Many engaged couples use prenuptial agreements. Rather than a sure path to divorce, a prenuptial agreement can help a couple communicate about finances and child-rearing thereby preventing some arguments during the marriage.
A prenuptial agreement is a contract between future spouses that settles issues of property and support in the event of death or divorce. In New York, a prenuptial agreement is made before the marriage and will take effect on the date of the marriage.
“Prenups” must be in writing and signed by both future spouses and duly acknowledged before a notary public. (An oral prenup or an unsigned agreement won’t be upheld in court.)
Who Should Get a Prenuptial Agreement?
The rich and famous aren’t the only ones who need prenups. A single parent might want a prenup to protect her child’s inheritance. In some circumstances, a spouse may want to keep a family home or a business separate. For example, I did a prenup for an individual whose parent would transfer the family business to him, only if he entered a prenuptial agreement that protected the business in the event of a divorce.
Without a prenup, a couple’s property will be divided in accordance with state law upon the death of either spouse or a divorce. A prenup allows a couple to control how their assets and debts are divided based on their unique needs.
In our next blog post we will outline the specific issues that a prenup can cover.
© Arnold D. Cribari 2016
