Prenuptial Agreements

A prenuptial agreement offers each spouse certain protections in case they divorce in the future. This legally-binding document can do the following:

• Determine which property (such as homes, cars, and jewelry) would be marital assets and which would be separate
• Limit each spouse’s debt liability
• Protect the entitlement of children from a previous marriage to money and property
• Protect heirlooms, inheritances, business, and other family property

Couples have many options when creating their prenuptial agreement, but there are a few things the document cannot legally do. For example, it can’t defy criminal law or public policy. A prenup also cannot outline personal obligations, determine child support, custody, and in most cases, alimony.

Personal obligations: Prenuptial agreements cannot split up chores, outline a parenting plan, or require the spouses to behave in a certain way.

Determine custody or child support: Spouses cannot include decisions about where their children (or future children) will live in the event of divorce. They also cannot predetermine how much a spouse would pay in child support.

Violate the law: A prenup cannot defy criminal law or public policy.

Alimony (in most cases): Very few states will enforce spousal support obligations in a prenuptial agreement.

Before you get married, establishing a prenup will do more than protect your financial future. It can also start an important conversation about the assets you and your fiancé have and plan to have in the future.

Ready to write up an agreement? Use the below checklist to get started.

• List the property and assets you and your fiancé own separately.
• Identify the assets you bought together.
• List your separate debts and other liabilities.
• Note any inheritances you know you’ll each receive.
• Talk about your future financial goals.
• Write down important financial issues you would like to include.

If you and your soon-to-be spouse have decided to file a prenuptial agreement, you have already taken the first step toward smart future financial planning. Next, there is a lot to think about. The following steps will help you navigate the process of creating a strong premarital agreement — even if you never need to use it.

Preparation

Tackle the document as early as possible. When you give yourselves enough time, you’ll be able to thoroughly consider the terms you want to include and to make any necessary revisions without rushing.

Before you meet with an attorney, there are a few lists you and your partner can make. In our prenuptial agreement FAQ, our attorneys outline the factors to think about ahead of time:

1. All your property and assets
2. Your debts and other liabilities
3. Inheritances you have or expect to receive
4. Your future financial goals
5. Any financial-related issues that might be important to discuss

By getting started early and having a private discussion before your first meeting, you and your soon-to-be spouse will be ready to create a great first draft.

Reasonableness

Be reasonable when coming up with the terms of your agreement. Avoid a one-sided prenup. It will not hold up in court if you ever need to use it. Creating a strong prenuptial agreement is an exercise in communication. Give each other the same respect and courtesy you always do.

Simple Content

Once you know all the terms you want to include, be as clear as possible. Use plain language in your agreement. There is no need for technical terms, legalese, or minute and unnecessary details.

In addition, be sure to draft a clause to protect each other in the event of death. It’s a good opportunity to identify how your spouse will be taken care of.

Thoroughness

Make sure you read the entire document before signing it. Avoid rushing into an agreement you aren’t comfortable with or clear on. Take your time and ask any questions you might have.

Counsel

You and your partner should each have your own lawyer when creating the agreement. One partner will typically have an attorney draft the document and then send it to the other for review. At Petrelli Previtera, LLC, we have served clients on either side of the process.

If you’re ready to start the process of creating a prenuptial agreement, feel free to call our firm. We can further discuss the steps you and your partner should take.

Before meeting with one of our attorneys, you can list the following:

1. Property and assets you own separately
2. Property and assets you purchased together
3. Debts and other liabilities you are separately responsible for
4. Inheritances you will each receive
5. Your future financial goals as individuals and as a couple
6. Any financial-related issues that might be important to discuss while establishing the agreement

Taking a moment ahead of time to list these details is a great way to start the discussion and prepare to draft the document.

Historically, there has been a negative stigma around prenuptial agreements, often perceived as planning for failure. However, these agreements are designed to bring clarity to financial aspects of marriage, ensuring both partners understand their respective rights and responsibilities. Recent data reflects a shift in perception: A September 2023 Harris Poll found that 50% of U.S. adults at least somewhat support prenups, though only 1 in 5 married couples have one. As more individuals marry later in life, they consult attorneys to secure their assets, businesses, and other valuables. Opting for a prenup doesn’t signal mistrust; it’s a pragmatic approach to modern marriage.

You have already decided to take the first step toward smart financial planning as a married couple. When drafting your prenuptial agreement, keep these qualities in mind:Time and preparation: Give yourselves ample time before the wedding to complete the steps.

Fairness: The court will not accept an agreement that doesn’t seem fair. Think reasonably and focus on one another’s best interests when discussing the terms of the agreement.

Simplicity: There is no need for complicated text. Put the prenuptial agreement in plain language, and only go into extra detail when necessary.

Be sure to review the entire final draft before your attorney files it. Ask questions if you are unsure about the terms, and speak up if something might be missing.

Prenups are never a bad idea. If you have assets that you want to protect, you should always think about creating a prenuptial agreement. This will help clarify exactly what your terms are and what you expect in the future.

The most important thing to keep in mind is having open communication with your spouse if a prenuptial agreement is something you want.

One of the most frequently asked questions is if you can create a prenuptial agreement after the marriage is legal. The answer is yes! However, it is called a post-nuptial agreement. This may happen if there is financial trouble, legal problems, or if the couple decides to have kids and want to protect their inheritance. It also may happen if a person has inherited money from family members. You will always have the option to sit down with an attorney and receive help.

If you are worried about what others will think of a prenuptial agreement, don’t worry. Our attorneys at Petrelli Previtera, LLC will help you put your fears at ease. This is a natural part of the relationship that many couples go through. You will be able to discuss all of the assets that are most important to you.Contact Petrelli Previtera, LLC today to book a consultation call and begin finding clarity!

Both soon-to-be-spouses should know exactly what the terms of the prenuptial agreement mean. When a couple decides to establish a prenup, one person will typically have an attorney draft the document and then send it to the other for review. Our firm can act as counsel for one spouse and draft the agreement. Then, the other spouse’s attorney can review it. Alternatively, we can review a proposed prenuptial agreement to determine whether it is complete, legal and equitable. If the document could be better, our attorneys can help make the necessary revisions.

Cryptocurrency is a valued financial asset that should be considered in a prenuptial agreement. Just like other financial assets, if owned, cryptocurrency should be declared by any party that owns them so that a determination can be made about whether they are separate assets or marital assets. Although this is an emerging trend, people are beginning to address cryptocurrency in their prenuptial agreements. The challenge with discovering cryptocurrency in a divorce is locating it. Including it in a prenuptial agreement confronts that challenge by addressing the asset, disclosing the asset, and then protecting the asset just like other assets in the agreement.