Pre-nups, Divorce and Asset Protection

What is a Pre-nuptial agreement?

In the simplest of terms, a premarital agreement is a written contract created by two people intending to be married. The agreement normally lists all of the property; savings and investments each person owns, as well as their debts, and it specifies what each person’s property rights will be after they marry.  Both spouses must normally have their own attorneys review the agreement, all assets must have been fully disclosed and separate property must often be segregated.

Before you get married, or propose to get married, protect your families with fairness in a way that won't squash the love!  Beware of the typical "prenup"; it doesn't always make for the best relationship.

Are Premarital Agreements Really Effective?

At present, every state allows them. However, a pre-nup deemed in judgment to be unfair (that seems to encourage divorce) or else fails to meet state requirements will often be rejected.

You should also know that courts are not likely to enforce agreements of a non-monetary nature. For example, you can agree on how you will divide your property if you divorce, but you cannot normally sue your spouse for failure to do visit you in the nursing home, even if your premarital agreement says that he/she must do so every Wednesday night.

Whether you create a premarital agreement depends on your circumstances and on both of you as individuals. The majority of premarital agreements intentionally dodge the mandates of state law in the event of a divorce or at death. 

Frequently this happens when one partner has property that he or she wishes to keep if the marriage ends -- for example, a significant income, or a family business. Individuals who have children or grandchildren from prior marriages make up the majority of most premarital agreements.