, and those who want to safeguard inheritances or personal assets.
What Does a Prenup Cover?
A prenup can cover a variety of issues, including:
- Asset Distribution: How property and assets will be divided.
- Debt Allocation: How debts will be handled and who will be responsible for them.
- Spousal Support: If alimony will be paid, and if so, the terms of those payments.
- Business Protection: How a business owned by one spouse will be treated.
However, there are limitations. In New Jersey, a prenup cannot address issues of custody, parenting time, or child support.
How to Get a Prenup
Obtaining a prenup typically involves the following steps:
- Discussion: Both parties should openly discuss their financial situations and expectations.
- Legal Representation: Each party should have their own attorney to ensure their interests are represented.
- Drafting: The prenup should be drafted, outlining all agreed-upon terms.
- Review and Sign: Both parties should review the document carefully before signing.
Conclusion
While the thought of a prenup may bring discomfort, it’s a strategic move that can prevent future stress and conflict. By setting clear expectations and protections, a prenup can actually strengthen the foundation of a marriage, ensuring that both parties enter the union with a mutual understanding of their financial partnership.
I hope this article provides a clear overview of prenuptial agreements and their importance. If you’re considering a prenup, it’s advisable to consult with a legal professional to understand the specific laws and requirements in your state.
