Do You Need A Prenuptial Agreement?

By: Sheryl J. Seiden, Esq.

A Prenuptial Agreement is an agreement entered into before a marriage to establish certain rights in the event of a divorce, death and during the parties’ marriage.  In order for a Prenuptial Agreement to be enforceable, it must be in writing, signed by both parties with their signature notarized, and provide full disclosure of the parties’ assets and income. While it is advisable for the couple to each have their own attorney, it is not required as one spouse can waive the right to counsel.  The agreement also should not be so one-sided that it is deemed unconscionable at the time of execution. The agreement must be entered into voluntarily by both spouses and without any coercion.

Prenuptial Agreements are recommended when:

•        One spouse owns a business;

•        One spouse owns property;

•        The couple is moving into one spouse’s residence;

•        A spouse is anticipating a significant inheritance;

•        One spouse has significantly more assets than the other spouse;

•        There are children from a prior marriage/relationship;

•        One spouse supports their children whereas the other spouse does not;

•        One spouse is the beneficiary of a trust; or

•        One spouse has significant debt or loans

A Prenuptial Agreement can be used for the following purposes:

•       Preserve premarital assets;

•        Preserve the appreciation of premarital assets;

•        Limit an obligation to pay a spouse’s loans/debts;

•        Establish how future assets and income earned would be distributed;

•        Waive or set alimony in event of a divorce;

•        Establish how expenses will be paid during the marriage;

•        Create an estate plan;

•        Waive statutory entitled to a portion of one spouse’s assets in event of death; or

•        Set life insurance obligations for both spouses.

Prenuptial Agreement can provide a creative means to define the couple’s responsibilities during their marriage and after their marriage. It cannot address custody or child support issues. Not every couple getting married needs a prenuptial agreement. To determine if a prenuptial agreement would benefit you, contact the attorneys at Seiden Family Law for a consultation to review your goals and options.