If you’ve already been through a divorce, then you probably already know that the more organized and clear-cut your finances are as a couple, the easier it is for a divorce settlement to be reached. A prenup can help you achieve this. If you have assets that you plan to someday give your children, getting married may complicate whether those assets would need to be divided if the marriage ends in divorce.
Establishing a prenuptial agreement is a way for parents to make sure assets and property intended for children are kept intact. If you’re leaving your career to stay at home with the kids, making decisions beforehand about spousal support can provide peace of mind that if your situation were to change, you would be financially protected.
There are situations where one person is more wealthy, or not as wealthy as the soon-to-be parent. If you are entering a marriage with considerable assets, executing a prenuptial agreement is a way to protect these assets from being divided in the event of a divorce. A prenup for the less asset-rich spouse can be equally important in terms of negotiating for a spousal support amount and the other assets as well, such as living accommodations, that will allow you to continue the same lifestyle you enjoyed during the marriage.
If you already have a home and a retirement plan, and your soon-to-be spouse has ample savings, you may want to come to an agreement that these financial resources be kept separate from marital assets.
A common prenup scenario is when one party owns a business. A prenuptial agreement can protect the family business from being subject to equitable distribution should a divorce occur in the future. We see situations where one party is poised to begin a new career. For instance, are you the main breadwinner right now as you support your fiancé through medical or professional school? A prenuptial agreement can spell out terms of spousal support based on projected future salaries and income levels. Also take into account support by one spouse to make the other spouse’s lucrative career possible.
Bari Zell Weinberger is the owner and managing partner of Weinberger Law Group in New Jersey. She is Certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney.