PRENUPTIAL AGREEMENTS

It is becoming increasingly common for a couple preparing for marriage to prepare a prenuptial agreement — a binding contract detailing the way in which the couple's marital and nonmarital assets will be distributed in the event the marriage ends through divorce, legal separation, or the death of one spouse. The degree to which a prenuptial agreement serves its intended purpose is directly related to the quality of the document.

Benefits of a Prenuptial Agreement

Not every couple needs a prenuptial agreement, but every couple can benefit from learning about mutual problem-solving and financial planning that leads to the security provided by a prenuptial agreement. Prenuptial agreements can serve a wide range of purposes, including the following:

• Protecting children from a previous marriage, preserving assets that without a prenuptial agreement would become part of the marital estate
• Providing partners, members, or shareholders in a closely-held business with the control necessary to manage the business in the event of death or disability of one spouse
• Defining the way in which assets accumulated before marriage, including an interest in a home or business, will be kept separate from marital property or distributed in the event the marriage ends
• Defining limits to the amount and duration of alimony (spousal support) in the event of legal separation or divorce
• Establishing a way to handle future disputes over money and practical matters during the marriage
Problems with Prenups

A poorly worded prenuptial agreement may in part or in whole fail to provide the protection promised. If prepared incorrectly, the prenuptial agreement may be declared invalid by the court.
 
Begin Early

I  recommend drafting your prenuptial agreement as far in advance of your wedding as possible. Not only does this allow more time to thoughtfully work out the terms of the agreement, but also an agreement signed six months before the wedding is seen by the court as a stronger contract than one signed right before marriage. For that reason, it is critically important that, if you are negotiating a prenuptial agreement a short time before your wedding, you work with experienced legal counsel.