In today’s world, it pays to take a realistic approach to marriage. While no one preparing for marriage imagines it will end in divorce, statistics show that nearly half of all marriages do. Through a prenuptial agreement, couples can plan for the future, protect their separate interests and preserve their assets. Consider it your own practical insurance policy. Our dedicated marital agreement attorneys could help you draft this contract so you are prepared in the event of divorce.
To learn more about how prenups work in New York state, schedule a consultation with an experienced Albany prenuptial agreement lawyer.
Why Consider a Prenuptial Agreement?
There are a number of good reasons to consider a prenuptial agreement. These include:
One spouse brings considerable financial assets while the other does not;
One spouse forgoes a successful career in order to stay at home and raise the children;
Either spouse owns part of a family business or has a business they do not want to be considered marital property;
If the spouses have children from previous marriages; or
If the spouses have significantly different goals.
Prenuptial agreements lawyers could help someone understand all of the reasons why this is in their best interest.
What Terms are Prohibited in a Prenup?
While you can logistically put anything you want in a prenuptial agreement, the court will only enforce it if the provisions of the agreement are legal. For instance, you can’t require a spouse to launder money for your underworld enterprises. Additionally:
Child support and custody agreements cannot be reached in a prenup. In these cases, the courts have final say and will consider the best interests of the children regardless of what is placed in a premarital agreement.
Waiver of a right to spousal support or alimony will likely be tossed out if it is deemed by the court to leave the other spouse destitute. It is more common for a spouse to limit alimony in a prenuptial contract. If, however, a spouse is required to seek public assistance subsequent to the divorce, the state will nullify the alimony agreement.
Provisions that incentivize divorce will likely be tossed. The court has a vested interest in preventing such provisions from being enforced.
Our skilled prenup attorneys in Albany could help someone draft a document that avoids these topics while still protecting their property and financial future.
Separate and Marital Property in Prenuptial Contracts
No matter how controversial they once seemed, prenuptial agreements are now seen as useful tools for individual parties entering into a marriage. There is always a chance that separate assets will become commingled with other property. A prenuptial agreement can address the wishes of parties regarding separate property that generates marital property. Let an Albany prenup attorney help you classify your assets and debts in advance of a potential divorce.
How Marital Property Works
Let’s say you and your soon-to-be spouse are both successful business owners running and operating your own businesses. The two of you want to keep these businesses from becoming entangled in a divorce proceeding. Under the law, your property is whatever you owned prior to the marriage. Whatever you accumulate during the marriage is part of your marital estate.
Business, Real Estate, and Other Investments
Here is where it gets tricky. Let’s say you and your spouse are together for ten years. During that time, your business takes off while your spouse’s goes under. Even though you built the business and the business is in your name, your spouse owns 50% of the value that was added to the business during your marriage. In some cases, this can result in quite a lot of equity in the business. The exact same situation is true of real estate or other investments that accrue value during your marriage. In other words, personal property is whatever the value of the asset (including a business) was at the time of your marriage and, whatever gains it made during your marriage. This is part of the marital estate.
One very prudent reason why an Albany attorney may suggest getting a prenuptial agreement is to prevent your business or other assets from becoming title clouded during a divorce. A premarital contract can have the stipulation that a business remains your personal property (and not property of the marital estate) regardless of what happens during the marriage.
Second Marriages and Prenups
Prenuptial agreements are especially useful for parties entering into their second marriage or for marriages occurring later in life. As years progress, individuals generally acquire more assets. Through a prenuptial agreement, individual spouses can name separate assets and ensure their children are not cut off from their inheritance. This kind of estate planning due to second marriages should be analyzed by an attorney so that it complies with New York laws.
Why Are Prenuptial Agreement So Popular?
Frankly, people are getting married later in life. It is now common for both men and women to establish themselves in their career and marry when they are financially stable. They purchase a house together and then move in to begin their family. By then, one or both spouses may have built a growing business or have established an investment portfolio that they want to protect if things don’t work out.
Consider also that there are more women now than ever who have lucrative careers, considerable assets, and good reason to protect both. For that reason, many partners decide to hammer out a prenuptial agreement together in order to protect what they’ve built. Our Albany prenup lawyers could help a couple prepare a document that best suits both of their goals and needs.
Child Custody and Prenuptial Agreements in Albany
Those who are bringing children from a first marriage may want to consider addressing custody concerns in a prenuptial agreement. While spouses cannot enforce agreements related to future children, spouses may want to consider children from previous marriages in a prenuptial contract. This agreement can involve inheritance or property that might otherwise fall to the spouse in probate. The prenuptial agreement would act to reinforce the terms of a will in order to ensure those children are provided for. For such an important part of your life, it is best to work with a prenup attorney in Albany.
Avoiding a Contested Divorce in Albany
No couple enters into a marriage intending to one day divorce. However, planning for the unexpected is a responsible decision for any couple getting married.
Because a prenuptial agreement addresses the contentious divorce-related topics of property division, finances and alimony, many couples who do eventually divorce are able to avoid a contested divorce. We can help ensure that your agreement will be enforceable, no assets are hidden and full disclosure is made. Depending on your unique situation, it may actually be more beneficial to have our Albany lawyers offer estate planning assistance instead of a prenuptial agreement.
Consult an Albany Prenuptial Agreement Attorney
For more information about your marital contract or cohabitation options, please contact our Albany prenuptial agreement lawyers or online to schedule a consultation.