Posts Tagged ‘prenuptial agreement’

Am I Required to Disclose Everything in a Prenup?

Wednesday, April 10th, 2019

A prenuptial agreement is a good tool to use to avoid a lengthy and costly divorce later. Of course, no one plans on getting divorced before they even get married, but if you have valuable assets or plan on acquiring ones, and you don’t want to risk losing them in the event of a divorce, a prenup is something to consider. However, many are under the wrong impression that the finalization of a prenup is a simple signing of a contract. In reality, before a prenuptial agreement can be approved, both parties must complete a financial disclosure statement, identifying all of their assets and debts. The parties will be viewed to have a confidential relationship which brings with it the duty to disclose, mutually attributed to each party.

A lack of complete disclosure may result in the parties’ agreement being invalidated., especially where there is an obvious inequity between the parties’ assets. A big part of the court approving a prenup is if they consider it to be fair to both parties. In order to avoid any potential issues, later on, full disclosure must be in writing. Each party should draft a financial disclosure affidavit, which will be attached to the prenuptial agreement as an addendum. This schedule should clearly demarcate, and thereby disclose, all of the party’s assets to the other. There should be a listing of the party’s assets, along with how much it is valued; any current outstanding liabilities, the amount/sources of the party’s income, any interests in businesses, partnerships, and any expectations of inheritances or gaining of another asset.

After this, the party’s will review and sign the section of the agreement that states that both parties have read each other’s financial disclosure affidavits, understand it, acknowledge reading it, and have had the opportunity to consult with their attorney about it prior to signing. This protects both parties from the other claiming they never had the chance to review or look over the documents. However, it is important to keep in mind that in the event you are getting a divorce, if you can prove your spouse did not fully disclose their income or assets at the time you signed the prenup, you may have grounds to have the agreement thrown out.

What Do I Do if I Acquire Assets I Want To Protect After We Get Married?

Wednesday, March 27th, 2019

Usually, if someone has personal assets, such as stock options or an inheritance, they have to come to an agreement with their soon-to-be spouse to sign a prenup, which details the separation of marital assets in the event of a divorce. The term “protect” is used in the sense that by signing a prenup, you can protect your assets from being considered marital, thus ensuring they are not available for distribution upon divorce.

Is it too late if we are already married?

In some cases, a person may not acquire assets that they consider are worth protecting until, for example, 8 months into the divorce. At this point, you are no longer able to draft a prenup, as that is an instrument only available before the marriage. In this instance the couple would require a postnup, which achieves the same goal as a prenup, it is just signed after the individuals have married.

Enforceability and Disclosure of a Postnup

Something important to keep in mind is that full and fair disclosure is an important part of a valid and enforceable postnup. When each party enters into the agreement, they both must completely disclose to the other party of their assets, liabilities, and income. This should also include assets you are reasonably aware you will be acquiring in the near future, such as the situation listed above. If the information that one of the spouses provided was not transparent, the agreement will not be enforceable when the time comes to get divorced.

Alternate Reasons

Postnuptial agreements are sometimes made in reaction to an event or pattern of behavior after the initiation of marriage, that gives cause to creating a plan for divorce. Excessive gambling, drug or alcohol abuse and financial hardship are common catalysts for spouses hiring attorneys to draft postnups, but as stated before, it does not always have to be in reaction to a negative event.

3 Reasons Why You Should Get A Prenuptial Agreement

Saturday, February 2nd, 2019

Almost everyone has some type of asset: Regardless of whether an asset is personal or business owned, if it was acquired prior to the marriage, and you plan on continuing to own them during the marriage, it is advisable to get a prenup. In the event of a divorce, a prenup will dictate the distribution (or lack thereof) of premarital assets. A prenup also allows the original owner of said asset to retain it. In the event of a divorce, not only does this help to expedite the divorce process, since there is nothing to debate, but it also alleviates any stress or worry that you may not be able to keep the asset.

Divorce proceedings can take longer if finances need to be discussed: Since so many married couples end up co-mingling assets and other properties, it can be difficult to trace what is separate property and what is joint. A prenup can address whether or not there will be spousal support in the event of divorce, once again resolving a frequently battled topic without court intervention. Once again it helps to expedite the divorce process and alleviate any stress of ownership over the item. It is important to keep in mind, however, that the prenup must be deemed “fair” by the court at the time it is enforced.

Today, nearly half of all marriages end in divorce: Although it may not be the most romantic move, and brings into the realm of possibility that divorce can happen, it is important to protect yourself and your assets, since no one can predict how a marriage will turn out. Moreover, in the event of a divorce, you want to have some financial backing to fall on, as expenses and financial responsibilities can change drastically as a result of divorce.

Since the possibility of divorce exists, a prenup is a wise move because financial distribution is one of the most complicated and dragged out matters in a divorce, and having it figured out beforehand would be preferred. Ultimately, the prenuptial marriage agreement will spell out how the financial aspects of the marriage are to be dealt with, without the need for discourse in the courtroom, and removes all ambiguity.

Can A Prenuptial Agreement Protect Future Earnings?

Monday, December 10th, 2018

A prenuptial agreement, or “prenup”, is a tool utilized by both parties to protect their individual rights, as well as obligations, in the event of a divorce. Moreover, prenups cover the distribution and handling of property, real and personal, marital and separate. For example, if one party owned a house prior to marriage, they are likely to include a provision stating:

  • Which party will the property be retained by,
  • Who will be responsible for the costs of maintenance of the property,
  • How money obtained either through the selling or leasing of the property will be distributed between the parties.

Another use for prenuptial agreements is to protect future earnings. Although a party may not have any significant assets before or during the marriage, it doesn’t necessarily mean that they don’t expect to acquire significant assets in the future. With a prenup, the spouse can pre-emptively protect any earnings from their professional career in the event of a divorce. A good example could also be someone who expects to inherit or take over a “family business” prior to getting married, and so this planning in advance negates a possibility of that ownership being in jeopardy.

In order for the prenup to protect your future earnings and potentially gained assets, the prenup should be drafted by an experienced attorney, who knows how to correctly articulate what you want protected and preserved in the event of a divorce. The last thing you would want is for a vague and unclear prenup to be drafted and agreed upon, only for the judge to interpret it differently than you had planned. The prenup must be in writing and signed by both parties. The enforceability of a prenup is decided upon by the court, so long as the agreement was signed by both parties voluntarily, and the prenup is considered fair to both parties, it will be enforced.