With many people marrying later in life nowadays, it has become increasingly common for couples, prior to marriage, to address what will occur with their assets and finances in the event of divorce by way of a “prenuptial” or “premarital” agreement. Having such an agreement in place can spare both parties costly and time-consuming litigation as well as significant stress in the event of a marriage’s unfortunate breakdown.
Couples may address a multitude of issues in a prenuptial agreement including, but not limited to, financial support, the division of property and debt, the treatment of each spouse’s income, the payment of marital expenses and estate rights upon a spouse’s death.
While it behooves all individuals contemplating marriage to consider a prenuptial agreement, it is particularly advisable where you:
- Were married before;
- Have children from a prior relationship or marriage;
- Stand to benefit from a trust;
- Expect to receive a monetary gift or inheritance;
- Own a business;
- Are marrying someone with substantial debt;
- Earn more than your future spouse; or
- Have more assets than your future spouse.
In contrast to a prenuptial agreement and far less common, a postnuptial agreement (sometimes referred to as a “mid-marriage agreement”) is made between spouses during the marriage to protect their rights and assets in the event of divorce. Due to the risk of manipulation with such agreements, same are subject to a higher level of scrutiny by the court upon divorce.
At Eveland & Foster, LLC, our attorneys can advise you as to the right type of agreement to best protect your interests.