Prenuptial Agreements


Prenuptial agreements describe the rights, duties and obligations of prospective spouses during and upon termination of marriage through death or divorce. These contracts are often used by individuals who want to ensure the proper and organized disposition of their assets in the event of death or divorce.

Among the benefits that prenuptial agreements provide are avoidance of costly litigation, protection of family and/or business assets, and protection against creditors. In order to be valid, the agreement must be considered by a Court to be both fair and reasonable.

A prenuptial agreement may address, among other things:

(1)    the modification or elimination of spousal support;

(2)    the disposition of property upon separation, marital dissolution, or death; and

(3)    ownership rights in and disposition of proceeds from a life insurance policy.

A prenuptial agreement may address any other matter that does not violate public policy or a statute imposing a criminal penalty. However, under no circumstances can a child's right to support be adversely affected. An enforceable prenuptial agreement must be written and signed by both parties. In addition, both parties must have contractual capacity and have entered into the agreement voluntarily.

It is necessary for each party, before executing the agreement, to provide fair and reasonable disclosure of property and financial obligations. If, however, one party had or reasonably could have received adequate knowledge of the other's property and financial obligations, the agreement will remain enforceable. The agreement must not be unconscionable at the time it was executed. To enhance enforceability, prenuptial agreements should be discussed and entered into well before the wedding.

The advantages of a prenuptial agreement include:

(1) Avoiding Litigation Costs

(2) Protecting Family Assets

(3) Protecting Business Assets

(4) Protection Against Creditors

(5) Establishing parental responsibility and primary residence of any children