What is a Prenuptial Agreement?
Prenuptial Agreement
Half of all first-time marriages will end in divorce and that rate escalates for subsequent marriages. Those are scary facts, so understandably it is best to be prudent before taking the plunge! Back in the day, people had something called a “courtship”, and, though the concept seems very antiquated today, perhaps the fact that people spent more time getting to know one another accounted for marriages of longer duration and a lower divorce rate. But, the theory of a longstanding romance before cohabitating or marrying isn’t always true either. You may think you know someone well, but … until you live them you don’t really know them as well as you thought you did.
It seems that as equally antiquated as the formal courtship, is the phrase in traditional vows “what therefore God hath joined together, let not man put asunder”; it is difficult to pinpoint what forces unravel a marriage anymore – the people themselves or circumstances. It is not always about the relationship going sour due to lack of interest, or, simply falling out of love. No, it is often financial burdens, infidelity, domestic violence and/or various addictions which are the culprits that rear their ugly heads causing the marriage to go south.
Before the wedding
The discussion by a man and woman on the brink of entering marital bliss of getting a prenuptial agreement in place before “the big day” is bound to raise some hackles on the part of the person who did not do suggest the idea. This is because most people have a set notion about what a prenuptial agreement (also commonly referred to as a “prenup”) is. They may associate such a legal contract between a man and woman about to take their marriage vows, as something that just the rich and famous or celebrities do. After all, what aging, rich celebrity who marries beneath them, wouldn’t want to have their intended sign a contract that if the marriage didn’t work out that he or she would not be “taken to the cleaners”? But instead of someone’s ire taking the place of using common sense, the prenup should be considered a legal solution for both parties involved should the marriage not work out.
The primary reason for a prenup
Getting a prenuptial agreement is looking toward the future. Think of it as really no different than getting your ducks in a row for the future by investing in the stock market, directing a portion of your paycheck to a 401(k), or, even being savvy about getting a will or trust as well as accompanying documents like a power of attorney and medical directive signed and sealed and placed into a vault in the event of your early and/or unexpected demise. Put simply: these are just proactive matters that you do because you are an adult. Being an adult requires you to show some responsibility and think about your future … a future beyond tomorrow or next weekend.
By putting a prenuptial agreement in place, it will indeed protect your financial stability. This is important because of community property laws. As of 2015, there were some nine states that had community property laws – this means the state will take charge to determine how debt and property will be allocated in the event of divorce. The nine states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Thus, in these particular nine states, if no prenup has been put into place, you and your spouse will share all assets, property and debts equally, regardless of whose name is on the legal documents. If there are significant assets in the “pot”, and you are the person who did not contribute the bulk of the assets, you would think you’d be sittin’ pretty, however, if your spouse incurred multiple debts during the course of the marriage, guess who would be sharing the burden of paying off the debt(s)?
In the remaining 41 states states, separate property laws are in place. This means, if there are non-joint assets and debts in your name, and a prenup has been signed by the parties, there will be a division of assets and debts according to how you defined marital and separate property well in advance of your wedding. If a prenuptial agreement is in place, it will create a more even division of property and assets, and will guarantee that your spouse will not get the family heirlooms. Most importantly, the contract, or prenup, will define in advance of the wedding what you and your intended consider marital and separate property.
Dollars and sense
A prenuptial agreement is also a valuable tool to be used to ensure financial stability once the marriage falters. Many lawyers weave spousal support right into the prenup so division of assets is delineated before it become an issue. Likewise, there will be clauses for preserving the financial stability of the minor children, long before they arrive. Sometimes, of course, the children precede the marriage vows, so a legal maven, such as a top divorce lawyer in New Jersey, may tailor a prenuptial agreement to ensure from the get-go that money and assets will be directed to your children, not automatically funneled to your spouse. In the event of a second marriage, or a blended marriage, where children from one or more prior relationships may live in the household, a prenup will ensure your spouse will not acquire assets or property for his or her children as opposed to YOUR children.
No one on the threshold of a new life together wants to think about all these ugly scenarios that might transpire to you or your children and that might keep people from visiting a family law attorney before “the big day” and getting a prenuptial agreement in place. At any rate, cast aside your doubts and ill-will about the very idea of getting such a document in place for financial reasons – maybe, instead … just think of it as future peace of mind.
It seems that as equally antiquated as the formal courtship, is the phrase in traditional vows “what therefore God hath joined together, let not man put asunder”; it is difficult to pinpoint what forces unravel a marriage anymore – the people themselves or circumstances. It is not always about the relationship going sour due to lack of interest, or, simply falling out of love. No, it is often financial burdens, infidelity, domestic violence and/or various addictions which are the culprits that rear their ugly heads causing the marriage to go south.
Before the wedding
The discussion by a man and woman on the brink of entering marital bliss of getting a prenuptial agreement in place before “the big day” is bound to raise some hackles on the part of the person who did not do suggest the idea. This is because most people have a set notion about what a prenuptial agreement (also commonly referred to as a “prenup”) is. They may associate such a legal contract between a man and woman about to take their marriage vows, as something that just the rich and famous or celebrities do. After all, what aging, rich celebrity who marries beneath them, wouldn’t want to have their intended sign a contract that if the marriage didn’t work out that he or she would not be “taken to the cleaners”? But instead of someone’s ire taking the place of using common sense, the prenup should be considered a legal solution for both parties involved should the marriage not work out.
The primary reason for a prenup
Getting a prenuptial agreement is looking toward the future. Think of it as really no different than getting your ducks in a row for the future by investing in the stock market, directing a portion of your paycheck to a 401(k), or, even being savvy about getting a will or trust as well as accompanying documents like a power of attorney and medical directive signed and sealed and placed into a vault in the event of your early and/or unexpected demise. Put simply: these are just proactive matters that you do because you are an adult. Being an adult requires you to show some responsibility and think about your future … a future beyond tomorrow or next weekend.
By putting a prenuptial agreement in place, it will indeed protect your financial stability. This is important because of community property laws. As of 2015, there were some nine states that had community property laws – this means the state will take charge to determine how debt and property will be allocated in the event of divorce. The nine states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Thus, in these particular nine states, if no prenup has been put into place, you and your spouse will share all assets, property and debts equally, regardless of whose name is on the legal documents. If there are significant assets in the “pot”, and you are the person who did not contribute the bulk of the assets, you would think you’d be sittin’ pretty, however, if your spouse incurred multiple debts during the course of the marriage, guess who would be sharing the burden of paying off the debt(s)?
In the remaining 41 states states, separate property laws are in place. This means, if there are non-joint assets and debts in your name, and a prenup has been signed by the parties, there will be a division of assets and debts according to how you defined marital and separate property well in advance of your wedding. If a prenuptial agreement is in place, it will create a more even division of property and assets, and will guarantee that your spouse will not get the family heirlooms. Most importantly, the contract, or prenup, will define in advance of the wedding what you and your intended consider marital and separate property.
Dollars and sense
A prenuptial agreement is also a valuable tool to be used to ensure financial stability once the marriage falters. Many lawyers weave spousal support right into the prenup so division of assets is delineated before it become an issue. Likewise, there will be clauses for preserving the financial stability of the minor children, long before they arrive. Sometimes, of course, the children precede the marriage vows, so a legal maven, such as a top divorce lawyer in New Jersey, may tailor a prenuptial agreement to ensure from the get-go that money and assets will be directed to your children, not automatically funneled to your spouse. In the event of a second marriage, or a blended marriage, where children from one or more prior relationships may live in the household, a prenup will ensure your spouse will not acquire assets or property for his or her children as opposed to YOUR children.
No one on the threshold of a new life together wants to think about all these ugly scenarios that might transpire to you or your children and that might keep people from visiting a family law attorney before “the big day” and getting a prenuptial agreement in place. At any rate, cast aside your doubts and ill-will about the very idea of getting such a document in place for financial reasons – maybe, instead … just think of it as future peace of mind.