People don’t go into marriage expecting to divorce. However, you never know what the future may hold. It is smart to plan for any eventuality to protect your financial well-being. Prenuptial agreements, also called premarital agreements, aren’t all about divorce, though. A prenup can also aid marriages by opening lines of communication and clarifying future expectations.
6 REASONS TO CONSIDER A PRENUPTIAL AGREEMENT
The following sections discuss some common reasons people get prenuptial agreements. You may have other concerns not considered here that can be addressed through this legal contract. An experienced New Jersey family lawyer can help you understand, based on your specific circumstances, the safeguards a prenup may offer.
PROTECT SEPARATE PROPERTY
To be sure, signing a prenuptial agreement has certain divorce-related aspects. For example, a prenup can help ensure that you leave the marriage with the property and assets you brought to it, which is one of the primary reasons people enter into these agreements.
While assets owned before marriage are generally considered separate property that is not subject to division in a divorce, there are exceptions. Often, both spouses will benefit by clarifying that the assets they had before marriage will remain theirs in the event they split up even if they end of commingling the funds or asset. Doing so may avoid potential battles over the assets should the marriage end.
CLARIFY DEBT RESPONSIBILITY
A prenuptial agreement can shield you from each other’s debts by clarifying who is responsible for which financial obligations that accrue during the marriage. Your prenup could state that each spouse is solely responsible for paying off their own credit card debts incurred prior to the marriage, or perhaps whatever each of you individually charge during the marriage even if the charges are for marital expenses. If your spouse has significantly more debt than you, this can be crucial.
Conversely, an agreement could state that a high-earning spouse will help pay off the other spouse’s outstanding school loans and also clarify whether the payor spouse gets reimbursement for that in the event of a divorce. There are many different options for drafting prenups to clarify who pays for what debts and what the protocol should and should not be. Setting clear expectations up front can help avoid contentious disputes later on.
ESTABLISH PARAMETERS FOR FINANCIAL MANAGEMENT
Your prenup can be used to set rules for saving, spending and financial management during marriage. This can include everything from setting savings goals to determining investments to imposing limits on discretionary spending. A prenuptial agreement can act as a tool for getting couples talking about finances and implementing wise financial planning that can be valuable throughout the marriage.
RESOLVE ISSUES RELATED TO CHILDREN FROM PREVIOUS RELATIONSHIPS
If you or your soon-to-be spouse have children from previous marriages or relationships, a prenuptial agreement can help protect their interests. A prenup can establish terms regarding financial support, gifts, and related matters. It can also designate future inheritances you want your children from the previous marriage to have when you die.
ADDRESS CONCERNS ABOUT BUSINESS OWNERSHIP
Prenups can protect businesses from the repercussions of divorce. A privately held business is a form of property; and, while a business is very different from a car or bank account, determining its value and what share your spouse may be entitled to is subject to the same basic rules of property division under New Jersey’s divorce laws.
If you had the business before the marriage, it may be considered separate property. However, those lines can blur if your spouse contributed significant time or money to it. Without a prenup in place, you could lose your business or be forced to divide it with your ex-spouse.
Additionally, disputes about joint management, spousal employment, reinvestment of profits, and various other business-related issues can lead to conflicts during the marriage – not to mention adding multiple layers of complexity in the event of a divorce.
ESTABLISH GUIDELINES FOR RESOLVING DISPUTES
You can incorporate dispute resolution solutions into a premarital agreement, such as a requirement to go to marriage counseling or use mediation to resolve conflicts, which may help avoid divorce. Disagreements over finances and other issues are a part of marriage, and it can be a sign of a healthy relationship when spouses feel comfortable speaking their minds. But, sometimes, even in strong marriages, spouses can find it difficult to come to terms. Having a previously agreed-to plan in place for settling differences can prevent feelings of resentment and hostility that could potentially lead to the marriage ending.
ADDRESSING YOUR FUTURE SPOUSE’S CONCERNS ABOUT A PRENUP
While there are numerous reasons for getting a prenup, they can be a touchy subject. Your future spouse may wonder why you need one. But it isn’t about why one partner needs the agreement. It’s about how a prenuptial agreement can benefit both of you and not for nothing, it’s an interesting exercise to see how you both work with and ultimately resolve conflict.
If you believe that it is in your best interests to get a prenup, tactfully explain to your future spouse the advantages it can offer you both. The reasons discussed here can help you do that by illustrating instances where it is in the interests of both of you to address issues in writing. By doing so, you can show that, contrary to popular belief, getting a prenuptial agreement is about much more than planning for divorce. It is also about planning for a successful future together.
NEW JERSEY LAW GOVERNING PRENUPTIAL AGREEMENTS
N.J.S.A. 37: 2-34 describes what can be included in prenups in New Jersey and the requirements for these agreements to be valid. They must be in writing, signed by both parties, and include statements of assets and debts from both parties. When these requirements are not met or prenups are not otherwise properly prepared, they could be unenforceable in the event of a challenge during divorce or in another dispute.
GET EXPERIENCED HELP WITH YOUR PRENUP FROM A NEW JERSEY FAMILY LAWYER
If you’re considering a prenup, for your own protection you should get the help of a family law firm with extensive experience preparing premarital agreements that stand up to challenges. At [MFR] Men’s & Fathers’ Rights Divorce Lawyers we help clients enter into legally enforceable prenuptial agreements tailored to their unique needs. To arrange a consultation, call (201) 880-9770 today.
