The reasons why you might want a prenuptial agreement

If you are planning to get married in the near future, it may be worth considering a prenuptial agreement. Such an agreement will typically override New York property division laws assuming that it is created properly. Let’s take a closer look at some of the reasons why you may want to create such an arrangement with your partner.

Prenuptial agreements can clarify how assets are labeled

This type of contract can state that any property owned by either party prior to the marriage shall always be considered separate property. Furthermore, it could stipulate that a debt incurred by one party during the marriage is to be considered that person’s individual debt. It’s worth noting that such an agreement can be used to stipulate how assets acquired after the marriage begins shall be classified. For example, the contract could say that a business that you started six months after getting married belongs to you in the event of a divorce.

Do you have significant financial resources?

Prenuptial agreements may be ideal for those who have accumulated a significant amount of wealth prior to getting married. They may also be ideal for those who come from families that have a significant amount of money. This is because they may stipulate that your spouse is only entitled to a specific amount of money in the event of a divorce.

Generally speaking, New York law requires a divorce settlement to be deemed equitable to both parties. Therefore, without a prenuptial agreement in place, you may risk losing a significant amount of money if your marriage ends for any reason.

When structured in accordance with state law, a prenuptial agreement may be an effective way to protect current or future assets. It may also make any future divorce much easier to complete because the terms of the eventual settlement will be mostly decided already.