A prenuptial agreement is also known as a “prenup,” a premarital agreement or an antenuptial agreement. This agreement is a signed, notarized agreement made by a couple who are planning to get married. The agreement addresses the full disclosure of the financial issues regarding one’s net worth, including property and other pre-marital assets and liabilities, as well as those which may be obtained during the marriage by one or both parties and the division of these assets and liabilities in case of divorce, or death without a Will. Having a prenuptial agreement does not mean you are anticipating divorce, it builds trust between a couple and can provide them with monetary and emotional security knowing that they have made certain provisions for their future.
In these difficult financial times, premarital agreements can be used as a financial planning tool for couples planning to marry or re-marry. This agreement can protect one partner in the event the other partner secretly acquires a large amount of credit card debt that could negatively affect both partners’ credit scores. Marriages between older couples and those entering into second or third marriages can involve more assets and/or children which they wish to protect and provide for financially. Prenups can also address a family business or inheritance that a partner wants to stay in their family to be passed on for generations.
Premarital agreements can address how property is divided, owned, or inherited in the event of separation of the parties as well as spousal support and education of the children. A premarital agreement cannot address child custody, child support or issues relating to the couple’s marital home. Couples who do not have a prenuptial agreement and disagree on the division of assets are leaving their financial future in the hands of the Courts or future litigation.
While the caterer, florist and photographer are important in planning for your wedding a prenuptial agreement is just as important, if not more important, in planning for your future together.
Even if you do not plan to marry, living together is a big step in a couple's life. Unlike married couples who are protected by New Jersey divorce laws when they marry, unmarried couples are not automatically protected by New Jersey laws once they begin living together. If you do not define your partnership in the form of a legal contract, in the event the relationship doesn't work out and you separate, or one of you dies, you may not have any legal rights with respect to property rights, inheritance and pensions. To legally protect yourself and your interests, it is important for couples who choose to live together to have a cohabitation agreement defining their legal and financial obligations to each other. Having a cohabitation agreement is the best way a couple can avoid future legal problems. The best time to enter into a cohabitation agreement is before you begin to live together, but it can also be prepared after that. Contact us for a FREE CONSULTATION to discuss how we can help ensure that legal interests of all parties are protected.