How to protect your assets with a prenuptial agreement
Many of us remember the “good ol’ days” when dad married mom and took on all the burdens of being the major bread-winner for the family while mom stayed home and took care of the home and raised the family.
Dad knew that once he said “I DO” he knew that his paychecks were handed over to his loving wife who would in turn take care of all the household expenses.
It was common for a woman to think – “what’s mine is mine and what’s his is mine” – which is no longer the case in today’s society. Today things are so much different and much more complex.
Prenuptial agreements (a/k/a antenuptial agreement, or premarital agreement) were unheard of years ago. The prenuptial agreements back then, if something were to sour in the marriage, were known as DIVORCE LAWS.
But like I said – today things are different. Our lives are different.
To begin with – a prenuptial agreement is a contract that is entered prior to taking your marriage vows. Although a prenuptial agreement can include many different things, it is most commonly used for what would happen after the divorce – such as –
Division of property
Spousal support, etc.
There are not only prenuptial agreements for those that are planning their marriage, but there are also cohabitation agreements for unmarried couples.
Also, for those that are already married and want to enter into an agreement can file a postnuptial agreement or a post marital agreement.
The laws vary from state to state. Years ago many judges would frown upon such agreements because they believed they were corrupting what marriage was supposed to stand for.
Each party should have an attorney representing them to make sure that this agreement is enforceable. Many times both parties to the agreement have a private judge present during the signing to ensure that neither party was coerced into the agreement. Many times the process is video-taped.
Should they divorce, these agreements can limit property rights and alimony. And these agreements can also dictate what happens when one of the parties die. Such an agreement can act as a contract to make a will and/or eliminate your rights to property, probate homestead, probate allowance, right to take as a predetermined heir, and the right to act as an executor and administrator or your spouse’s estate.
Prenuptial agreements is only valid if it is completed prior to marriage. If a couple is already married, they may draw a post-nuptial agreements. Such agreements must be in writing – oral agreements are not recognized.
A prenuptial agreement does not regulate issues relating to the children of the marriage in regards to custody and access issues. Anything matters involving children must be decided in the best interest of the children.
There may be a “sunset provision” inserted in the agreement meaning that after a certain amount of time, the agreement will expire; possibly after the birth of a child, unless the parties renew the agreement.
In some states, after a certain number of years of marriage, the prenuptial agreement will lapse.
You may wonder why anyone would want a prenuptial agreement.
Since it is basically has to do with the financial consequences of the marriage ending, there are reasons for these agreements:
If you are wealthier than your partner this ensures they are marrying you for who you are and not your money -
If you make as much money as your partner this can limit the amount of alimony paid out -
If you are re-marrying your legal and financial concerns are often quite different than in your previous marriage. There now could be children, support obligations, home ownership, etc. -
If your partner has a high debt load you don’t want to be responsible for their debts if your marriage ends -
If you own a business and your marriage ends, your spouse can end up owing a share of the business and other business partners may not want this to happen –
You don’t want your spouse to overturn your estate plan with what you want done with heirlooms, etc. –
If you are much poorer than your partner an agreement can ensure that you are financially protected -
And if you quit your job to raise your children an agreement can ensure that the financial burden of raising children is shared by both partners.
Protect your rights and protect your assets. For a prenuptial agreement form for your state – click here.


